CCAGW Opposes H.R. 5719, the "Taxpayer Assistance and Simplification Act of 2008" 

April 15, 2008

U.S. House of Representatives
Washington, DC  20515

Dear Representative,

          Today you are scheduled to vote on H.R. 5719, the “Taxpayer Assistance and Simplification Act of 2008.”  The title of this bill obscures what it will do.  This legislation will impose burdensome regulations on the trustees of Health Savings Accounts (HSA) and it would repeal current law that allows the Internal Revenue Service to use private debt collectors.  On behalf of the more than 1.2 million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I ask that you oppose this legislation.

          Our entire tax system is based on self-reporting.  While there are no real restrictions in how to use HSA funds, if someone spends the money on a non-qualified expense, they must pay a 10 percent additional tax, just as someone must pay a penalty if they withdraw funds early from an Individual Retirement Account.  This bill will add new burdens that will add costs to HSAs, which ultimately will be borne by the consumer.  It will interfere with the whole purpose of HSAs consumer-owned and directed healthcare that leads to lower overhead costs.

          CCAGW also opposes terminating the successful private debt collection program that has brought in millions of uncollected monies owed to the government.  Eliminating this program would result in a loss of $578 million in revenue over the next ten years.

          I urge you to oppose H.R. 5719.  All votes on this legislation will be among those considered for CCAGW’s 2008 Congressional Ratings. 

Sincerely,

Thomas Schatz,
President