Did Tax Cheats Cash In on Stimulus?
Sen. Charles Grassley weighs in
- Duration 3:15
- Date May 25, 2011
Sen. Charles Grassley weighs in
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Where did all that stimulus money go remember all those signs and stuff like that well a new report shows -- nearly 4000 government contractors.
And nonprofit organizations received more than 24 billion dollars of that stimulus cash.
But get this those companies and organizations -- nearly in 800 million dollars.
In federal back taxes.
So how do tax delinquents get government money.
The supposed to work that way.
Republican senator Charles Grassley its ranking member of the Judiciary Committee and is one of five senators requesting your reporting joins us live from DC -- -- senator.
You're good morning there what happened.
Well I think it's a case of that the president being sworn -- end.
One month later they have to appropriate 814.
Billion dollars to keep unemployment under 8% of course that didn't work and then they want to -- the money out the door sold fast.
That they didn't check and there ought to be a check them between people that are getting our government contract because you know it's pretty prestigious to -- a government contract.
And whether or not they pay their taxes and you ought to be able to do that in the computer age where you can compare who's getting government contracts.
With the whether or not they pay their taxes but you you reported the right figures can you imagine out -- 60000 corporations.
About 4000 album didn't pay about three quarters of -- million dollars or against 800 million as what you said very accurately.
Didn't pay income taxes and and it's just -- -- for people that are honestly paying their income taxes that there are other people were.
Well it it would seem to me senator that that should have been a requirement to get the money.
Hey you want we've got a ton a stimulus though if you want it pay up all your taxes and then they could go forward.
But I understand something like a third of these organizations.
Owed back taxes as far back as 2003 so these were long time tax delinquents.
All without a doubt and and that there ought to be -- a list of people that are not.
Paying their taxes.
That want government contracts.
Or ought to be a requirement if you're going to you again government contract.
To assign -- -- that you paid all your -- -- that'd be that simple sure.
Going forward and these are gonna be some mom.
Tighter legal language to make sure we would all hope that if you -- taxes you're not gonna get more money from the federal government.
Yeah I think there one way that we -- do this is when you're looking for offset money when you want our -- Texas someplace else or spend money someplace and you got offset it.
This would be a source -- revenue.
That we can raise by putting a requirement in that if -- contracting with the federal government and you haven't paid your taxes right you don't get it.
And that would cause people pay their taxes and bring this revenue in on time.
Makes sense to me.
All right let's do it happens senator Chuck Grassley from the great state of my first Iowa thank you senator for joining us live today.