Congressman Bruce Braley backs legislation that would keep government business from going to tax cheats. Braley says it’s timely, as today millions of Americans are finishing up their income tax returns to file by tomorrow’s deadline.
“Nobody likes to pay taxes, but the vast majority of American families and companies obey the law and comply with their responsibilities as citizens and taxpayers. Unfortunately, some people do not follow the law and have serious delinquencies in paying taxes to the I.R.S.,” Braley says. “What is shocking to me and honest taxpayers across the country is that many companies that didn’t pay their taxes were benefiting from federal government contracts.”
According to the General Accounting Office, over 50,000 federal government contractors owe $8 billion in unpaid federal taxes. If President Bush signs the bill into law, companies with seriously delinquent tax debts will not be eligible for federal contracts. “It will reward responsible, taxpaying contractors with more opportunities to continue serving the federal government for abiding by the law and it should increase collections because companies will get current on their tax bills if they want to continue receiving federal contracts,” Braley says.
Braley, a Democrat from Waterloo, is a member of the House Oversight Committee, which endorsed the bill. “With a mounting federal budget deficit and rising obligations, the federal government cannot afford to leave billions of dollars in tax revenue uncollected,” Braley says.
The House approved the legislation this afternoon.