Thursday, May 26, 2011

Obama Hands Out 4 Billion to Tax Cheats, May 26 2011

Fred Lucas
CNS News
Lawmakers from both parties are calling for a fix to prevent tax cheating companies from getting federal contracts in light of a government investigation that found $24 billion in stimulus act funds went to companies owing $757 million in unpaid taxes.

“Average Americans are likely wondering why we gave such a huge amount of federal money to tax cheats when our national debt is more than $14 trillion,” Sen. Tom Coburn (R-Okla.) said in a statement. “That $24 billion went to such people looks like we are rewarding people for potentially criminal behavior.”

The report by the Government Accountability Office on money from the $800 billion American Recovery and Reinvestment Act going to tax delinquent firms did not name any specific companies, but it gave general examples of firms with delinquent taxes receiving tax dollars.

One example was a construction company that owed $700,000 in back taxes getting $1 million in stimulus contracts. In another example, a security firm with $9 million in unpaid taxes got $100,000 in stimulus funds.

A technical services company got $100,000 in stimulus funds despite owing $4 million in taxes, was also found to own $4 million in real estate and earned hundreds of thousands of dollars in adjusted gross income in a recent tax return.

Full article here

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