Taxpayer Cash Sent To Thousands Of Tax Cheats Thanks To Tester, Obama
A new non-partisan government report revealed today that – in addition to its failure to create jobs while helping drive our national debt past $14.3 trillion – President Obama and U.S. Senator Bob Casey’s (D-PA) failed $787 billion stimulus handed billions of taxpayer dollars to tax cheats.
As the non-partisan Government Accountability Office (GAO) reported today:
At least 3,700 Recovery Act contract and grant recipients—including prime recipients, subrecipients, and vendors—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.
Meanwhile, the Associated Press reports that the problem could actually be even worse, noting: “[t]he report said the tax delinquents accounted for nearly 6 percent of the 63,000 contractors and grantees examined and cautioned that the real number might be higher because the known tax debt does not measure such factors as income underreporting.”
Notably, while Casey and the Obama Administration promised their $787 billion would create jobs and keep national unemployment below 8 percent, the United States has lost more than 1.8 million jobs since Casey helped his party bosses ram the spending bill into law, and national unemployment has remained above 8 percent for 27 consecutive months.
“This government report is yet another reminder of the waste, fraud and abuse of Pennsylvanians’ tax dollars thanks to Senator Casey and President Obama’s reckless spending in Washington,” said National Republican Senatorial Committee (NRSC) spokesman Chris Bond. “It’s bad enough that Casey and Obama’s $787 billion stimulus failed to create the jobs they promised while driving our national debt past $14.3 trillion – but to hand billions of taxpayer dollars to tax cheats is shockingly irresponsible.”
Background Information:
At Least 3,700 Tax Delinquent Stimulus Recipients Received Over $24 Billion In Funds. “At least 3,700 Recovery Act contract and grant recipients—including prime recipients, subrecipients, and vendors—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.” (“Thousands Of Recovery Act Contract And Grant Recipients Owe Hundreds Of Millions In Federal Taxes,” Government Accountability Office, April 2011)
· “The Real Number Might Be Higher.” “The report said the tax delinquents accounted for nearly 6 percent of the 63,000 contractors and grantees examined and cautioned that the real number might be higher because the known tax debt does not measure such factors as income underreporting.” (Jim Abrams, “Tax Cheats Among Recipients Of Stimulus Money,” The Associated Press, 5/23/11)
The GAO Audit Found That In Some Cases The Recipients Were Engaged In “Abusive Or Criminal Activity Related To The Federal Tax System.” “For the 15 cases of Recovery Act recipients with outstanding tax debt that we selected for a detailed audit and investigation, we found abusive or potential criminal activity related to the federal tax system.” (“Thousands Of Recovery Act Contract And Grant Recipients Owe Hundreds Of Millions In Federal Taxes,” Government Accountability Office, April 2011)
“35 Percent Of The Unpaid Taxes Were For Debts Incurred Prior To 2003.” “The report noted that about 35 percent of the unpaid taxes were for debts incurred prior to 2003 and that more than half of the apparent violations, $417 million, were from unpaid corporate taxes. Another quarter, $207 million, came from unpaid payroll taxes.” (Jim Abrams, “Tax Cheats Among Recipients Of Stimulus Money,” The Associated Press, 5/23/11)
One Recipient Owed $9 Million In Back Taxes “Mainly In Unpaid Payroll Taxes From The Mid-2000s.” “The most serious documented case was a security firm that owed $9 million, mainly in unpaid payroll taxes from the mid-2000s. IRS records indicated that the company paid other creditors while shirking its tax obligations. The company, which received more than $100,000 in stimulus money, had a history of being uncooperative, missing deadlines and repeatedly filing appeals, according to the records.” (Jim Abrams, “Tax Cheats Among Recipients Of Stimulus Money,” The Associated Press, 5/23/11)
THE DEMOCRATS’ $787 BILLION STIMULUS FAILED TO CREATE PROMISED JOBS
PROMISE: President Obama’s Economic Advisors Christina Romer And Jared Bernstein Predicted Unemployment Would Not Rise Above 8 Percent If The Stimulus Was Passed. (Christina Romer and Jared Bernstein, “The Job Impact Of The American Recovery And Reinvestment Plan,”1/9/09)
FACT: The Unemployment Rate Is 9.0 Percent And Has Remained Above 8 Percent For 27 Straight Months. (U.S. Bureau of Labor Statistics, www.bls.gov, Accessed 5/24/11)
Since The Stimulus Was Passed, The United States Has Lost 1.8 Million Jobs. (Bureau Of Labor Statistics, BLS.gov, Accessed 5/24/11)
