Calling out “deadbeat companies” that are being given government contracts while owing taxes, President Obama signed a memo today to halt these corporations from collecting government contracts while they are “gaming the system.”

“In a time of great need, when our families and our nation are finding it necessary to tighten our belts, and be more responsible with how we spend our money, we can’t afford to waste taxpayer dollars,” Obama said from the Eisenhower Executive Office Building this morning, “And we especially can’t afford to let companies game the system.  We need to make sure every tax dollar we spend is going to address our nation’s urgent needs and to make a difference in the lives of our people.”

The President said that the amount owed in taxes by corporations is approximately $5B.  Allowing this, he said, is not only inefficient and wasteful but it’s “simply wrong,” for corporations to accept money from taxpayers while they are not themselves paying taxes.  (Not only that, it is also hypocritical).

“By issuing this directive, all of us in Washington will be required to be more responsible stewards of your tax dollars,” the president said, “All across this country, there are people who meet their obligations each and every day.  You do your jobs.  You support your families.  You pay the taxes you owe – because it’s a fundamental responsibility of citizenship.”

The memo instructs the OMB, Treasury and other federal agencies to take steps to stop these corporations from being awarded new government contracts.  It also instructs the IRS to review the accuracy of corporations’ claims concerning their unpaid taxes.

“We need to be sure that when a company says it’s paying taxes, that company is, in fact, paying taxes,” Obama said.

The president said this would be included in this year budget – and called on Congress to act legislatively also.

cf http://blogs.abcnews.com/politicalpunch/2010/01/obama-calls-out-contractor-tax-cheats.html