KBR, Half a Billion Dollars in Payroll Taxes, Not Paid!!!!

During work today I caught the following on NPR's Here and Now which comes out of Boston, and while it was a real nice, and comfortable, bright sunny day, My Freaking Rage Level Hit Sky High!!!


The Boston Globe reports today that the largest war contractor in Iraq is skirting hundreds of millions of dollars in US taxes by setting up shell companies in the Cayman Islands. The Globe found that Texas-based Kellogg, Brown and Root (KBR) may have avoided half a billion dollars in payroll taxes by hiring employees through foreign subsidiaries. But those subsidiaries are nothing more than an address, with no phone, fax or offices. The Boston Globe's Foreign Affairs correspondent, Farrah Stockman, went to the Cayman Islands to investigate.

You can click here to bring up the audio of the show in Real Player. This is the whole hour show, but the report above is the first report and only takes the first 10min. or so.

In the discussion Ms Stockman states they Estimated the loss of payment at some $500million a year!

Now take a moment to think about this.

They are getting paid Billions of Your Money, although now All Borrowed, You and your Kids and Grand Kids, will be Paying this back, with Huge Interest Payments!

While getting Paid, with Your Money, they are Skimming Millions of that, into their pockets, instead of bothering to pay, Your Money, back into the Government Coffers of the troubled Social Security and Medicare!

The Boston Globe Article is 6 pages long, so it's abit of a long read but Very Interesting!

More than 21,000 people working for KBR in Iraq - including about 10,500 Americans - are listed as employees of two companies that exist in a computer file on the fourth floor of a building on a palm-studded boulevard here in the Caribbean. Neither company has an office or phone number in the Cayman Islands.

The Defense Department has known since at least 2004 that KBR was avoiding taxes by declaring its American workers as employees of Cayman Islands shell companies, and officials said the move allowed KBR to perform the work more cheaply, saving Defense dollars.

What does one Senator have to say about this, which is abit sketchy as to legality:

"Failing to contribute to Social Security and Medicare thousands of times over isn't shielding the taxpayers they claim to protect, it's costing our citizens in the name of short-term corporate greed," said Senator John F. Kerry

Now, I not only want Indictments, from all the suspected crimes of these last 7yrs. I Want A Full Blown Investigation into the Financial Records of bush on down the line of this entire administration, into Congress, and any lurkers of this crowd inside and out of Government, These War Mongering, War Profitteers, Must Be Brought To Justice!

The largest of the Cayman Islands shell companies - called Service Employers International Inc., which is now listed as having more than 20,000 workers in Iraq, according to KBR - was created two years before Cheney became Halliburton's chief executive. But a second Cayman Islands company called Overseas Administrative Services, which now is listed as the employer of 1,020 mostly managerial workers in Iraq, was established two months after Cheney's appointment.

Cheney's office at the White House referred questions to his personal lawyer, who did not return phone calls.

I want a Public View of Financial Records before they came into Power compared to what they have now, Hidden and Non-Hidden!

As the Democratically Controlled Congress refuses to bring Impeachment, a must first step to Justice and Accountibility, and seems to continue to back off on the fight for our rights and the protection of the Constitution, than one must believe that some, on that side of the isle, are Complicit to what has been going on, Profitting on the Blood Money!

I would hope I'm wrong, as there are numorous Democratic Representatives that really seem to do what they were hired to do, but my instincts tell me some are as Guilty as this Cabal that has been Raping not only this Country but the Innocents of Other Countries along with All the Death and Destruction they've brought forth!!

It isn't only Social Security and Medicare not being paid:

In addition, the practice enables KBR to avoid paying unemployment taxes in Texas, where the company is registered, amounting to between $20 and $559 per American employee per year, depending on the company's rate of turnover.

Why? Because their employed by a Foreign Company!

In interviews with more than a dozen KBR workers registered through the Cayman Islands companies, most said they did not realize that they had been employed by a foreign firm until they arrived in Iraq and were told by their foremen, or until they returned home and applied for unemployment benefits.

Up untill any decide to seek damages or what should be due them, than:

But there is one circumstance in which KBR does claim the workers as its own: when it comes to receiving the legal immunity extended to employers working in Iraq.

Nonetheless, KBR's top competitors in Iraq do not appear to have gone to the same lengths to avoid taxes. Other top Iraq war contractors - including Bechtel, Parsons, Washington Group International, L-3 Communications, Perini, and Fluor - told the Globe that they pay Social Security and Medicare taxes for their American workers.

As I said above, I want a Complete, and I mean a Complete Investigation into what has been going on In and Out of the Peoples House, the White House, all these last seven years!!!

No votes yet


Hopefully people are starting to really catch on to what's been happening with privatization.

Employees sometimes don't figure out who their employer actually is until they get home and try to apply for either unemployment or DBA benefits.

KBR uses a subsidiary in the Cayman Islands, Service Employees International, Inc. (SEII) to pay its employees. Here's the thing, SEII is owned by Halliburton. But KBR is no longer a Halliburton subsidiary. KBR insists they are a wholly owned and independent company. But they're using a Haliburton subsidiary. Okey-dokey. Someone should pull up SEII docs and peek behind the curtain....

Now, in terms of the Defense Base Act, injured employees have trouble getting their medical expenses covered in the US and consequently have trouble getting medical care. All because SEII is registered in the Cayman Islands not the US where the injured employee is trying to get care.

One suggestion I've heard that makes some sense is to allow the contractors to use VA services. Which generally sounds reasonable but then why should the US taxpayer reimburse KBR's DBA premiums? Why not just pay the premium directly to the VA right from the start?

Every KBR employee and/or subcontractor is legally required to carry DBA insurance. The premiums, about .10 of $1.00 of wages, are reimbursed. But the injured can't get care.

AIG is the carrier for KBR. So, DBA looks like it's operating as a big cash cow for AIG. Money in, no money out.

Who Cares?
By Margaret Downing, August 11, 2005

Celester Hall went to Afghanistan to help the troops and make his fortune. He came back deaf, in diapers and looking for benefits. [...]

She applied for workers' comp through Service Employees International, Inc. KBR contracts with the insurance company AIG WorldSource to handle international claims. One of AIG WorldSource's Dallas-based adjusters, Joseph Johnson, turned her down, writing to her in a letter that Celester wasn't eligible for coverage. She started looking for a lawyer.

By late May, she and her husband were in a Houston courtroom with attorney Lewis Fleishman arguing that SEII should be covering the medical bills, which by then totaled more than $100,000.

Contractor deaths up 17 percent across Iraq in 2007
By David Ivanovich, Houston Chronicle, February 9, 2008

The number of civilian contractors reported killed in Iraq jumped 17 percent in 2007 and accounted for more than one in four deaths associated with the U.S. occupation last year.

In a year when President Bush sent 30,000 additional troops into Iraq in what's been called the "surge," at least 353 civilian contractors working for the U.S. government were killed, up from 301 in 2006, Labor Department records show. [...]

From the start of the war in March 2003 through Dec. 31 — the latest figures available — 1,123 civilian contractors are known to have died in Iraq, according to the U.S. Labor Department.

Note: Each of the 1,123 contractors reported by the Dept of Labor were eligible for Defense Base Act benefits. Anyone want to guess how many MORE contractors were killed but were not eligible, and therefor, not counted? I know of two from 2003.