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Waxman Calls for Investigations of Blackwater Tax Dodge
It was a pretty neat trick. Because Blackwater classified its guards in Iraq as independent contractors, the company saved possibly "tens of millions" of dollars in taxes.
A number of senators called for investigations last October. But House oversight committee Chairman Henry Waxman (D-CA) says that his staff have been digging and now it's clear: Blackwater is wrong when it says that its guards fit the description of contractors and not employees, and that dodge had much bigger benefits than a simple tax dodge.
Because Blackwater had many fewer "employees," for example, it made out with a number of contracts reserved for so-called small businesses: "at least 100 small business set-aside contracts. worth over $144 million, that have been awarded to Blackwater since 2000."
Waxman wants the IRS, the Small Business Administration, and the Department of Labor to investigate. Blackwater is already the focus of its share of criminal investigations, but it may be that these, if they were to get off the ground, would do the most damage to the company's bottom line.
Josh
Zachary
Great job...
The committee did an in depth investigation and found out something which the IRS has been ruling on for fifty years... our government really IS broken!
I, as a former democrat (until two years ago) actually believed there was a difference between the Dems and the Reps. I will never make that mistake again. Both parties have been screwing this country for many years. It has just become more commonly know this past few years.
I have been attempting to find just ONE campaign promise the democrats have actually followed through with since we voted them into power. Can any of you more intelligent and well informed folks give me some examples... if they exist? Thanks in advance...
March 10, 2008 1:03 PM | Reply | Permalink
Hey no problem. It is called a VETO. No matter what passes in the Democratic congress it is killed by a veto. That is how the US government works. We need a Democratic President as well. I thought you learned that in grade school. So now you know! You are very welcome!
March 10, 2008 2:19 PM | Reply | Permalink
Maybe now we should call them "Hotwater?"
They are certainly in it...
March 10, 2008 1:06 PM | Reply | Permalink
Have no fear for Blackwater. As the Praetorian Guard for the GOP they'll skate. This too will pass.
March 10, 2008 1:29 PM | Reply | Permalink
Hey, are you all blind or naieve or what? The Democrats are just as corrupt as the Republicans. My hope was that, if we got them in last election, it would take a while for them to get up to speed and reverse some of the Bush roadblocks and obfuscations and corruption. Unfortunately, the Democrats have been slow to do so, and they're not even bold or strong enough to stand up to an essentially unfeeling and self-righteous President. So why all the hand-wringing? We need to elect people who will change things, really change them, if we want to see our freedoms returned. "Eternal vigilance is the price of freedom" and "Power corrupts. Absolute power corrupts absolutely." Haven't you guys ever heard those wise words of wisdom?
March 10, 2008 1:33 PM | Reply | Permalink
What about KBR? Those creeps are doing the same damn thing in a roundabout way and saving ALOT more money too.
March 10, 2008 1:45 PM | Reply | Permalink
And what, OCPatriot, would you call what Rep. Henry Waxman is doing? Rolling over and looking the other way like any Republican in his shoes would do?
If for nothing else, Waxman's seat as Chair of the House Oversight Committee is the best thing to happen to BushCo. in 8 years. Bringing Dems to power is what brought him the seat, so I'd say that's a major boon.
March 10, 2008 1:45 PM | Reply | Permalink
To paraphrase the Bard: Dems are but a walking shadow, a poor player, that struts and frets his hour upon the stage, and then is heard no more; it is a tale told by an idiot, full of sound and fury, signifying nothing.
March 10, 2008 3:29 PM | Reply | Permalink
And so we the people begin yet another waiting game.
Fooeee!
The dems have no balls.
March 10, 2008 2:46 PM | Reply | Permalink
"We need to elect people who will change things, really change them, if we want to see our freedoms returned."
How do you expect to elect anybody without the return of reliable balloting?
Even the establishment of an extra-constitutional "government" by Little Georgie and The Big Dick will not last long once the American people wake up and realize how much of their freedom is already gone.
Change in government comes in increments. When change is criminally implemented the increments are a bit larger.
Out damn spot!
His Supreme Shrubbiness will be gone soon.
You might want to try out your Howard Beale imitation then.
March 10, 2008 3:07 PM | Reply | Permalink
Sounds to me like Waxman's committee is finally getting around to the [Al] Capone Gambit - follow the money, boys!
BTW, any time someone claims independent contractor status, be skeptical - be very skeptical. The IRS has pretty cleaq guidelines about what constitutes an independent contractor, and I would guess that Blackwater forces meet few of them.
From the IRS website: "In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.
It is critical that you, the employer, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.
Caution: If you incorrectly classify an employee as an independent contractor, you can be held liable for employment taxes for that worker, plus a penalty.
Who is an Independent Contractor?
A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result."
March 10, 2008 4:51 PM | Reply | Permalink
"Hey no problem. It is called a VETO. No matter what passes in the Democratic congress it is killed by a veto. That is how the US government works. We need a Democratic President as well. "
Does this mean that if a Democrat is elected as president, all those who lied to get elected this past term will all immediately turn a new leaf and become honest?
GIVE ME A BREAK!
They lied to get the job.... they'll continue to lie until they're thrown out... both Republican AND Democrats....
March 10, 2008 8:09 PM | Reply | Permalink
Hey, johnnydoughey, do you understand what veto means? They didn't lie if they can't get enough votes to get it done. You, OC Patriot and Bushie don't understand the dynamics in play. You can't pass a thing unless you get Republicans to reach across the aisle. When we get a Dem prez, then the stuff will roll. Go ahead and spout how the Dems haven't done crap, but you just bare your hollow shell of an argument.
March 11, 2008 5:07 AM | Reply | Permalink
ahem. the dems have passed new laws and guidelines made by the 9/11 commission - which hasn't been done by the lying liars who pretend to care about "national security". they have also raised the minimum wage which is huge for our workforce. they have issued new fuel efficiency standards - huge for our first steps towards a sane environmental policy. in case you haven't noticed, they have had their hands tied by the republicans - issues that resonate with the voters such as ... funding for the Iraq war (68% of us want out), investigations into corruption, war profiteering and etc all stopped in their tracks by the republicans. where is your outrage over their efforts to not allow progressive policies to be put in place? with the democrats who have their hands tied or with the republicans who are doing the tying? fyi, there's this thing called google where you can do your own research on these issues instead of making ignorant comments here.
March 11, 2008 1:03 PM | Reply | Permalink
Hey, it's how they got Capone.
March 11, 2008 1:38 PM | Reply | Permalink