My apologies for the lack of clarity in my brief post, your criticism of it is well taken.
A GW Bush era report issued by the General Accounting Office is exhaustive in its treatment of the errant behavior of some government contractors i.e., providers of “support services” to the military as I had expressed in my original post.
The summary of this report states:
“The amount of unpaid taxes for DOD contractors registered in CCR ranged
from a small amount owed by an individual for a single tax period to
millions of dollars owed by a business over more than 60 tax periods. The
type of unpaid taxes owed by these contractors varied and consisted of
payroll, corporate income, excise, unemployment, individual income, and
other types of taxes. In the case of unpaid payroll taxes, an employer
withheld federal taxes from an employee’s wages, but did not send the
withheld payroll taxes or the employer’s required matching amount to IRS.”
The entirety of this report may be found at http://www.gao.gov/new.items/d0495.pdf
This report states that 27000 vendors failed to pay nearly 3 billion dollars in federal taxes, a large amount of these taxes comprised trust fund taxes, withheld federal income taxes and Social Security taxes.
On average, this shows more than $110,000 default per contractor.
Some folks around here get mad that poor people get no cost limited use cellphones, subsidized housing and assistance to buy food. I get annoyed when rich people, making big bucks on government contracts can’t show the responsibility or decency to pay their share of taxes back into the system that enriches them.
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