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Death and Taxes

In this world nothing is certain but death and taxes.

- Benjamin Franklin

When it comes right down to it, 'following the money' has often been the most direct path to exposing corruption. It worked back in the late 80s when Sen. Kerry followed the terrorist's money straight to BCCI, and it looks like the Senator has found another opportunity to crack open the door and shine some light by checking into an organization's finances.

Blackwater LLC may have found a way to avoid accountability for the indiscriminate killing of Iraqi civilians, for drawing weapons on our own troops and for weapons smuggling. They may be neck and neck with Halliburton for the no-bid contract championship. In short, they're 'getting away with murder'. Maybe.

Military contractors, or mercenaries if you prefer, have actually lost over a billion of our tax dollars in Iraq. Lost it. And in an astonishing and ironic discovery, it seems that one such company, Blackwater, may be cheating on their taxes. Which, in reality are our taxes. Because we're paying them for all this. Let me put that another way. We've paid Blackwater a billion of our tax dollars, and in return, they're believed to be scamming on their own.

Sen. Kerry queries Bush admin on Blackwater taxes

U.S. Sen. John Kerry on Tuesday asked the Bush administration about any role it played in the possible evasion of nearly $32 million in taxes by Blackwater USA, the private security firm already under scrutiny over the killing of Iraqi civilians.

"The Bush administration can't hide Blackwater in the shadows anymore -- it's time to bring all of their dealings to light," Kerry, a Massachusetts Democrat and chairman of the Senate's Small Business Committee, said in a statement. Kerry sent a letter to the Small Business Administration (SBA), which his committee oversees, expressing concern that Blackwater relied on an SBA decision for tax purposes.

Sen. Kerry's letter to SBA administrator Preston:

October 23, 2007

The Honorable Steven C. Preston
Administrator
U.S. Small Business Administration
409 Third Street, S.W.
Washington, DC 20416

Dear Administrator Preston:

Recently, there have been stories in the press which discuss House Committee on Oversight
and Government Reform Chairman Waxman's concerns that Blackwater LLC has evaded taxes by erroneously classifying workers as independent contractors instead of employees.

Blackwater responded to Chairman Waxman's inquiry with the following: “The U.S. Small Business Administration has determined in an official finding applying the criteria used by the IRS for Federal income tax purpose, that Blackwater security contractors are not employees.

I am concerned that Blackwater is relying on a decision of the Small Business Administration for tax purposes. I am requesting that by November 2, 2007, you send me any determinations that the SBA has made concerning the classification of Blackwater's workers and any other documents that would lead Blackwater to believe that their workers are not employees for tax purposes. Also, please clarify whether the Small Business Administration is making or has made employee versus independent contractor determinations for tax purposes.

Thank you for your timely attention to this matter.

Sincerely,

John Kerry


It wouldn't be the first time killing of innocents went unprosecuted and in the end the perpetrator met justice at the barrel of a pencil. I seem to recall there was a case back in the 20's, when someone who thought he was above the law was finally brought down by a small group of incorruptible investigators. It should have been for any number of violent crimes, but it was for tax evasion. Perhaps not the justice the families of the victims would have preferred, but at least 11 years in jail gave him an opportunity to reflect.

 

A Brief History of Blackwater, LLC

Video Credit: researchris2

Comments (2)

Tax evasion 101 presented by the Bush Administration and available only to friend's of Bush. This appears to be another example of the Bush Administration rewarding the ineptitude of political friends. Bush economics- $32 million dollars for Blackwater and token tax relief for the poor, struggling middle class. Imagine how much children's health insurance $32 million could buy.

Americans, and especially democrats, are hungry for real justice, not that stuff the politicized DOJ under Bush pedals. The people are with you, Senator Kerry, as you dig in your heels and begin your investigation into the back room dealings that have made Blackwater the dangerous and unchecked force it is. We are counting on your vast skills as a prosecutor and investigator, and you can count on us to back you with our voices.

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