West Cook News

Carpenters and union leaders are standing with Illinois legislative leaders in the fight against tax fraud in the construction industry, costing the state millions. 

Union leaders explained that subcontractors paying employees in cash costs the state more than $186 million and allows employees to be put in dangerous situations as they are working without proper protection, according to an April 15 WSILTV report. 

"Thanks to the Chicago Carpenters Union for calling attention to the problem of construction industry tax fraud in our state," Illinois Senate President Don Harmon (D-Oak Park) said in an April 15 Facebook post. "Every year, the state of Illinois loses $186 million to cheating subcontractors who pay employees in cash."

The Chicago Regional Council of Carpenters said that subcontractors paying employees in cash is allowing them to continue evading state and federal income taxes, as well as contributing to Medicare, Social Security and workman's compensation funds. Democrats agreed as they hope to end the long-held practice of carpenters being mislabeled as "independent contractors," the report said. 

Harmon said that Illinois needs to make sure the construction industry has fairness and justice like in any other industry. Illinois Attorney General Kwame Raoul agrees, also standing with Harmon and the carpenters on the issue, saying that "these rouge contractors are slick," as reported by WSILTV.

House Speaker Emanuel “Chris” Welch (D-Chicago), along with Harmon, said the issues become even more important as the state is at a precipice of a $45 billion infrastructure bill with another plan soon to come from the federal government. 

Harmon explained though these funds coming from the government will help create more jobs, it will also allow for more chances to cheat the system if there is no oversight or something done about the subcontractors.