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!!!


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  1. these fucks…

    hey, can you do a story on the money used to care for our veterans? as opposed to the money being given to contractors?

    do some kind of proportionality thing? know what i mean?

    this info should not be isolated unto itself. give a bigger context… how much of our tax dollars… what services are being denied our vets… et al


    • DWG on March 7, 2008 at 03:15

    The republican asshats questioned Obama’s patriotism.  First, KBR gets a ton of no-bid contracts.  Next, there are thousands of complaints of fraud, overbilling, and contract violations, but they still hold on to the contracts.  Next, they move their move their headquarters to Dubai. Now, the final slap at the taxpayers.  This bullshit needs an investigation.  The question is whether the Dems will demand a veto proof majority to start the investigation.  

    Nice post, Jim.

  2. This makes my blood curdle, as well.

    When a company is rotten, it is not usually just a little rotten, it is rotten to the core.

    More than likely there are many more American workers than they are admitting to, first of all.

    What despicable deceit — to arrive in Iraq and then be told you’re working for another company (Overseas Administrative Services or whatever).  To not pay the taxes, Social Security and Medicare taxes of these people working for KBR, these people will be deprived proper credit for their work with KBR and coming up short of all that should have accrued to their social security and Medicare.

    I wouldn’t be surprised if KBR was cheating on paying its company taxes to the IRS, too.

    There should be an across the board investigation of these companies in Iraq, particularly, KBR!

    More putred filth from Cheney’s “babies.”

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