Senate OK's bill barring contractors from avoiding tax
Some had hired via offshore firms
By Farah Stockman
Globe Staff / May 23, 2008
WASHINGTON - The Senate yesterday passed by unanimous consent a bill prohibiting federal contractors from avoiding Social Security and Medicare taxes by hiring workers through offshore shell companies.
Earlier this week, the House of Representatives also voted unanimously to ban the practice, used by former Halliburton subsidiary KBR to avoid payroll taxes for more than 10,000 American workers in Iraq.
The bill, which appears to have veto-proof support, now goes to President Bush. The White House has not indicated whether he supports it.
Kerry drafted the payroll tax provision after The Boston Globe reported in March that Houston-based KBR had avoided hundreds of millions of dollars in payroll taxes for 10,000 American employees in Iraq by hiring them through shell companies based in the Cayman Islands.
The only real answer is to shut down the Pentagon and to not replace it with anything. End all militarism.