Mr. President, I thank my colleague from Montana for this opportunity. I call up my amendment No. 2625, which is at the desk, and ask for its immediate consideration. Mr. President, I ask unanimous consent that the reading of the amendment…
Mr. President, I thank my colleague from Montana for this opportunity. I call up my amendment No. 2625, which is at the desk, and ask for its immediate consideration.
Mr. President, I ask unanimous consent that the reading of the amendment be dispensed with.
Mr. President, I ask unanimous consent that Senator Collins be added as an original cosponsor.
Mr. President, I call up my amendment at the desk and ask for its immediate consideration.
In October 2004, Congress enacted the American Jobs Creation Act of 2004, Public Law 108-357, providing for outsourcing by the Internal Revenue Service, IRS, of collection of unpaid and past due Federal income taxes. The bidding process for the initial contracts is currently underway. Eventually, after full implementation of the program, it is estimated that these contracts will create up to 4,000 well paying private-sector jobs.
The amendment that Senator DeWine and I are offering today would establish a preference under the debt collection contracting program for contractors who meet certain threshold criteria relating to employment of disabled veterans and other severely disabled persons. The amendment further requires that at least a specified percentage of the individuals employed by the contractor to provide debt collection services under the contract with the IRS qualify as disabled veterans or severely disabled persons.
If Federal employees conducted the same tax collection activities, current law would give preferences to disabled veterans in filling those Federal jobs. In addition, if other persons with severe disabilities were employed by the Federal Government in those jobs, those disabled persons would benefit from the Federal Government's long history of nondiscrimination and policies of promoting job opportunities for the disabled.
Despite multiple Federal programs, benefits offered thorough a variety of agencies, and various tax incentives, unemployment rates for persons with disabilities, PWDs, are extremely high. The 2000 Census estimated that there were 31 million working-age Americans with disabilities, with an unemployment rate of 70-80 percent. Today, there are 2.6 million veterans receiving service-connected benefits, including disability benefits with an additional 340,000-plus applications pending by other veterans.
By enacting legislation to allow the IRS to outsource debt collection, Congress certainly did not intend to curtail the national commitment to creating meaningful job opportunities for disabled veterans and other severely disabled persons. Indeed, the contracts which the IRS will soon execute with private-sector debt collection companies provide a unique opportunity for the Federal government to stimulate creation of well-paying jobs for disabled veterans and other persons with severe disabilities.
To realize this opportunity, however, Congress must act to assure that existing Federal employment preferences for disabled veterans and Federal policies promoting opportunities for other severely disabled persons are carried forward as a part of the IRS's contracting criteria. My amendment, that I am happy to be offering with Senator DeWine, achieves this goal.
Our amendment would establish a preference for companies that currently employ a minimum of 50 disabled veterans or persons with severe disabilities, who also must be capable of fulfilling the task. Once the IRS award is made, the debt collection contractor would be required to ensure that 35 percent of the workforce fulfilling the contract be new hires that are persons or veterans with disabilities.
Under this amendment, a minimum of 140 full-time equivalent jobs, also known as FTE jobs, would be created for PWDs at third-party debt collection agencies contracted to collect certain past dues income taxes. An FTE job is equivalent to one (1) 40-hour job or two (2) 20-hr weekly employees or four (4) 10-hour per week employees. These jobs are often part-time; 140 FTEs could translate into close to 300 part-time positions for disabled individuals.
This amendment would not only help to alleviate the current unemployment rate of PWDs, it would also generate substantial savings. These jobs pay anywhere from $19,000 annually up to $40,000 annually and can include health and 401(k) benefits. Even at the low end, this income level is too high to qualify for supplemental security income- disability insurance benefits. Thus, individuals in these programs who take these jobs will no longer require government benefit subsidies from SSI or DI, even if otherwise qualified. Over a 5-year period, the SSI/DI savings are estimated to be $69-$75 million.
To qualify under this amendment, a company must hire 50 PWDs. If 10 companies do this, the net result is employment of 500 PWDs who currently do not have jobs. If 20 companies participate, 1,000 PWDs would be gainfully employed. The savings realized with 1,000 PWDs no longer needing SSI/DI benefits could be as high as $344 million.
The IRS debt collection program is already established. The provisions in this amendment offer the added benefit of more jobs for disabled veterans and the reduction of Federal benefit program costs.
We owe it to our service men and women to improve their futures in any way we can. We have the opportunity to not only show our support for our disabled veterans, but to also show the severely disabled that we believe in them and in their abilities.
I urge my fellow Senators to support this amendment, to support our veterans, and to support the severely disabled.
Mr. President, I call up amendment No. 2625.
Mr. President, it has already been offered and is ready.
Mr. President, the Treasury Department has the capacity by law to outsource contracts to collect unpaid tax debts. As it currently stands, as they contract with employers, many of the benefits that have existed in the past for the hiring of disabled workers, disabled veterans, would not carry forth in these contract situations as they do for employment in the Federal Government.
This amendment will enable the Treasury Department, in awarding contracts, to give a preference to those companies that hire and engage disabled workers and disabled veterans. There is no tax money involved in this. There is no tax credit. They just have a preference if they hire disabled workers. These disabled workers will come off the Social Security SSI benefits and the disability DI benefits. They will become taxpaying citizens.
I think this is a great amendment. I hope my colleagues will accept it.
I thank the Chair for the opportunity to speak.