Vice President Cheney caught aiding an abetting corporate crime

KBR Dodges $500 Million In Social Security And Medicare Taxes In Cheney-Backed Scheme

No private contractor has financially profited from the Iraq war more than Kellogg Brown & Root (KBR), which until last year was a subsidiary of Halliburton. The firm currently has more than 21,000 employees in Iraq, and between 2004 and 2006, received more than $16 billion in government contracts — far more than any other corporation.

Yet KBR hasn’t been passing on these enormous profits to American taxpayers or even its own employees, thanks to a plan that Vice President Cheney helped establish. Today, the Boston Globe reports that KBR has avoided paying more than $500 million “in federal Medicare and Social Security taxes by hiring workers through shell companies” based in the Cayman Islands. A look at the costs to KBR employees:

While KBR’s use of the shell companies saves workers their half of the taxes, it deprives them of future retirement benefits.

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.

As a result, workers hired through the Cayman Island companies cannot receive unemployment assistance should they lose their jobs.

KBR’s practices are extreme, even compared to its competitors. Other top Iraq war contractors — including Bechtel and Parsons — pay Social Security and Medicare taxes for their employees.

The Bush administration has aided this tax dodging. One of KBR’s shell companies is Overseas Administrative Services, which was set up two months after Cheney became Halliburtion’s CEO in 1995. Since at least 2004, the Pentagon has known about KBR’s practices, but chosen to ignore the issue.

"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, a Massachusetts Democrat on the Senate Finance Committee who has introduced legislation to close loopholes for companies registering overseas.

Of course, KBR is more than happy to claim workers as its own in one instance: when seeking “legal immunity extended to employers working in Iraq.”

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

Heather Browne, a spokeswoman for KBR, acknowledged via e-mail that the two Cayman Islands companies were set up "in order to allow us to reduce certain tax obligations of the company and its employees."

http://thinkprogress.org/2008/03/06/kbr-taxes-cheney/
http://www.boston.com/news/world/articles/2008/03/06/top_iraq_contractor_skirts_us_taxes_offshore/?page=1


From Publishers Weekly
Starred Review. Dubose and Bernstein show in this thorough, rollicking career biography that it's Cheney-not the more publicly criticized Donald Rumsfeld, Karl Rove, Condoleeza Rice or President Bush-who is chiefly responsible for the most unpopular aspects of the Bush regime: an imperial executive office and foreign policy; abandonment of democratic ideals (respect for government checks and balances, the Geneva Convention, the Bill of Rights and the Freedom of Information Act); and questionable corporate-government colusion (the secret energy task force, Halliburton's government contracts in Iraq). Tracing Cheney through three White House adminsitrations, six terms in the House of Representatives, and a tour as Halliburton CEO, the portrait that emerges from these pages is both alarming and compelling; like a J.R. Ewing, Cheney proves to be the kind of fascinating figure you love to hate. As obstacles to Cheney's will-Congress, the Constitution, foreign countries, the press, or other politicians-are sidestepped, ignored, or trammeled, Cheney emerges as a classic Machiavellian; in Cheney's case, it appears that the end which justifies the means is power, pure and simple. Against Cheney, idealistic liberals who believe that an appeal to democratic ideals, the Constitution, or basic decency will work with this administration emerge here as painfully naïve; unfortunately, this realization has only settled in after the damage was already done. Dubose and Bernstein present a sobering and darkly flattering expose of the reclusive power behind the throne, and a grim vision of what his legacy may be.