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House Approves Contract Ban For Companies With Tax Debts House Approves Contract Ban For Companies With Tax Debts

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NJ Daily / HILL BRIEFS

House Approves Contract Ban For Companies With Tax Debts

April 15, 2008

The House on Monday passed a bill barring companies with tax debts from receiving large government contracts or grants. The bill, sponsored by Rep. Brad Ellsworth, D-Ind., requires government contractors to certify they do not have tax liens with the IRS and allows the Treasury Department to share information on companies’ tax debts with agencies awarding contracts.

“Companies that cheat on their taxes have an unfair competitive advantage when bidding for federal contracts because their costs are lower,” said House Oversight and Government Reform Chairman Henry Waxman, whose committee passed the bill last month. Waxman said the bill passed only after the resolution of jurisdictional issues with the Ways and Means Committee that complicated efforts to pass similar bills.

House Oversight and Government Reform ranking member Tom Davis said the administration is finalizing a regulation similar to the bill, but Davis said he had “no real objections” to the legislation.

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