It’s an epidemic, and it’s no accident — it is intentional. Many cheating contractors pad their pockets by evading their tax obligations. Using underhanded schemes, they fail to properly deduct and pay employment-related taxes and premiums.
The tax funds lost because of cheating could be used to help build schools and reduce class sizes, improve infrastructure, increase funding for first responders, and help veterans without adding anything more to the deficit.
Working families — Honest businesses — City, state and federal budgets — We are all getting ripped off!
Construction Industry Tax Fraud
is REAL, and It’s Hurting
Listen to the Experts!
From a Contractor“Every tax that’s not paid affects schools, hospitals and municipalities.”
From an Elected Leader“It’s tax fraud, because it’s the taxes that you and I pay that are being manipulated. The moneys we have, the contracts, the incentives we provide come from our taxes.”
From a Contractor:“I see it every day. Other legitimate business owners see it, too, when they are regularly underpriced for jobs…. (T)here is no other explanation … other than cheating.”
From the Canada Revenue Agency“Unpaid taxes mean less money for programs, such as health care, childcare, employment insurance, and pensions.”
From a Contractor“(We are) competing against people who pay 20 or 30 percent less to their workers because they’re getting around premiums and taxes.”
From a Staffing Executive“It creates an unlevel playing field for us. But there’s just so much money being lost to the state.”
From a Former IRS Officer“Due to budget cuts, attrition and shift in focus, there’s been a collapse in the commitment to take on tax fraud.”
From a Federal Treasury Official“Although the willful failure to remit employment taxes is a felony, there are fewer than 100 criminal convictions per year. (I)n our opinion, there is likely little deterrent effect.”
From a Contractor:“Legitimate contractors like us compete against these companies that don’t pay taxes, and that’s very hard to do. It puts us obviously at a disadvantage.”
From a Labor Broker:“That’s what this boils down to. We have these people intimidated.”
Days of Action Events Are Coming!
UBC affiliates have events in:
- New York City
- Los Angeles
- Kansas City
- New Orleans