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312K federal contractors owe $3.5B in back taxes

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    Lawmakers seek legislation to address problem

  • Duration 3:59
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You lawmakers are going after federal contractors who avoided paying their own taxes despite getting paid with your tax dollars thing about that.

According to new IRS report.

3121000.

Employees.

Of the federal government owe back taxes in fact they 03 and a half billion.

Dollars when you put it out together.

In back taxes can you believe that.

Joined now by California Democrat congresswoman Jackie spears -- one of the lawmakers.

Who has that been spearheading our kids are in the final this legislation good to have you with us -- welcome -- Thank you.

So let's get this straight federal employees own a combined 3.5 billion in back taxes I anyone arrested -- doing you know silly us paying our taxes right.

Well here's the real issue about.

With the federal employees.

They can have their wages garnished up to 15%.

In in the regular civilian force.

It can only be -- up to 10%.

And actually.

The default rate for the of the lack of payment come on federal employees is less than general population.

The bigger problem are the federal contractors.

Who are receiving five billion dollars in tax dollars in federal contracts.

Even though.

They -- -- income tax and aren't paying it and we have no way of -- seeing.

Their wages so this particular bill and I'm joined with -- congressman -- -- -- Republican.

On the committee and together we have introduces bill that focuses in on the federal contractors.

Who right now.

We do not have any ability to prevent them from getting additional contracts so this would prevent.

Companies that are paying their federal gas tax and I don't -- your head and I getting additional federal contract.

I hearing in an area focuses is on -- -- this part of a -- one of the things that surprised me.

Was that there is all there are already federal acquisition rules that forbid contractors from getting these these jobs if they have delinquent tax debt.

And then President Obama back in 2010 ordered the IRS to crack down on just these kinds of instances.

Contractors getting deals when they owed back taxes so every once again in Beijing to shake your head -- so -- rules on the books why isn't so hard to enforce the rules that are already there.

So I'm part is the fine print because the various agencies can create a waiver.

For contractors they wanna use and -- this bill will require that they got to come to congress for the waiver.

Instead of the department and that I believe -- change things dramatically.

You know I mean that I think one of the main reasons that people are upset about the other the bigger number that three and a half billion dollar number is that you know -- like those of us in in that.

Best of the population.

Federal employees are paid for by tax dollars so everybody -- -- -- their tax dollars and then the folks that are being supported by those tax dollars and their salaries are not acted the same thing.

The -- -- the points we actually can garnish their wages do garnish wages.

And we -- -- mission to the tune of 15%.

Whereas other companies that they were garnish the wages of their employees can only -- them to the tune of 10% -- the federal contractors that we have.

They'll hook it with the federal contractors that continued to get these contracts don't pay their past income taxes.

And those are the ones that I think should be our very first priority we have an area for the other federal.

In the -- so obviously wanna you know sort of shed some light into this dark corner and make sure that this doesn't happen again.

You made -- a great point a moment ago which is that some of these agencies wanted to find out a good way to allow these contractors to basically get away with that.

Yeah -- crackdown on agencies themselves to make sure that they that they can't get away with that.

It is well.

Yes that's exactly right through this the other -- from the congress that they want -- waiver.

Congresswoman thank you very much good luck with everything outlook thanks good to -- you --

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