Indianapolis Mayor Joe Hogsett to Join Tax Fraud Day of Action at Indiana Statehouse

Lawmakers, contractors, and construction workers in Indianapolis are preparing for Days of Action events to bring attention to the growing problem of tax fraud in the construction industry.

Over 100 Indiana lawmakers, contractors & construction workers will gather at the Indiana Statehouse on Monday, April 15th, 2019 from 11:00 a.m. to 1:00 p.m. in the north atrium to shine a spotlight on the corrupt practices of illegitimate contractors who steal billions of dollars from our communities – money that should be spent on education, public safety and infrastructure. Tax fraud is just one aspect of the illegal business practices plaguing the industry, along with wage theft, independent contractor misclassification, and workers’ compensation insurance fraud.

Indianapolis Mayor Joe Hogsett will share his thoughts on tax fraud in Indianapolis and how it hurts the city. Mayor Hogsett addresses the crowd at 12:15 p.m. “It’s tax fraud, because it’s the taxes that you and I pay that are being manipulated,” said Joe Hogsett, Mayor of Indianapolis. “From neighborhood-based programs to major initiatives, to the public/private partnerships that drive our city forward – all of these things are only possible when everyone pays their fair share.”

The Construction Industry Partnership will be joined by the Indiana Kentucky Ohio Regional Council of Carpenters, state & local lawmakers and some of the state’s most prominent business owners in the fight to crack down on these destructive and illegal business practices.

The fraud comes when workers are paid off the books by shady subcontractors and labor brokers, who are hired by contractors to underbid law-abiding businesses. Fraud happens on all types of projects, including taxpayer-funded projects—which means we all lose.  Rampant cheating in the construction industry makes it difficult to repair roads

Construction industry tax fraud and related crimes and violations are happening every day on large-scale projects, costing Hoosier communities an estimated $405 million dollars statewide in lost federal and state taxes.

Recovering unpaid tax dollars in Indiana could pay for:

  • 8,741 state troopers
  • 7,937 teachers
  • 325 miles of resurfaced highways
  • 783 small business loans

The April 15th rally in Indianapolis is part of the nationwide Construction Industry Tax Fraud Days of Action by the United Brotherhood of Carpenters and Joiners of America to raise awareness and generate action against tax fraud and related crimes.

About the Construction Industry Partnership:

Representing the carpenters union and over 700 contractors throughout the state of Indiana, the Construction Industry Partnership is dedicated to create a lasting and positive impact on the construction industry. By acting as one unit, the CIP can advocate for change at a political level, demand high standards are enforced and recruit top talent throughout the state.

Indianapolis Mayor Joe Hogsett Helps Fight Tax Fraud

In March, Indianapolis Mayor Joe Hogsett visited the IKORCC to discuss the growing issue of tax fraud and the effects it has on responsible contractors, the city, and taxpayers.

Tax fraud occurs when companies misclassify workers who should be employees in order to avoid paying their fair share of unemployment insurance and federal, state and local taxes. Companies that commit tax fraud are often able to give lower bids on projects since they aren’t paying their share of taxes – a practice which makes it difficult for responsible contractors to compete fairly.

“Everybody ought to have the right to compete fairly,” Mayor Hogsett said while addressing contractors.  “I want to be clear – what the city seeks to do is not to pick winners and losers. Our job is to make sure everyone is operating on a level playing field,” Hogsett added.

Mayor Hogsett also acknowledged that the IKORCC has been at the forefront of the battle against tax fraud. “The carpenters have really taken a leadership role in this regard,” he said.

In response to the growing tax fraud problem in the construction industry, Mayor Hogsett says he put together a working group to explore the ordinances in place within the city and the means of enforcing these policies. “The ordinance is a bit vague in the enforcement area,” he said, adding that he hopes to have an enforcement officer in place in the future to cut down on tax fraud.

The IKORCC has seen an increase in the prevalence of tax fraud in Indiana, Kentucky, and Ohio and hopes to work with Mayor Hogsett and the working group to help curtail the issue.

Click here to learn more about tax fraud.