WASHINGTON – Senators John Kennedy (R-La.) And Mike Braun (R-Ind.) Have introduced legislation that would prohibit the Export-Import Bank (EXIM) from granting loans to individuals and businesses that fail to repay not their tax debt.
“American taxpayers should not be forced to subsidize companies that have not even paid their own taxes, and I am proud to work with Senator Braun to report to the Export-Import Bank,” Kennedy said.
“The Export-Import Bank should not act as an ATM for tax offenders and this legislation will eliminate this loophole, while eliminating potential fraud from dozens of companies,” Braun said.
EXIM Bank currently requires companies that apply for certain financing to self-certify that they have no past due federal debt. The Government Accountability Office (GAO) analyzed the data and identified billions of dollars in authorized EXIM transactions associated with dozens of companies that may have fraudulently requested funding.
The GAO found that:
• Federal law states that applicants who are past due on federal debt cannot receive direct federal loans, loan guarantees, or loan insurance until the past due debt is satisfactorily resolved.
• Financial pressures potentially induce participants or employees to commit fraud on applications to use EXIM.
• Using data of the Rewards Management System (SAM), GAO found that from calendar years 2014 to 2016, EXIM allowed transactions …
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