Blackwater's tax problem

From the New York Times, this editorial about Blackwater's tax and employment practices:

As the nonpareil war profiteer in Iraq, Blackwater Worldwide keeps outdoing its own mercenary record. Ranking Blackwater executives have used inside influence as administration fund-raisers to multiply their no-bid war contracts a thousandfold to more than $1 billion. Armed Blackwater guards redefined Ugly American for the Iraqi people last September in fatally shooting 17 civilians with impunity in a burst of “spray and pray” panic on the streets of Baghdad.

And now Congressional investigators report dodgy bookkeeping by which Blackwater insists its 850 operatives in Iraq are separate contractors, not employees. That little device has allowed the company to avoid paying an estimated $50 million in American payroll taxes.

Tax and labor laws may have been violated by Blackwater’s being awarded $144 million in contracts that were supposed to go to small businesses. Henry Waxman, chairman of the House government oversight committee, is calling for a multiagency investigation.

It seems to me that any investigation of Blackwater should include inquiries by the North Carolina Department of Revenue. Is anyone in our state looking into whether the mercenary company has also evaded North Carolina tax policies?

How any company with a billion dollars in revenues can receive contracts as a "small business" is beyond me. Maybe the skids were greased by one of their new lobbying firms?

Comments

The cream may rise to the top

yet in Blackwater's case, it would seem the scum rises to the top every bit as much.

These people are lower than the administration that bred them.

North Carolina. Turning the South Blue!

North Carolina. Turning the South Blue!

Man - they don't want the Labor Dept on their butts

I don't care who they are. That can bring them down. The U.S. Department of Labor needs to investigate them - audit their payroll practices. It's like I've said all along. The way to get these people is the same way they got Al Capone. Not with the big stuff, but with the little laws they break.

Be the change you wish to see in the world. --Gandhi

Tell the Pope to get Blackwater?

Man - they don't want the Labor Dept on their butts

I don't care who they are. That can bring them down.*Linda

During the cold war! Stalin was inform that the Pope was considering freeing Poland from the Soviet Union by a adviser.

His answer was simple! " How many divisions does the Pope have?"

So how many SWAT teams does the labor department have?

Max, don't scare me.

And for some reason, I think the Labor Dept. has quite a few SWAT teams. (it's funny if you think about it.)

Be the change you wish to see in the world. --Gandhi

Raid! Raid!

Yikes Max! You are scaring me out of my Democrat principles for exposing Blackwater and those Labor Department Swat teams*paraphasing Linda

Don't worry! Blackwater train those labor department swat teams. So far they have raided 4 Tyson chicken farms in Arkansas and 1 Catfish farm in South Alabama arresting the owner name Obama?

Isn't that

how they finally got Al Capone? Maybe Waxman will be this generation's Eliott Ness.

In the meantime, I wonder if Blackwater will try to get royalties for this little medical tidbit.

speaks for itself, jgolden

FALLUJAH, Mar 26 (IPS) - Iraqi doctors in al-Anbar province warn of a new disease they call "Blackwater" that threatens the lives of thousands. The disease is named after Blackwater Worldwide, the U.S. mercenary company operating in Iraq.

Be the change you wish to see in the world. --Gandhi

Good point, James....

But what comes to my mind is the question, if this congressional panel knows about the possible illegality of this type of contracting, why not refer to the IRS for their ruling. Maybe they have already approved this, or they are not aware. These state Revenue depts closely monitor the IRS rulings, and usually will follow up to get their piece of the pie. I hope we get to see a lot more on this story in the near future.