Monday :: Oct 22, 2007

Blackwater Skirted Tax Laws

by Steve

Hnery Waxman may have found something with legs that will bring down Blackwater, and call into question why the Bush Administration is letting the company get away with violating IRS directives and the law.

New documents suggest that Blackwater may have engaged in significant tax evasion, failing to withhold and pay millions of dollars in Social Security, Medicare, unemployment, and related taxes, and sought to conceal its conduct from Congress and law enforcement officials.

Apparently Eric Prince treats his employees as independent contractors, allowing him to avoid paying millions in taxes to the government, and he has been doing this even after the IRS told him in March that he should stop. Of course Prince didn't mention a word about this at his testimony earlier this month.

But as long as those campaign contribution checks kept clearing the bank, Bush/Cheney didn't care.

It's bad enough that these mercenaries make so much more than our soldiers do, but now they are getting tax free income to boot and their employer is bilking the treasury right under Condi's nose.

Steve :: 3:48 PM :: Comments (11) :: Digg It!