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house Bill H.R. 1562

If you Haven't Paid Your Taxes, Should you be Banned from Getting Federal Contracts and Grants?

Argument in favor

This bill would ban people and organizations that owe the government money from receiving government work. It makes sense: if you don’t pay what you owe, don’t expect the government to support you or your business.

Cary's Opinion
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04/17/2015
I owe my soul to the company store! Pay your tax bill, then ask for your government contract. Lazybones.
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DCPolitical's Opinion
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05/23/2015
One should pay the government what they owe before expecting something in return. It's only fair.
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billwdk9's Opinion
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04/16/2015
No federal contracts or grants should be awarded to tax cheats like Al Sharpton.
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Argument opposed

While it's fine to ban low level tax dodgers from getting government contracts and grants, what about the large scale companies that help the government run? It’s a good idea, but it’s not worth losing big sections of government functionality.

JohnC1957's Opinion
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04/19/2015
If taxes are owed, they should should be recouped as part of the payment. In other words reduce the payment owed by the amount of taxes owed along with appropriate penalties and interest. This way, the Government gets what is owed, and the company still receives some income.
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Donna's Opinion
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04/16/2015
I think this bill needs to be more specific. Not all of those who have tax debt are "tax dodgers." My spouse died, I had to live off of his 401K without knowing of all taxes and penalties. I cannot afford to pay them. Now after 5 years a 18,000 tax debt is 30,000.00 tax debt. But, I cannot afford to pay. I make 110.00 month payments. But, I am not a tax dodger.
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Monte's Opinion
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10/16/2015
The idea sounds good on the surface but individual cases differ. When irs makes a wild claim should the company forfit right to contest so they can get a contract? No
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Homeland Security and Governmental Affairs
  • The house Passed April 15th, 2015
    Roll Call Vote 424 Yea / 0 Nay
      house Committees
      Committee on Oversight and Reform
    IntroducedMarch 24th, 2015

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What is House Bill H.R. 1562?

This bill hopes to incentivize people to pay their taxes by banning corporations and people with outstanding taxes from receiving government contracts and grants.


If passed, the bill would set up an additional step for corporations and people applying for government contracts and grants. They would have to submit a form when they are applying with an agency that says they don't have unpaid taxes — the Treasury Department would then be authorized to verify that claim. Corporations and people with outstanding taxes would not be able to receive grants or offer contracted work. However, if U.S. interests were at stake,  the grant or contract could be awarded.


What’s a government contractor? A lot of things. The government signs contracts with people to do all sorts of stuff — Boeing, who makes airplanes, and Lockheed Martin, who makes pretty much anything that has to do with the military, are numbers two and one, respectively, when it comes to government dollars received. But the people who clean buildings in the Capitol are also contractors—it’s a wide-reaching term.


According to a memo by the Government Accountability Office, contractors used by the government owe a total of $5 billion in unpaid taxes to the government. It’s not much compared to the federal budget — $4 trillion for 2016 — but it’s enough to keep the Forest Service running for almost a year.

Impact

Taxpayers, government contractors, companies that want government contracts, people and businesses that would otherwise receive government grants, federal agencies, and the Treasury Department.

Cost of House Bill H.R. 1562

$0.00
The CBO estimates that this bill would not have a significant impact on the federal budget.

More Information

Of Note: 

This bill adds a new, if not super-significant, dimension to the corporate personhood debate: If a majority shareholder in a corporation owed the government taxes, the corporation would be treated like that person. Does that mean people are corporations?


The ban does not included people receiving entitlement grants — like, say, veterans remodeling their houses to compensate for an injury. They could still owe the government money and still get money. Individuals and corporations that were in the process of paying outstanding taxes, or were in court about it, could also receive grants or contracts.


In Depth:

Sponsoring Rep. Jason Chaffetz (R-UT) has introduced this bill twice before — once in 2011, again in 2013, and now. This time, however, the bill has bipartisan support. President Obama endorsed the Senate version of this bill, sponsored by Senator Claire McCaskill (D-MO).  



Media:

Sponsoring Rep. Jason Chaffetz (R-UT) Press Release (Previous Bill Version)

CBO Cost Estimate

Government Executive

Law 360

House Republicans (Previous Bill Version) 


Summary by James Helmsworth

(Photo Credit: Flickr user RangerRick

AKA

Contracting and Tax Accountability Act of 2015

Official Title

To prohibit the awarding of a contract or grant in excess of the simplified acquisition threshold unless the prospective contractor or grantee certifies in writing to the agency awarding the contract or grant that the contractor or grantee has no seriously delinquent tax debts, and for other purposes.

    I owe my soul to the company store! Pay your tax bill, then ask for your government contract. Lazybones.
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    If taxes are owed, they should should be recouped as part of the payment. In other words reduce the payment owed by the amount of taxes owed along with appropriate penalties and interest. This way, the Government gets what is owed, and the company still receives some income.
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    I think this bill needs to be more specific. Not all of those who have tax debt are "tax dodgers." My spouse died, I had to live off of his 401K without knowing of all taxes and penalties. I cannot afford to pay them. Now after 5 years a 18,000 tax debt is 30,000.00 tax debt. But, I cannot afford to pay. I make 110.00 month payments. But, I am not a tax dodger.
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    No federal contracts or grants should be awarded to tax cheats like Al Sharpton.
    Like (3)
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    One should pay the government what they owe before expecting something in return. It's only fair.
    Like (3)
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    The idea sounds good on the surface but individual cases differ. When irs makes a wild claim should the company forfit right to contest so they can get a contract? No
    Like (2)
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    If you do not pay your fair share we have to, so if I have to pay more because you do not pay no federal bonuses for you. Pay up or shut up!
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    You can't owe the government money and then take more government money. I understand that not everyone who owes taxes is evil or lazy, but we have to set some standard.
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    Seriously?! If you haven't paid your taxes you are a mooch and shouldn't be allowed to participate. When was the last time they let you into a football game when said "I don't have any money to give towards this, but I really think you should let me in anyways?
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    Tax-dodgers should be banned from everything government-related - contracting, voting, and benefits. The system isn't sustainable as is - $18-trillion debt. If only a few give, while many take, bankruptcy is inevitable.
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    Companies that handle essential services for the government should still be able to get those contracts if they perform well, but any profits and CEO bonuses above operational costs should be forfeited and applied toward their outstanding balance until their tax bill is paid off.
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    What could possibly be unfair about this law?
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    Grants yes ban them. Contract No. Garish the contract.
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    Paying your taxes is an important part of participating in the effective functioning of our government. Dodging taxes shows a lack of participation in the national community, and such an individual should not receive benefits from the national community.
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    Though the current federal tax system should be eliminated and replaced with either the Fair Tax or a flat tax, we are still stuck with the inanities now prevalent. Until Congress gets off its collective fat butt and eliminates the current tax system, pay your taxes just as I am required to do!
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    Should be a 100% yes vote
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    A really stupid question
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    I just hope John Citizen doesn't end up getting hurt....
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    Should be amended to people who work for the government
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    Pay your taxes people.
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