Iraq Contractor KBR Has Dodged $500 Million in U.S. taxes March 10, 2008Posted by Aaron Walter in Uncategorized.
Tags: Defense Base Act, Iraq, KBR, Service Employers International, Shell Corporations, Taxes, U.S. Contractors
Kellogg Brown & Root (KBR) sure is a piece of work. Lets recap a week or so of posts concerning KBR.
1. KBR has been passing along to the American taxpayer, AIG’s inflated premiums for Defense Base Act coverage, so that KBR (and other contractors in Iraq and Afghanistan) could be insulated from liability for injuries to its employees.
2. KBR is presently being sued in Federal Court for allegedly intentionally causing the deaths of six KBR truck drivers in 2004.
3. Now we discover that the 10,000+ Americans working for KBR, were really working for a Caribean company, not an American one, saving KBR as much as $100 million a year in U.S. Medicare and Social Security Taxes. By claiming its own employees, many of which were hired in Texas and shipped directly to Iraq from there, to be employees of the Cayman Islands corporation Service Employers International Inc, KBR also avoids having to pay for unemployment insurance. That means KBR employees coming home from Iraq are ineligible to recieve unemployment. I bet that wasn’t part of the orientation movie. I also bet it wasn’t part of the pitch to the Department of Defense before they were granted a no-bid contract for work in Iraq.