By Mike Dunn
PHILADELPHIA (CBS) — Philadelphia’s city controller has issued a report alleging rampant tax evasion at construction sites around the city.READ MORE: 6 Dr. Seuss Books Won't Be Published For Racist Images
Controller Alan Butkovitz says his investigators visited numerous construction sites throughout the city and found what he believes is widespread evasion of wage and business taxes.
He says the contractors are using subcontractors who in turn hire other subcontractors.READ MORE: WATCH: Pennsylvania Health Officials To Provide COVID-19 Vaccine Update
“It’s the Wild West in Philadelphia on construction projects,” Butkovitz told KYW Newsradio today. “People are being paid in cash, people reported receiving checks — we got a copy of at least one check in which it was clear that there were no taxes withheld.”
Butkovitz estimates that the tax revenues lost to the city to be in the millions, and he’s recommending stricter enforcement by the Department of Licenses and Inspections.
The report also says investigators found numerous federal safety violations at these construction sites, which Butkovitz says are mainly small projects using nonunion labor.MORE NEWS: President Joe Biden To Announce That Merck Will Work With Johnson & Johnson To Manufacture Coronavirus Vaccine