[Congressional Record Volume 153, Number 64 (Friday, April 20, 2007)]
[Extensions of Remarks]
[Page E817]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             FEDERAL CONTRACTOR ACCOUNTABILITY ACT OF 2007

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                          HON. BRAD ELLSWORTH

                               of indiana

                    in the house of representatives

                         Friday, April 20, 2007

  Mr. ELLSWORTH. Madam Speaker, each year, we lose billions of dollars 
in tax revenue because of fraud and payment delays.
  I was particularly angered when I read a March 2006 report issued by 
the Government Accountability Office (GAO) that found tax debts 
totaling $1.4 billion were owed to the federal government by over 3,800 
GSA contractors. Shockingly, these GSA contractors represented 
approximately 10 percent of all GSA contractors during Fiscal Year 2004 
and the first 9 months of Fiscal Year 2005.
  This is simply unacceptable. It is my aim to increase the scrutiny on 
government contractors who owe millions in unpaid taxes even as they 
pad their bottom lines with taxpayer dollars.
  Today, I am introducing a bill that will up the ante on bad actors 
who cheat our government of tax revenue and, in the process, gain an 
unfair advantage over businesses that play by the rules.
  This legislation, the Federal Contractor Accountability Act of 2007, 
will require prospective contractors to certify that they are not 
delinquent in their federal tax payments. No prospective contractor 
will be awarded a contract with a federal agency unless the prospective 
contractor certifies in writing to the agency making the award or 
extension, or issuing the order, that the contractor owes no Federal 
tax debt.
  To certify, the prospective contractor must acknowledge that within a 
3-year period, they have not been convicted or had a civil judgment 
rendered against them for violating any tax laws, failing to pay any 
tax, or has been notified of any delinquent taxes for which the 
liability remains unsatisfied.
  Additionally, to certify, the prospective contractor must acknowledge 
that they have not received a notice of a tax lien filed against them 
for which the liability remains unsatisfied or the lien has not been 
released.
  It is that simple. It is not too much to ask that a private entity 
that wishes to do business with the federal government certify that 
they pay their taxes in good faith.
  Madam Speaker, the Federal Contractor Accountability Act of 2007 is a 
practical and efficient way to ensure that we close the ever-widening 
tax gap. This legislation protects good faith contractors who are 
playing by the rules. These contractors should not have to unfairly 
compete against tax cheats for federal contracts.

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