Nation & World

Coming Thursday: Tax cheats cost you billions


Bryan Melvin walks near the intersection of Trust Drive and Belief Lane at Campbell Terrace affordable housing in east Fayetteville. Payroll records show many of the workers who worked on the project were improperly treated as contractors.
Bryan Melvin walks near the intersection of Trust Drive and Belief Lane at Campbell Terrace affordable housing in east Fayetteville. Payroll records show many of the workers who worked on the project were improperly treated as contractors. tlong@newsobserver.com

Across the country, roughly 10 million construction workers spend each day in a dangerous and fickle industry. They hang drywall, lay carpet, shingle roofs. Yet in the eyes of their bosses, they aren't employees due the benefits the government requires.

Employers treat many of these laborers as independent contractors -- a tactic that costs taxpayers billions of dollars each year. Yet when it comes to public projects, government regulators have done nearly nothing about it, even when the proof is easy to get.

The workers don't have protections. The companies don't withhold taxes. The regulators don't seem to care.

McClatchy reporters in seven states and eight newsrooms spent a year unraveling the scheme, using little-noticed payroll records that show how widespread the practice has become.

Coming Thursday online and starting Sunday in print: A special investigation uncovers how it happens under the government’s nose, and what it costs us all.

This story was originally published September 3, 2014 at 6:47 PM with the headline "Coming Thursday: Tax cheats cost you billions."

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