Thursday, June 16, 2005

Taking Your Tax Dollars -- But Skipping Their Tax Payments

Federal contractors -- making big bucks off taxpayers -- owe billions in unpaid taxes. The Government Accountability Office found 33,000 contractors behind on $3.3 billion in taxes.

The GAO had a similar report last year where they found 27,000 defense contractors owed $3 billion in unpaid taxes. The new report looks at all government contractors.

A new law took effect last year that lets the government hold up 100% of the payments to contractors until their taxes are paid. But the GAO says agencies don't take advantage of it enough. (USAToday)

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