Still a Loophole In The Legislation?
In an AP article Senators urge crackdown on overseas tax havens dated July 25, 2008 it discusses the huge financial damage these offshore shell companies such as KBR’s SEII do to the Medicare and Social Security system not to mention how they abuse the employees.
Here is a quote from the article and then I will express my concerns.
Last month, President Bush signed legislation that prevents defense contractors, such as KBR Inc. and Combat Support Associates, from avoiding Social Security and Medicare taxes by setting up subsidiaries in the Cayman Islands.
This quote states “legislation that prevents defense contractors”. In Iraq, KBR as two clients. The Department of Defense (DOD) with it’s LOGCAP contracts and The Department of State (DOS) with it’s USMI contracts. 1000’s of KBR/SEII employees have worked under the DOS contracts. Will this legislation apply to that? Will this legislation apply to any DOS contracts anywhere in the world? Such as the billions we will be spending on New Embassy construction around the world and the 1000’s of US construction workers they will employ? Does this apply to ALL DOD contracts around the world or just war zones?
I am trying to find information on this legislation. I welcome any of you really really smart people to email with info. Because if this legislation is for DOD contracts only…..the President just “put a bandaid on a brain tumor” and WE NEED TO FIX THAT!!!