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  • More Careless Government Spending: Billions Delivered to Contractors that Didn’t Pay Taxes

    President Obama has some explaining to do. The Government Accountability Office (GAO) yesterday revealed that 3,700 federal contractors — who were recipients of $24 billion dollars in stimulus funds — are tax evaders.

    In total, they owed the government at least $757 million dollars – probably more since the IRS databases don’t include those who didn’t file taxes or haven’t yet been assessed. And it goes even further than that. The Washington Times reports:

    The government investigators took a closer look at 15 stimulus recipients whose histories raised red flags. The 15 were responsible for $40 million in unpaid taxes, and had all engaged in potentially criminal activities, including withholding payroll taxes from employees but never sending the money to the IRS.

    Senator Tom Coburn (R-OK), who was one of several Members of Congress to request the report, said, “That $24 billion went to such people looks like we are rewarding people for potentially criminal behavior.”

    America is clearly lacking critical oversight when it comes to the huge dollar amounts being spent. When many Americans are struggling to make ends meet, misspent multi-billions just isn’t acceptable.

    The 2009 stimulus package was a great sell for President Obama. It was full of hope for recovery and rife with the promise of jobs, jobs, jobs. What a disappointment the nearly $800 billion legislation has been for American workers and the economy as a whole.

    The funding glamorized government overspending as a method for economic recovery while plunging us into a record $14.3 trillion dollars of debt – with nearly half of that being owed to foreign countries. Last year, the unemployment rate reached 10% and it remains around 9% today.

    Heritage’s Brian Reidl found that in 2011, Washington will spend $32,137 per household — the highest level in American history (adjusted for inflation). Each household will have a $13,841 deficit, which will be tacked on to the bill delivered to America’s grandchildren.

    As Reidl writes, “Taxpayers – and the next generation that will be paying nearly half of the bill – must decide for themselves if they’re getting their money’s worth.”

    Another GAO study earlier this year discovered at least $100 billion dollars being wasted on government spending for duplicative federal programs. With all these billions being doled out so carelessly, it’s no wonder Americans have trouble trusting big government to use their money wisely.

    After this report was released in March, Senator Tom Coburn (R-OK) said:

    This report confirms what most Americans assume about their government. We are spending trillions of dollars every year and nobody knows what we are doing. The executive branch doesn’t know. The congressional branch doesn’t know. Nobody knows.

    Sounds like things haven’t changed much since then. One can only wonder what the GAO will report next.

    Posted in Ongoing Priorities [slideshow_deploy]

    9 Responses to More Careless Government Spending: Billions Delivered to Contractors that Didn’t Pay Taxes

    1. Jason, Minnesota says:

      This is more typical than you think,and happens during ALL administrations. When I was a Marine, we knew all about contractors and money bungles. That was in the '80s. I guess the Government will always spend like it grows on trees, because to them,it does. UNTIL…taxpayers like us,start to get more agressive!

    2. Bobbie says:

      Evident that the best run country is a limited government run country where job integrity is seen. The big big bigger the government the more planned corruption, the more government controlled intentions are hidden, the more suspicious government runners look and the more untrustworthy they are..

      America doesn''t deserve this conduct at any level of incompetence when it is in government at our expense not within our control or our ability to correct! ACCOUNTABILITY AND PAY BACK WITH INTEREST, JAIL TIME, (prisons are full!).

    3. Stirling, Pennsylvan says:

      The problem with pointing out the ammount of money the government wastes is that less then 50% of Citizens actually pay federal taxes. So the "average" american doesn't even shoulder the burden of wasteful spending (thus doesn't care unless they loose their "free lunch."). This "Welfare Generation" gets more money from the government then it has to pay, and thus will never feel the pain personally. (with the exception of food, and energy prices.). I do agree at some point the future generations will eventually not be able to "kick the can down the road," but only once this country goes bankrupt.

    4. Rod says:

      When many Americans are struggling to make ends meet, misspent multi-billions just isn’t acceptable.<<<

      Or when they are not struggling, for God`s sake.

    5. Barbara Welch says:

      I agree with Rod. We need much less big government, also, as big government costs too much and doesn't follow through on projects. Why should they, it's not their money

    6. Bud, Memphis TN says:

      When I write a check for more than my account has, it could become a felony and I could go to jail. When Washington spends more than they have, they just call it deficit spending and keep on going. This "Business As Usual" needs to stop.

    7. Paulc says:

      Gentlemen fasten your seat belts.

      This is all on PURPOSE.

      Lesson one How to defeat America? Financially

      Lesson Two: Infiltrate Presidency–

      Lesson Three: Attack Constitution by declaring issues unconstitutional errors and ignoring enforcement i.e. DOMA & Congressional approval of Libya invasion.

      Lesson Four: allege racism and demonize opponents by media.

      On PURPOSE!

    8. George Colgrove, VA says:

      This is called Croney Capitalism. Most of these contractors were defense contractors according toa news report yesterday. Just for defense contractors alone, the federal government will be paying out over $400 billion. The delinquent tax bill for all contractors and organizatons was under a trillion and to top that they got stimulus money to boot!

      This is showing what the federal government has become. A money launderer for Defense contractors – if you are a neocon RINO or labor unions if you are a liberal. These parties do not represent the Anmerican citizen who is funding this today and decades to come.

    9. JOE MASTRIANO CPA says:

      Do you have payroll tax issues?

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