News, Political

March 21, 2022

Central South Carpenters Regional Council to hold an event to raise awareness about  Construction Industry Tax Fraud at Austin City Hall Plaza.

(Austin, TX) – On April 12, 2022, Central South Carpenters Union Representatives along with state and city leaders will hold a press conference at Austin City Hall Plaza from 11:30am-12:30pm on the crippling effects Construction Industry Tax Fraud has on our community. Tax fraud in the construction industry has been a problem for decades in which contractors either pay workers cash under the table or inappropriately designate employees as “independent contractors.” By doing so workers cannot receive tax, health, and pension benefits. This practice has negative consequences for all parties involved: the employee, the government, our communities, and honest contractors.  

The goal is to raise nationwide awareness about Tax Fraud. Participants will be able to learn about how our community is affected and hear from elected officials and leaders who are closest to the issue. Speakers include Austin Councilmember Ann Kitchen, District Attorney Jose Garza, Congressional Candidate and former Austin Councilmember Greg Casar, Texas State Representative Gina Hinojosa, and Council EST Jason Engels. 

UC Berkeley Labor Center released a study on the monetary effects of worker misclassification in the construction industry. The shocking report, released Jan 10, 2022, shows 49% of construction worker families in Texas rely on federal programs like Medicaid and food stamps to make ends meet. It also shows Texas contractors are getting out of paying $1.06 billion dollars in federal taxes ANNUALLY due to worker misclassification.  

We are concerned about these ongoing illegal activities in the construction industry and are committed to tightening restrictions to end these practices. Thanks to the help of Council Member Ann Kitchen, the Central South Carpenters have presented the City of Austin with a resolution to this issue. Like others being adopted across the country, the purpose of the Wage Theft Resolution is to set up a system to protect workers from wage theft and a way to act if they encounter it. It has been well received. Several labor and advocacy groups stand behind developing a system and are eager to see it happen.  

The Carpenters Union along with law abiding contractors, labor advocacy groups and the government working together; we hope to create serious enforcement mechanisms as well as legislative changes to ensure workers are treated fairly, and dishonest contractors no longer have a competitive edge using illegal practices. To learn more about tax fraud in the construction industry, visit the UBC website stoptaxfraud.net/standup.  

For Media Inquiries: Jaime Smith  Jsmith@cscouncil.net  504-909-5528 

File: TFDOA22 Press Release.pdf

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