Tax Fraud Days of Action 2021

The Indiana/Kentucky/Ohio Regional Council of Carpenters joined UBC members across the United States and Canada to raise awareness for construction industry tax fraud. Check out highlights from IKORCC Tax Fraud Days of Action events in Indiana, Kentucky and Ohio.

Indiana Tax Fraud Day of Action Event

The Tax Fraud Day of Action event in Indianapolis was a tremendous success. Business representatives and members of the IKORCC Executive Board spent a few hours educating lawmakers on tax fraud, with a special emphasis on solutions to tax fraud. Of the 150 elected officials invited, 62 lawmakers, both republican and democrat, visited the event and learned more about construction industry tax fraud. Indianapolis Mayor Joe Hogsett also attended the event.

The Indiana event was held at the Indiana State House atrium. To drive attendance to the event, IKORCC reps handed out tax fraud toolbox/lunchboxes packed with concrete solutions to fight tax fraud. The theme of the giveaway was, “You already have all the tools you need to fight tax fraud”. The toolboxes were a big driver to our event.

The solutions inside included: enforcing existing laws, creating a tax fraud task force, sharing information amongst government agencies and responsible bidder ordinances or RBOs.

In addition to the in-person event, the IKORCC created a new website, endtaxfraud.com. The website focuses on the actual solutions to tax fraud and what lawmakers and the public can do to help.

 

Kentucky Tax Fraud Day of Action Events

We held a two day Tax Fraud Awareness event in Louisville, Kentucky this year. On the first day, we visited a dorm under construction at the University of Louisville, with predominantly union subcontractors. We educated members of all crafts about Tax Fraud and how important it is to get involved politically with elected officials to help eliminate this illegal business model. It was an extremely successful event. We also educated and built relationships with company management teams.

On the second day, we took our messaging to a non-union led job site in Louisville. We used this as an opportunity to educate owners, workers and management teams while also gathering info on Labor Brokers, potential future members, and accurate counts of employees being paid cash or with a 1099. This gave us a new angle on how to fight tax fraud.

Ohio Tax Fraud Day of Action Event

Tax Fraud Days of Action in Columbus was a successful day of educating legislators and the public on why tax fraud is a danger to everyone. Legislators from both sides of the aisle and even some who we didn’t have a previous relationship with us, showed up to learn more about tax fraud. Legislators loved the tax fraud lunchboxes and were excited to talk about upcoming projects in their areas and what our organization has going on.

All IKORCC Representatives onsite had legislators from their area represented in the turnout.

Check out a video interview with Democrat House Minority Leader Emilia Sykes about tax fraud.

Here is another video with Republican House Representative Jay Edwards

Former Industrial Representative and UBC instructor Steve Griffith also stopped by and gave us an interview.

Prevailing Wage Protects Kentucky’s Taxpayers

Construction workers in Kentucky contribute $20 million to state and local taxes. This allows policy makers to balance budgets and fund infrastructure and public safety without raising taxes on everyone else.

However, workers NOT paid prevailing wage are eligible for up to $8,000 in public assistance, which costs taxpayers for additional reliance on cash assistance, food stamps and unpaid visits to the emergency room. Taxpayers don’t save without prevailing wage, they SUBSIDIZE low-wage jobs.

Prevailing wage is the wage paid to skilled construction workers on publicly funded projects estimated to cost more than $250,000. The wages are set by Kentucky’s Labor Cabinet based on what construction workers in the area make on private sector projects. This forces big government to abide by local private sector economies.

[i]  Kentucky’s Prevailing Wage Law, an Economic Impact Analysis, Peter Philips, Ph.D., 2014.
[ii]  Economic Policy Brief, Working Partnerships USA, 2011.

Prevailing Wage Drives Kentucky’s Economic Development

Every dollar spent on a prevailing wage project generates $1.50 in economic activity – that’s money spent at local businesses such as restaurants, shops and grocery stores – spurring additional job creation that keeps local businesses and economies strong.

In fact, the economic activity generated by prevailing wage projects supports 2,643 non-construction jobs in Kentucky!

Prevailing wage is the wage paid to skilled construction workers on publicly funded projects estimated to cost more than $250,000. The wages are set by Kentucky’s Labor Cabinet based on what construction workers in the area make on private sector projects. This forces big government to abide by local private sector economies.