By Jonathan Blakely

Jan 20, 2010 12:12pm

Obama Calls out Contractor “Tax Cheats”

From Sunleen Miller: Calling out “deadbeat companies” that are being awarded government contracts while delinquent in their taxes, President Obama today signed a presidential memorandum to stop these companies from collecting government contracts while they are “gaming the system.” “In a time of great need, when our families and our nation are finding it necessary to tighten our belts, and be more responsible with how we spend our money, we can’t afford to waste taxpayer dollars,” Obama said from the Eisenhower Executive Office Building this morning, “And we especially can’t afford to let companies game the system. We need to make sure every tax dollar we spend is going to address our nation’s urgent needs and to make a difference in the lives of our people. ” The President said that the total amount owned in unpaid taxes by companies is estimated at more than $5 billion.  Allowing this, he said, is not only inefficient and wasteful but it’s “simply wrong,” for companies to take taxpayer dollars and not be taxpayers themselves. “By issuing this directive, all of us in Washington will be required to be more responsible stewards of your tax dollars,” the president said, “All across this country, there are people who meet their obligations each and every day. You do your jobs. You support your families. You pay the taxes you owe – because it’s a fundamental responsibility of citizenship.” The memorandum signed today directs the OMB, Treasury and other federal agencies to take steps to block these companies from receiving new government contracts. It also directs the IRS to conduct a review of the overall accuracy of companies claims about their tax delinquencies. “We need to be sure that when a company says it’s paying taxes, that company is, in fact, paying taxes,” Obama said. The president said this would be included in this year budget – and called on Congress to act legislatively as well.

User Comments

I wonder why he is not calling out Charlie Rangle for tax cheating ways while trying to enforce tax laws and racking in a nice pay check courtsey of the tax payers.
Better yet, for “trying” to incorporate a penalty in the form of taxes if one does not carry health insurance.
Oh the double standards of this Congress and Administrations is truly OUTFRIGGINSTANDING!!!

Posted by: UnPoliticallyCorrect | January 20, 2010, 11:44 am 11:44 am

Was he refering to his Cabinet? or his Union Buddies? Or GE?

Posted by: another crisis, another photo-op | January 20, 2010, 11:48 am 11:48 am

That’s priceless coming from
Mr. Acorn himself.

Posted by: Michelle | January 20, 2010, 11:50 am 11:50 am

TRANSLATION:
Miserable Subjects of the State, listen up!
Look where I point for today’s lesson in terrible Eeevil: tax cheating companies who dare to “game the system” without my approval are keeping us from getting a whole Five Billion Dollars!!!!!
mmm, wait! No. Don’t look over HERE at how many hundreds of billions we’re pimping into our friends’ pockets. Pay NO attention to how my handlers are gaming the constitution and the American people to chain them in perpetuity to an All-Powerful-State.
Five billion dollars! Over There! Look over there!
—-
Your mojo is just not working any more, Mr. President. We SEE you.

Posted by: Carol | January 20, 2010, 12:11 pm 12:11 pm

This isn’t a big deal. An obvious and excellent change in policy, but like banning texting by government employees while driving doing something this obvious is just a standard, non-partisan part of the President’s job.
Although I’m sure the Right wing nutters will find some reason to freak out about it.

Posted by: jhw539 | January 20, 2010, 12:14 pm 12:14 pm

This needs to be investigated – Have Charlie Rangel chair a special hearing. Actually he could be the subject of the special hearing. What happended to the House Ethics Committee. And they wonder why they lost in Mass.?

Posted by: jamescbuilder | January 20, 2010, 12:17 pm 12:17 pm

Hypocrit.

Posted by: Jenny | January 20, 2010, 12:26 pm 12:26 pm

Sorry POTUS, you’ve lost any credibility when you took over GM. Your motives will forever be in question. Start with Charlie Rangel so we know that you are serious.

Posted by: Walsh | January 20, 2010, 12:27 pm 12:27 pm

So what does he call the people he
nominated and Rangel who seems to
be immune from the same tax code everyone has to live up too ? What
a damn hypocrite this guy is. Does
he not think before he opens his
mouth or does he just read the
script?? Stupid.

Posted by: wis134 | January 20, 2010, 12:33 pm 12:33 pm

“By issuing this directive, all of us in Washington will be required to be more responsible stewards of your tax dollars,” the president said.
Hysterical.

Posted by: $ Bgas | January 20, 2010, 12:36 pm 12:36 pm

Calling out “deadbeat companies” that are being awarded government contracts while delinquent in their taxes, President Obama today signed a presidential memorandum to stop these companies from collecting government contracts while they are “gaming the system.”
HOW ABOUT DEADBEAT PEOPLE THAT BECOME CABINET APPOINTEES WHILE DELINQUENT IN THEIR TAXES?

Posted by: Steve | January 20, 2010, 12:36 pm 12:36 pm

Although I’m sure the Right wing nutters will find some reason to freak out about it.
Posted by: jhw539 | Jan 20, 2010 12:14:06 PM
———–
C’mon jhw539, even you must see the utter hypocrisy in this pronouncement.
Big business tax cheat = bad.
Cabinet member tax cheat = honest mistake.
As a famous President once said, “That dog won’t hunt.”

Posted by: Woody | January 20, 2010, 12:40 pm 12:40 pm

C’mon jhw539, even you must see the utter hypocrisy in this pronouncement.
Big business tax cheat = bad.
Cabinet member tax cheat = honest mistake.
Woody | Jan 20, 2010 12:40:00 PM
That analogy is absurd. ANY big business that pays up what it owes in full is back in business with the governement. EXACTLY LIKE every Obama cabinet member has paid up in full what they owe (even the few who had issues). There is NO hypocrisy, the hypocrisy would be if big business was not required to pay up and get fully legal like all of Obama’s Cabinet members were.
Is critical thinking on the Right so poor you honestly don’t see this fundamental error in your analogy?

Posted by: jhw539 | January 20, 2010, 12:55 pm 12:55 pm

Will you please ask Gibby at the
daily update today what they call
people in government who run from
their tax obligations. He will do
his usual dance before giving a
snarky answer. It would be fun to
watch. Come on Jake, you can do it.

Posted by: wis134 | January 20, 2010, 12:56 pm 12:56 pm

No shout-outs for Rangel and Tim Geithner?
Someone please tell Obama that his supporters are the only ones buying his BS.
And they will never know the truth because they listen to the Obama Media networks.
Uninformed–just the way Obama likes his supporters.

Posted by: ollie | January 20, 2010, 12:57 pm 12:57 pm

Unbelievable hypocrisy.
Simply unbelievable.
Please tell me this is just a bad dream.
How can anyone still believe Barack Obama?

Posted by: kandy | January 20, 2010, 12:59 pm 12:59 pm

Obama please resign and get psychological help.

Posted by: fran | January 20, 2010, 1:01 pm 1:01 pm

There is NO hypocrisy, the hypocrisy would be if big business was not required to pay up and get fully legal like all of Obama’s Cabinet members were.
Is critical thinking on the Right so poor you honestly don’t see this fundamental error in your analogy?
Posted by: jhw539 | Jan 20, 2010 12:55:49 PM
======================================
JHW, then maybe you can explain away Charlie Rangle and his extensive amount of back taxes that he has not only refused to pay, that he is not only using tax payers dollars to fight to pay, but that he has the AUDACITY to try an enforce penalities in the form of taxes via the latest version of the health care bill should you not have health insurance.
Couple this with the fact that the believes people making over $X should pay more in taxes while he evades paying his taxes is HYPOCRISY at its finest!

Posted by: UnPoliticallyCorrect | January 20, 2010, 1:04 pm 1:04 pm

This is just more posturing from Obama.
He feigns anger, says a bunch of crap, then makes sure that any law that is written has loop holes galore in it, so his buddies can worm their way through them.
Obama no longer has credibility with most Americans, he lost that when he faked anger about the AIG bonuses.
Obama needs to man up, grow a pair and do what he promised and if he can’t, then we have no problem firing him when his term is up.
ABC, where is the story of the Copenhagen Junket?

Posted by: abc is going down the tubes | January 20, 2010, 1:05 pm 1:05 pm

Just living up to his promise to have an “era of responsibility”.
Similar to Pelosi’s promise to “drain the swamp” and have the most ethical Congress EVER!!!
Too friggin funny.

Posted by: hank | January 20, 2010, 1:08 pm 1:08 pm

JHW, then maybe you can explain away Charlie Rangle and his extensive amount of back taxes that he has not only refused to pay,
UnPoliticallyCorrect | Jan 20, 2010 1:04:46 PM
? When did Rangle become a cabinet member – what the initial poster was explicitly referring to? Or is your post a sarcastic extension of my critical thinking jibe by pretending to be a Republican with humorously poor English comprehension skills?
As for Rangle, I would guess that he’s going to pay up his back taxes – just like Obama is now requiring these businesses to do. Not very hard, and certainly not hypocritical of the administration (who has clearly taken a much harder line with its members than Congress if Rangle still has unpaid back taxes).
This is a good, common sense policy Obama is putting in place. I have no doubt McCain would have done the same thing. I really don’t see partisan points to be scored pro or con on basic stuff like this (other than perhaps chuckling at how far off in a fantasy land the rabid Obama haters are).

Posted by: jhw539 | January 20, 2010, 1:13 pm 1:13 pm

Maybe union contractors will be exempt. Unions are exempt from the health tax, right?

Posted by: jamescbuilder | January 20, 2010, 1:15 pm 1:15 pm

Unions are exempt from the health tax, right?
jamescbuilder | Jan 20, 2010 1:15:20 PM
Nope. They just got a bit longer phase in period. They have a contract cycle or two to get ready, but they’re still targeted to carry the brunt of the health insurance reform tax.

Posted by: jhw539 | January 20, 2010, 1:17 pm 1:17 pm

jwh:”That analogy is absurd. ANY big business that pays up what it owes in full is back in business with the governement. EXACTLY LIKE every Obama cabinet member has paid up in full what they owe (even the few who had issues). There is NO hypocrisy, …”
OK, thanks for answering my question. The blinders must be set to maximum power today.

Posted by: Woody | January 20, 2010, 1:53 pm 1:53 pm

“drain the swamp”
Posted by: hank
you do know that it was the republicans who got the biggest ‘earmarks’ recently

Posted by: Raw | January 20, 2010, 1:59 pm 1:59 pm

Unions are exempt from the health tax, right?
jamescbuilder
over the years,
union members made substantial wage give backs to keep better healthcare benefits

Posted by: W U do'nt know | January 20, 2010, 2:02 pm 2:02 pm

Um, when is Obama going to go after the bureaucrats and politicans who don’t pay THEIR damn taxes!!! I don’t think I will hold my breath on that one! (Mere citizens get imprisioned for accounting errors, and have their property auctioned for much less)
Between them and the corporations that don’t pay taxes, his agenda may in fact pay for itself.
But since they aren’t paying for it, WHY NOT throw more debt and cash on the fire. After all it isn’t their money. It’s taxpayers money! And if they run out they can print more of it. Woo-hoo!

Posted by: jafo | January 20, 2010, 2:38 pm 2:38 pm

Maybe they used Timmy G.’s accountant.. it’s not cheating.. for him.. it’s interpretation and overlooking stuff.. cuz your busy.. most contractors aren’t as busy as wall street banking overseers..

Posted by: DontGet818OnMeNow | January 20, 2010, 3:05 pm 3:05 pm

frankly, if more people/companies would not pay their taxes on time (or maybe at all) it might wake-up Washington that their spending, crony contracts, foreign wars&meddling, big brother laws, lobbyist ties, and federal aggrandisement of power is too much. We can thank these companies who, for their own benefit, are trying to cut off funds to this out of control Federal bureacracy and government. Obama seems to be just as bad as Bush, we need real “change” back to a Constitutional form of limited government. We can only get there when the Feds don’t have the unlimited funds to spread around in their schemes.

Posted by: Ed | January 20, 2010, 3:25 pm 3:25 pm

If the President would like a heads up on one particular Defense contractor that fits this scenario; I would be more than happy to supply documents. This contractor was purchased in 2008, with no questions asked, by an Italian Defense contractor for 5.2 billion.All top executives received tax free bonuses from the foreign contractor. They just flew under the radar with no questions asked by the SEC,DOJ, etc. What happened to are so called ITAR restrictions. This foreign contractor is in control of the US contractor’s C4I division,etc.
I’m sure they will say they are protected by a firewall,LOL.Also, this US company was doing some insider trading prior to the acqusition;which Is under investigation.This company has also violated anti – trust regulations, and I have those documents available too! They have already been fined by the US Government for false claims in the past. One would think our Government would check up on these companies who pay millions to lobbyist and special interest groups.We the taxpayer are working for their elaborate lifestyle. I have this company documented so well with third party information and can prove their corruption way beyond anyones belief.There are alot of big players involved who have used the average taxpayer for their own gain.If anyone, including President Obama, would like more info. on this defense contractor; please e-mail me.

Posted by: Karen | January 20, 2010, 3:27 pm 3:27 pm

Lip service from a lame duck president.

Posted by: phillip | January 20, 2010, 3:39 pm 3:39 pm

Excuse me, but how could any reporter who expects to be considered seriously write such an article without mentioning the repeated tax violators on this president’s staff? Please. No credibility for you, Ms. Miller. Hold the president accountable. Don’t embarrass yourself. Thanks.

Posted by: mickeymat | January 20, 2010, 5:19 pm 5:19 pm

Companies shouldn’t have to pay their taxes? The Republicans stand up for freedom.

Posted by: tierra | January 20, 2010, 5:27 pm 5:27 pm

Companies, like Treasury Secretaries, should pay their taxes on time. That said, his whining about $5bn is disingenuous. That is a mere fraction of the deficit – at this point another $5bn in the hole is meaningless. For those of you in Rio Linda, I’m not excusing the companies.

Posted by: ConservativeWoman | January 20, 2010, 5:43 pm 5:43 pm

Can we expect to see Obama, Reid, and Pelosi driving pickup trucks next week?

Posted by: TaxedRUs | January 20, 2010, 9:05 pm 9:05 pm

I don’t get any of this debate. If interest and penalties on past due tax are insufficient, Treasury should raise them. If payments are not made and those owing them are around, then seize and auction assets. If they have no assets then make them work it off with a reduced fee for contracts.

Posted by: John F | January 20, 2010, 10:25 pm 10:25 pm

Lets get this straight he is coming down on tax cheats yet he appoints a tax cheat to mind our money. He is a joke why isnt he going after Rangel for his fraud and the billions of dollars owed by federal employees. He still doesnt get it he goes after a specific group instead of everyone. the bottom linre is he is a liar and you cant trust a liar!

Posted by: Stanley | January 20, 2010, 10:45 pm 10:45 pm

In addition, I read this week where IRS will increase audits of businesses by 6,000 annually. Any one care to guess what size business is going to see an increase in audits. Bet it won’t be GM, IBM, or GE. Watch out small business, 1 to 10 employee size, you’re about to get it again from this administration.

Posted by: Ken | January 21, 2010, 9:54 am 9:54 am

One thing to realize is no company actually pays taxes, they all collect taxes from individuals and then pass them on to the government. Government raises taxes on a business they raise the price of their goods and services and then its the individuals who pay more for the goods and services. Only people pay taxes, your the people, so demanding business’s pay more taxes or even pay taxes at all is basically asking them to raise the cost of things you buy.
I do definately agree, Obama needs to clean up his own czars and those in the congress and senate that cheat on taxes before going after anyone else.

Posted by: kilnntime | January 21, 2010, 1:00 pm 1:00 pm

When I think of tax cheats, Tom Daschle, Tim Geitner, and Charlie Rangel, are the first that come to mind. Will President Obama be taking care of these three?

Posted by: Randall W. | January 21, 2010, 1:40 pm 1:40 pm

I’ve been working full-time for IBM for over 20 straight years, but never as a regular employee. And while, I’m lucky to still be working in this economy, it is very obvious they are taking advantage of the system. So, while my income shrinks every year with hundreds of hours of unpaid overtime, I’ve seen thousands of my co-workers replaced by over-seas employees that make $400 dollars a month. How can there be job security when even the biggest corporations are looking for short-term results? And, yes, I pay every penny of my taxes.

Posted by: OverWorked | February 21, 2010, 1:16 am 1:16 am

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