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Waste, Fraud & Abuse

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  • Democrat
    Missouri
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    Currently, in the news is a "Breaking News", investigation into scams enabling business a contract to cheat. Our threads in this forum have always seem to plug away on the military and it's waste, fraud and abuse of funding enormous projects costing American citizens much of our hard earned money we send to the government as taxes. The waste, fraud and abuse may not be all just DOD and the military. Apparently, new investigations by a Washington Inspector has released informative news about a dirty little secret that businesses use to employ people to perform work and not pay them the "prevailing wage" as directed Davis-Bacon Act. Companies have been classifying workers as independent contractors, thus getting around the prevailing wage and ending up stealing the money back to pay themselves more without paying the employee his/her fair wage. Oh, I forgot the companies are not calling them employees, which is the scandal. Billions of dollars are being captured by companies doing Government (local, state, and federal) work by cheating the system and paying the worker less. Workers, especially many immigrants, have to pay back to his/her boss 50% of the paycheck they receive in order to keep the job.

    This is not the Government, nor the military, but the civilian CEO's and Company practices that are stealing from America. When you hide the wage and money launder the paycheck by the worker giving back cash to the management than no taxes are located and due to the government. Not only is the prevailing wage law for contracts being undermined by this scandalous practice, where the employee does receive his/her fair share for work rendered, America does not receive taxes due. This is big business CEO's and Management stealing from Americans. Not only is this billions from unpaid wages across the country, but it is billions of lost taxes due to improve America with improving the infrastructure.

    A new report being heralded by McClatchy News is using the investigating report release from Earl Devaney, who was an inspector general that took down Jack Abramoff. He has indicated that the government has known about this cheating for some time and that there are insufficient numbers of inspectors to plug the leaks in the dam that has burst. This scandal is so overwhelming that only two states have a chance in play to stop the cheating and incriminate the offenders. Maybe the back taxes can be brought back into the system, but I doubt that will ever happen. At least some prison time for the biggest offenders will steer the smaller offenders away from this dirty practice.

    The 2009 stimulus was riddled with a massive labor scheme harming workers and cheating Americans and since wrongly categorizing workers as independent contractors these companies get away with not paying taxes. Maybe, America has more to worry about than just that $600 toilet seat that's in the military's supply list. That smiling Jack & Jane CEO has been hiding a lot of crap against America for some time. I believe it is time to go after some CEO's and maybe an "Open" season is justified.

  • Democrat
    Missouri
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    McClatchy News has hit a big one, if it can gather the importance being dealt with in the political circle. I hope in the coming elections this gets high-lited with setting changes to IRS rules in how employers can classify workers. You can see more in searching on "cheating paying independent contractors". There are many labor articles and in the workplace issues.

    -articles from IBEW.org
    -court catches FEDEX cheating employees
    -todays workplace
    -pay schemes cheating workers out of the American dream

    As the wealth gap increases and the middle class erodes this scam makes perfect business sense. By cheating the American worker on fair pay, CEO's and company officials can hide their money received from the workers and not pay tax on their receipts. Employers outsource work more so, to keep the bottom-line a priority in classifying workers as independent contractors, pay them less, report no taxes, and keep more profits. The perfect business scheme that is greedy and cheats the American worker and taxpayer. We all paid taxes for stimulus funding provided for projects around the country, so America should get the most for the money that is spent. More infrastructure repair, new buildings, new bridges, new roads, and in return with workers getting fair pay. If the pay and taxation would work fairly with CEO's and company's playing fair, America could do a lot more for the people.








  • Independent
    Ft.myers, FL
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    AmcmurryFreedom Wrote: McClatchy News has hit a big one, if it can gather the importance being dealt with in the political circle. I hope in the coming elections this gets high-lited with setting changes to IRS rules in how employers can classify workers. You can see more in searching on "cheating paying independent contractors". There are many labor articles and in the workplace issues.

    -articles from IBEW.org
    -court catches FEDEX cheating employees
    -todays workplace
    -pay schemes cheating workers out of the American dream

    As the wealth gap increases and the middle class erodes this scam makes perfect business sense. By cheating the American worker on fair pay, CEO's and company officials can hide their money received from the workers and not pay tax on their receipts. Employers outsource work more so, to keep the bottom-line a priority in classifying workers as independent contractors, pay them less, report no taxes, and keep more profits. The perfect business scheme that is greedy and cheats the American worker and taxpayer. We all paid taxes for stimulus funding provided for projects around the country, so America should get the most for the money that is spent. More infrastructure repair, new buildings, new bridges, new roads, and in return with workers getting fair pay. If the pay and taxation would work fairly with CEO's and company's playing fair, America could do a lot more for the people.
    I'm glad that you see that this country is indeed corrupt in just about everything; the Pentagon, the Politicians, the Elections, Workers wages as you point out, government procurement, baseball, the police, the counties, the communities (HOA fees), the service sector (garages/appliance services),builders, utility companies, credit card fraud, NRA, etc etc. Everyone is in the game here. So that keeps us safe? (flags, pins, badgets, churches don't do that!) Let us first cleanup the mess in this country before we start our finger pointing at the world and tell them what to do. The mess at home is worse than ever; they just compromised your debit/credit cards at Home Depot, so we may as well return to the good old days and store your money under the mattress !!! What a country!!! Keep waving those flags; that helps!!!
  • Democrat
    Missouri
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    The waste of it all is America is loosing out in receiving tax with that tax amount diverted to employers who purposely misidentify a workers classification. By doing this scam the employer identifies the employee as an independent contractor. The employer can bid lower than other companies and get the stimulus funds or contract for doing the work, The employer will not pay a fair wage to workers and will not pay the taxes. The American people loose and the worker losses. Today in the news, I see where Washington DC has Senators and Congress catching hell from their states on this national scam. I read where both Republican and Democrat are seeing this as it is a "SCANDAL". It has also caught the attention of the President, as if he needs more on his full plate. McCatchy News networks are hammering this into the public making everyone aware of the scandal.

    The dust of this issue is in the air and hasn't settled, so, I'm interested in how this will turn out. Labor unions are all over this, so I know they will not let go. Workers around America are beginning to unite and more news will surely come out. I'm just surprised that this scam has been going on for so many years and there are even business courses that teach employers how to make more money by performing this misidentification of workers.

    We all probably know someone who is caught up in this scandal and not receiving his/her fair wages.