Your Money: Billions in Stimulus Funds Paid to Tax Delinquent Contractors
EmailABC News’ Devin Dwyer (@devindwyer) reports: The federal government awarded $24 billion in Recovery Act funds to contractors and vendors who owe millions in unpaid taxes, a new Government Accountability Office report has found.
The nonpartisan watchdog agency reported Tuesday that at least 3,700 recipients owed more than $750 million combined in unpaid federal taxes as of Sept. 30, 2009. They represent 5 percent of all recipients of the so-called stimulus funds.
“For many years now, we’ve known that a small percentage of federal contractors and grantees who get paid with taxpayer dollars shirk their responsibility to pay their taxes,” said Democratic Sen. Carl Levin of Michigan. “Now the executive branch should get on with it and actually debar the worst of the tax cheats from the contractor workforce.”
Levin, who chairs the Senate Permanent Investigations Committee, plans to hold a hearing on the report this afternoon.
“That such a huge amount of the stimulus money went to known tax cheats should be a wakeup call for Congress,” said Republican Sen. Tom Coburn of Oklahoma, the committee’s ranking member.
The GAO said their report likely underestimates the total amount of unpaid taxes owed by stimulus recipients. Federal law does not require government agencies to check the tax compliance of prospective grantees.
The report singled out 15 cases of “abusive or potentially criminal activity” for further investigation by the IRS.
One nonprofit health care organization reportedly owes $4 million in payroll taxes and has repeatedly submitted “dishonored checks” to the IRS to pay the bill. An unnamed security company, which received over $100,000 in Recovery Act funds and still owes more than $9 million in taxes, reportedly paid debts to other creditors but not the IRS and has repeatedly violated federal labor laws.
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Are they tax cheats or businesses in trouble financially? There is a world of difference.
Posted by: Lydia | May 24, 2011, 12:32 pm 12:32 pm
how ironic tim gietner oversees doling out stimulas funds to people who dont pay tax.whats new here 48% of you folks dont pay any tax. at least these contractors are actually working.
Posted by: catman | May 24, 2011, 12:44 pm 12:44 pm
The names of the firms and organizations should be released, as well as any political donations made by them. Wouldn’t that be interesting?
Posted by: jamescbuilder | May 24, 2011, 1:01 pm 1:01 pm
Lydia: WORKING?
I’ve been a civilian military contractor and saw what quailfies as “working”. It’s so much worse than you know.
Military contractors and liberal journalists – very different groups – share a common circumstance. There is no consequence for their total incompetence, or for being completely compromised by personal and political interests.
In fact, for them, it’s a plus.
Posted by: JERRYC | May 24, 2011, 1:19 pm 1:19 pm
Only private sector employees – subject to the rigors and dangers of competition, are both paying taxes and earning their keep. And once you subtract out the unemployed, and the SS recips taking five times more than they put in, and Medicare, and the sloth of federal employees, you’re left with less than half of the employable population. The weight on our shoulders is nearly unbearable. Atlas will eventually shrug.
Posted by: JERRYC | May 24, 2011, 1:22 pm 1:22 pm
This happens every time there is something like this. You would think by now we’d have some database to check or something. We could afford so many things if we could nip the fraud and cheating.
Posted by: MaeMobly | May 24, 2011, 1:24 pm 1:24 pm
IT IS TOO EARLY TO TELL. IT COULD BE A TRAP, OR STAGED SET UP BY DESPERATE ULTRA-RIGHTISTS WHO ARE TRYING TO CAST THE FEDERAL GOVERNMENT AS THE CULPRITS.
PROBABLY PAID LOBBYSTS SPREAD THE MISINFORMATION.
Posted by: Moderate American | May 24, 2011, 1:33 pm 1:33 pm
Just another case of government bureaucrats spending tax payers money wastefully. Really no surprise.
Posted by: free_2_choose | May 24, 2011, 1:51 pm 1:51 pm
Moderate:
Riiiiiiiight…
We know as fact, without any conspiratorial propaganda, that 80% of the ObamaCare waivers are being given to that faithful Democrat Party funding arm known as labor unions (and many of the others to Pelosi’s direct constituents.)
And we have to wonder whether the same White House is capable of deliberately handing out stimulus to tax cheats who support his ambitions?
You really have to play pretend to shut your eyes to this.
Posted by: JERRYC | May 24, 2011, 1:53 pm 1:53 pm
LOL LOL LOL LOL LOL LOL LOL LOL LOL
How about dem money grabbing, Tax evading, outsourcing scoundrels at GE
Obamas buddies
LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL
Posted by: The LOL'er | May 24, 2011, 2:32 pm 2:32 pm
Yea well a lot of people have been brought into our government by BO. Almost all of them appointed by the worst president in history owed taxes. Its a good thing we elected some decent, clean people in our government last election or it would be crawling with crooks
Posted by: succab | May 24, 2011, 3:10 pm 3:10 pm
This is just another travesty of cheats getting things their way.
Seniors have NOT had a raise in Social security and yet have had to pay all increase in housing, medication, food, gas etc…
This is the most crooked government of all times. Give to those who are able to work and are dysfunctional and those who have worked and paid into SS for years are snubbed! Is this America? It is not caring at all for the lives of Senior’s…Nice country!
Posted by: Nursy | May 24, 2011, 3:21 pm 3:21 pm
One of the local contractors appears to have made a mockery of the stimulus funds and basically created a shift in local traffic for about a mile with absolutely no construction or repair going on. At one end is the big sign saying it’s part of the reinvestment act. I live in a highly conservative area and the local government is almost 100% republican controlled. It’s nothing short of shameful.
Posted by: rightbehind | May 24, 2011, 3:23 pm 3:23 pm
Truly this is a “pick and choose” system we now work on in the USA…Reward those people who are total losers and take away from those who have paid by hard work and complete un-selfish acts.
“Oh no money, sure too busy giving it to illegals and welfare recipients who know every angle on how to bilk the system! Wake up people, Vote BHO out once and for all!
Posted by: Nursy | May 24, 2011, 3:25 pm 3:25 pm
Yep, the government, under Bush and Obama has been among the most corrupt in American history. Bring these guy down and restore honest govern-ment…and the end to these stupid wars, NAFTA, the Patriot Act, and the “Fed,” NOW!!!
And fight with all your might against the REPUBLICRATS!!!
Posted by: DrTCH | May 24, 2011, 3:27 pm 3:27 pm
Well what about all the Halaburtin no bid contracts during the gulf wars and on the backs of the victims of Hurricane Katrina.
Posted by: justsaying | May 24, 2011, 3:36 pm 3:36 pm
Incidentally, as our money is literally based on debt, the recent call to “balance the budget” is seriously misplaced (and either entirely ignorant of economic realities or evil-minded). To attempt to do this is literally impossible. There is not enough money in existence to pay down the National Debt.
To attempt this would be tantamount to another kick in the teeth of the average American (after the Wall Street/Bank bailout. Then, when, you consider that doing this would also seriously contract the money-supply, you can see thatthis would a third K.O. to Americans, who are already reeling.
JUST SAY NO!!!
Posted by: DrTCH | May 24, 2011, 3:37 pm 3:37 pm
Calling President Obama the worst president in American history after EIGHT YEARS of Bush 2 is hilarious !
Posted by: billwalker | May 24, 2011, 3:47 pm 3:47 pm
The WHOLE CONCEPT of the “stimulus” bill was to get $$$ to unions and Dem supporters… it was actually pretty amazing that the mainstream media has been able to keep any “problems” quiet this long!!!
Posted by: TheLoyalOpposition | May 24, 2011, 4:16 pm 4:16 pm
BILLWALKER — What IS amazing is that we know it after only TWO years with Obama!!!
Posted by: TheLoyalOpposition | May 24, 2011, 4:17 pm 4:17 pm
blame bush.it’s his fault
Posted by: nugy | May 24, 2011, 4:53 pm 4:53 pm
Where is Joe Biden when we need him? Wasn’t he in charge of supervising the entire Obama stash?
Posted by: charlie11 | May 24, 2011, 4:57 pm 4:57 pm
I’ll bet you will have to strain your eyes to find this story in tomorrow’s N.Y. Times.
Posted by: richard Toes | May 24, 2011, 4:59 pm 4:59 pm
We have an extremely wealthy tax cheat heading up the Treasury Department.
Posted by: Lilly | May 24, 2011, 5:06 pm 5:06 pm
“What IS amazing is that we know it after only TWO years with Obama!!!”
And some of us have known it for more than two years. JImmy Carter thanks God every day for sending BO to Earth.
Posted by: Floyd Bridges | May 24, 2011, 5:06 pm 5:06 pm
It’s funny seeing the liberal comments here. They deflect from the original subject, which is that the stimulus has been wasted from the get-go. It’s going to foreign banks, tax evaders and crooks. If it had been given to the American “tax-PAYERS” directly they could’ve used it to pay down debt, buy cars, buy houses, etc. The money would’ve found it’s way back to the banks and struggling manufacturers. Doling it out the way they did it gives them complete control over who gets their payoff.
Nearly a trillion dollars flushed down the toilet. Thanks, Obama for destroying a once-great country!
Posted by: czervik | May 24, 2011, 5:10 pm 5:10 pm
Exxon didn’t pay any tax, GE neither. What’s the big deal? At least they are paying SOMEHTING,albeit late.
Posted by: mauibucky | May 24, 2011, 5:13 pm 5:13 pm
MOST-CORRUPT-GOVERNMENT-EVER!
Posted by: Creed | May 24, 2011, 5:19 pm 5:19 pm
It must of happened under the Bush administration !
Posted by: sowhat? | May 24, 2011, 5:27 pm 5:27 pm
I just hope… when the time comes… that they divulge the names of these firms… I want to see WHICH crooks were being paid by the Democrats!!
Posted by: TheLoyalOpposition | May 24, 2011, 5:27 pm 5:27 pm
Biden boasts about curbs on stimulus fraud, abuse.
“Remember what critics were saying in the beginning? Go back and Google it. They said there’s no way this can be done without massive fraud,” Biden said. “I stand before you today to say firmly, our critics were wrong because of you.” – Joe Biden 11/17/2010
Googled 05-24-2008 … oops! 05-24-2011
Posted by: Robx | May 24, 2011, 5:38 pm 5:38 pm
After all that we know about Obama’s gross missmanegment of the government, I bet there’s nothing that’ll deter Democrats from doubling down and voting for Obama again……unless he becomes a Republican, but we don’t want him.
Posted by: JustAGuy | May 24, 2011, 5:43 pm 5:43 pm
Is anybody really surprised here? This administration has flipped off all the hard working people in this country who do pay taxes. He makes no bones about wanting to level the playing field by taking from all of us hard workers and give to those who do not work and do not want to work. It is amazing to me that ABC is even running this story, they and the rest of the lame stream media have covered for this administration for so long it is sickening. How in the hell do we have a tax cheat in the office of treasury secretary?
Posted by: jane davis | May 24, 2011, 6:26 pm 6:26 pm
And who are these companies? Are the linked to the Democratic Party. How about ACORN, Union PAC’s, and advocacy dot. orgs. Why didn’t ABC provide this list?
That would be journalism. This is just an attempt to continue the anti-corporation mantra of the left.
Posted by: Pat Kean | May 24, 2011, 6:42 pm 6:42 pm
“Your Money: …” Let’s get something straight, it is not my money. It is money either printed up out of thin air with the promise of future (without present representation) generations to pay the bill, OR it is money confiscated from me under threat of violence.
If it were My Money, this fraud would not be possible.
Posted by: American Sharecropper | May 24, 2011, 6:47 pm 6:47 pm
All the guys he’s got working in his administration are either ex-Goldman, ex-Citi, ex-New York Fed (the regulators in charge who sat back and watched as the credit crisis exploded), or for Christ’s sake, GE. I’m suprised they didn’t get anyone from WAMU. Why not? The head of the Treasury didn’t even manage to pay his taxes. Am I painting a picture here, because, if not, I could go on..
Posted by: zinger | May 24, 2011, 7:04 pm 7:04 pm
If you want more winners, reinvest in your winners.
If you want more losers, reinvest in losers.
That goes for stocks, students and countries.
Posted by: Angry Voter | May 24, 2011, 7:09 pm 7:09 pm
DRTCH
The stimulus money was completely controlled by the Administration and congress. The money went to whom they decided to give it to. i.e. demarcate supporters. While the Repups have their own faults over the last decade to live down, this miss is owned by the demarcates.
Posted by: who cares | May 24, 2011, 7:43 pm 7:43 pm
This is all getting to be too much to take. Wanna bet WWIII gets underway within the next year or two? We have nothing but chaos at the top, which means the entire American society will soon be rotting from top to bottom and inside out. WWIII will be the only solution our insane and deluded decision makers can come up with.
Posted by: Alan P. Jones | May 24, 2011, 8:50 pm 8:50 pm
The claim sounds like a lot balogna. The U.S. Treasury actually offsets past due taxes from contract payments just as the Treasury would do for any other business that is recieving a Treasury payment for, say, a tax refund. If the government has a contractor that has a tax delinquency the matter is handled by the IRS in the same manner as it would be handled for any other business. Since lots of businesses and people are delinquent paying taxes no one should be surprised that some contractors are as well.
Posted by: Sam | May 24, 2011, 9:33 pm 9:33 pm
Can you imaging the unending press coverage if a repub. corporation…lets say Halibertin…was receiving millions in taxpayer stimulus money and they owed hundreds of thousands of dollars in back taxes. I’m sure it would have been traced back to Cheney, LOL. I say more transparency!! Lets see a list of the corporation or companies that benefited from the stimulus. How many are dem vs. republican contributors? the tax payers are screwed again by corporate deadbeats.
Posted by: ron | May 24, 2011, 9:37 pm 9:37 pm
Oh, Haliburton no bid contracts under bush…dorks, Haliburton was awarded no bid contracts under Clinton also. You illiterate idiot pigs…….
Posted by: Caroline | May 24, 2011, 9:38 pm 9:38 pm
BTW, they were awarded no bids because they were the only company capable of carrying out the task or mission.
Posted by: ron | May 24, 2011, 9:43 pm 9:43 pm
No kidding? Stimulus money used for government employees and for those that don’t pay taxes? Why is anyone surprised? However, if you are a Private-sector, middle-class taxpayer, look behind you. You have a target on your back. B.O. and the demos are VERY aware that they have soaked the rich, and they are coming for YOU. Food Stamp Prez is too good of a label for this “traveling Prez and Chubaka”.
Posted by: meesha4 | May 24, 2011, 10:04 pm 10:04 pm
I thought all this big govt regulation the democrats like so well would stop these tax cheats from being eligible for any kind of govt money. Who vets these characters or how is this problem being squelched. Levin didn’t offer a solution which is typical for a Senator that needs to be retired. These problems should get someone excited enough to work on a fix.
Posted by: howe | May 29, 2011, 9:27 pm 9:27 pm