Senate Official Targets Tax-Dodging Federal Employees with Bold New Legislation

EXCLUSIVE: With Tax Day fast approaching, the Senate’s DOGE leader has announced a major initiative aimed at addressing the alarming issue of federal employees who have accrued extensive unpaid taxes. This effort, unveiled on Monday, seeks to hold those in the federal bureaucracy accountable for their financial responsibilities.

Sen. Joni Ernst, R-Iowa, is set to introduce the Tax Delinquencies and Overdue Debts are Government Employees’ Responsibility Act, widely referred to as the Tax DODGER Act. This legislative proposal arises from troubling reports of tax evasion within federal agencies, highlighting a contradiction where government workers fail to contribute to the very system they are obligated to support.

Key Provisions of the Tax DODGER Act

The Tax DODGER Act stipulates that the Internal Revenue Service is required to generate and publish an annual report on the tax delinquencies of current and retired federal employees. This report will encompass those individuals who failed to file their tax returns, including the standard Form 1040.

Senator Ernst expressed her outrage, stating, “It is unacceptable that while hardworking Americans pay their dues to Uncle Sam, approximately 150,000 bureaucrats choose not to fulfill their own tax obligations.” This statement encapsulates the frustration shared by many who feel that government employees should not be exempt from tax responsibilities.

Establishing Accountability for Federal Employees

In addition to publishing annual reports, the proposed legislation aims to create a framework for hiring decisions that considers tax compliance. Specifically, any federal job applicant with “seriously delinquent” tax debt may be deemed ineligible for employment unless they are granted a hardship exemption.

Ernst firmly stated, “If you don’t pay taxes, you should not work for the federal government.” This declaration reflects a zero-tolerance approach to tax evasion among government officials, which many taxpayers find compelling.

Addressing the ‘Rules for Thee, But Not for Me’ Mentality

The senator’s determination to transform Washington’s prevailing attitudes regarding tax compliance is clear. Ernst emphasized her mission to dismantle what she described as the ‘rules for thee, but not for me’ mentality that some perceive as prevalent in the nation’s capital.

In support of her initiative, she referenced a recent report from the Treasury Inspector General, which revealed that while a staggering 96% of IRS employees maintain tax compliance, over 2,000 individuals owe a combined total of more than $12 million in overdue taxes as of last year.

Widespread Federal Tax Liabilities

Furthermore, a 2023 report from the IRS disclosed that a total of 149,000 federal employees were responsible for $1.5 billion in outstanding tax liabilities for the fiscal year 2021. These findings call into question the integrity of those who administer tax laws and may diminish public trust in government institutions.

The urgency of Ernst’s call to action resonates amid concerns about the effectiveness of federal agencies. She reached out to Treasury Secretary Scott Bessent in March, urging him to take decisive action to rebuild public confidence in the IRS. Her appeal reflects a broader desire for accountability within tax systems.

Political Weaponization and IRS Reforms

Ernst’s criticism does not solely focus on tax compliance; she also pointed to instances of political weaponization within the IRS. Historical allegations, such as the Obama-era targeting of conservative groups by former IRS staffer Lois Lerner, illustrate the need for systemic reform and transparency in the agency’s operations.

In previous efforts to improve the IRS, Ernst has called for modernization of the agency’s technology and practices, indicating that outdated systems can hinder its effectiveness. A thorough audit of the IRS, which she proposed last fall, was part of her campaign to improve the agency’s accountability and efficiency.

Legislative Impact and Future Actions

If the Tax DODGER Act secures passage, it will mandate that reports on tax noncompliance among federal employees be forwarded to the Office of Personnel Management, the Senate Homeland Security and Government Affairs Committee, and the House Oversight Committee on an annual basis.

Moreover, the bill would empower agency heads to take necessary personnel actions, including termination, against federal employees found to have understated their tax liabilities or failed to file required returns.

Pursuing a Fairer Tax System

As the call for fair tax compliance continues to gain momentum, the ramifications of Ernst’s proposed legislation could reshape the employment landscape within the federal workforce. By implementing rules that ensure accountability and transparency, the aim is to restore trust among taxpayers.

Senator Ernst’s efforts highlight a growing concern about the responsibilities of government employees and their role in upholding the standards of tax compliance. With increasing public scrutiny on accountability, this initiative may serve as a significant step toward fostering a more equitable tax system in the United States.