Iowans tell me they want Congress to pull back on the reins and stop overspending. As Iowa’s senior U.S. Senator, I couldn’t agree more. When holiday shoppers go overboard in December, they often pay the price after the New Year when the bills are due.
Many households trim spending to get back on track. But when lawmakers ring up annual deficits that drive up the national debt, the burden is shifted to future generations.
Congress resumed writing the federal budget in red ink to address compelling needs of the nation. The War on Terror, reconstruction of the U.S. Gulf Coast following Hurricane Katrina and homeland security added up to significant spending pressures. Combining those spending priorities with built-in spending obligations that fund essential government services and entitlements added up to annual shortfalls.
Some lawmakers believe raising taxes on American families will erase this funding gap. They seem to forget that revenue is only one side of the equation. Hiking taxes won’t curb lawmakers’ spending appetite. What’s more, the tax cuts I worked to see enacted during the last five years have resulted in more money flowing into the U.S. Treasury due to increased economic activity. So when the new Congress convenes in January, I’ll continue to serve as a voice for hard-working taxpayers if the new Democratic leadership takes aim at marginal tax rate increases and investment income.
As the 109th Congress draws to a close, a glimmer of good news brings a dose of good tidings for taxpayers this holiday season. The U.S. Justice Department reports a record $3.1 billion was recovered this year thanks to a legal tool I have advocated for the last two decades. This represents nearly a billion dollars more than any preceding 12-month recovery.
Back in 1986, I authored legislation that amended the Civil War-era False Claims Act. My whistleblower amendments empower private citizens to protect Uncle Sam from swindlers who fraudulently claim federal funds.
Through my legislation, whistleblowers are enlisted to help fight fraud against the federal government. Since passage of my qui tam amendments, the federal government has recouped $18 billion in settlements and judgments under the False Claim Act from those who sought to rip off U.S. taxpayers. Of the $3.1 billion recovered by the Justice Department in fiscal year 2006, whistleblowers were responsible for $1.3 billion. The remainder was recovered through suits initiated by the government.
Thanks to this tool, average citizens may shield from fraud their own hard-earned tax dollars which are used to fund federal programs, including Medicare, Medicaid, defense contract payments, disaster assistance and other benefits, agricultural subsidies, grants and loans.
Considering the remarkable success of my qui tam amendments at the federal level, I recently advanced a provision that will help put this anti-fraud tool to work at the state level. The provision creates an incentive for states to encourage whistleblowers to step forward with information that may help recover tax dollars lost to fraud.
The U.S. Justice Department refers to the False Claims Act as the federal government’s primary weapon to fight fraud against the government.
My qui tam amendments allow private citizens to file suit on behalf of the United States against those who falsely or fraudulently claim federal payments. Individuals who knowingly submit false claims are liable for three times the government’s loss plus civil penalties.
Recoveries in health care fraud, primarily in the vast Medicare and Medicaid programs, last year overwhelmingly led the way, accounting for 72 percent of the restored funds. Defense procurement fraud accounted for 20 percent of the $3.1 billion recovered under the False Claims Act.
It’s regrettable the federal government is seen as a cash cow to be bilked by wrongdoers. Just as President Abraham Lincoln took aim at war profiteers during the Civil War by signing the False Claims Act into law, I’ll continue to serve as a watchdog on Capitol Hill to ensure this tremendously adept tool remains available and relevant to assist in the fight against fraud in the 21st century.