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March 10, 2008

Waxman calls for investigation into Blackwater's tax dodge

The Chairman of the House Oversight and Government Reform Committee is calling for an investigation into Blackwater's alleged attempts to misrepresent its own employees as subcontractors.

In so doing, Blackwater could have saved a substantial amount in taxes.

Blackwater has also been awarded tens of millions of dollars in contracts set aside for "small" businesses, i.e., firms with fewer than a certain number of employees.

I've been scrutinizing Blackwater contract documents on my own for the past couple of weeks, and I've observed some very interesting anomalies, which I look forward to sharing with you shortly.


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Couple these findings with the recent KBR "revelations" regarding tax dodges (amounting to around $500 million) and it seems that all of these God-fearing American companies would sooner melt down their gold flag pins rather than stand for the principles they would represent.

We hire Blackwater, KBR, and others with open-ended contracts, then they subcontract out. Their subcontractors end up subcontracting. This is what we call the gravy train to hell. The tax evasion is just a wet palmed slap in the face. They get bottomless deals with the government, with no oversight, no scrutiny, for billions of tax payer dollars, and they have the nerve to skip out on refilling the coffers from which they have benefitted so greatly.

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