President Barack Obama ordered a new crackdown Wednesday on federal contractors who don't pay their taxes.
He will also direct the IRS to review contractor filings to make sure companies are not lying about the taxes they've paid.
“By issuing this directive, all of us in Washington will be required to be more responsible stewards of your tax dollars. 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,” Obama said.
It is simply wrong for companies to take taxpayer dollars and not be taxpayers themselves, he said.
“The steps I’m directing today and the steps I’m calling on Congress to take are just basic common-sense. They’re not going to eliminate all of the waste or abuse in government contracting in one fell swoop. Going forward, we’ll also have to do more to hold contractors more accountable not just for paying taxes, but for following other laws as well.”
The White House said the move is part of the president's effort to restructure government contracting to eliminate waste and abuse.