Remember when Biden uttered those words, The Stimulus has worked beyond my wildest dreams? Few in the media called him on it (but that’s our media for you). The latest Stimulus failure (in a long list of Stimulus failures) is the billions going to tax cheats. It pays apparently to be a tax cheat as long as you’re a federal contractor!
When the government gave out contracts with the Recovery Act (Stimulus) dollars, the government bureaucrats in charge idn’t check to see if the bidding contractors owed taxes. Well, they say, there is no law against it (what happened to common sense?) It should come as no surprise that 5% of the contractors turned out to be tax cheats. That 5% received over 24 billion from the Stimulus. Amazing it wasn’t worse – pure luck.
The GAO released a report today summarizing the extent of the problem-
Thousands of Recovery Act contract and grant recipients owe hundreds of millions in federal taxes: At least 3,700 Recovery Act contract and grant recipients are estimated to owe more than $750 million in known unpaid federal taxes as of September 30, 2009, and received over $24 billion in Recovery Act funds.
Examples of Recovery Act recipients with unpaid federal taxes engaged in abusive or potentially criminal activity were presented and included employers not submitting payroll taxes to the IRS. Read the report here: GAO report