William C. Sproule, Executive Secretary-Treasurer of Keystone + Mountain + Lakes Regional Council of Carpenters, recently argued for action to stop worker misclassification and tax fraud in Pennsylvania. Sproule highlights the practice of contractors misclassifying workers as independent contractors in order to avoid paying taxes and health and workers’ benefits.
From The Philadelphia Inquirer:
In Philadelphia and other cities, elected officials and enforcement agencies have formed tax fraud task forces and advisory groups, using experienced members of the industry to help expose worker exploitation and enforce laws aimed at protecting construction workers and ensuring that everyone pays their fair share of taxes. The Carpenters union was part of a coalition that called for the formation of a Philadelphia ad hoc group on tax fraud. We are now working with others in the industry to address the issue.
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Most Americans pay their fair share of taxes, and there are consequences for those who don’t. Aside from the impact on the federal treasury — estimated to be $450 billion a year in lost revenue — state and local governments lose millions each year when construction and other companies pay their workers off the books, or intentionally misclassify them as “independent” contractors.
