Service Employers International (a unit of KBR) employing 20,000 workers in Iraq and Overseas Administrative Services employing 1,020 workers in Iraq are just two examples of tax haven companies.

KBR from 2004-2006 earns $16,059,282,020 according to the Boston Globe.  What they did not pay was social security, unemployment, Medicare, or workers comp on any USA citizens whom worked for them.  A large segment of the payroll expenses are for USA citizens.  This resulted in about $500,000,0000 is lost taxes to the USA.  KBR has said the savings were passed on to the military.  We all know what that means.  The honest taxpayer is paying for those benefits that the employee will need in the future.  KBR is incorporated in the Cayman Islands.  This is considered a tax haven for companies to avoid paying taxes.   It is important that the IRS fully vent whether the company is a shell corporation and bring all punish to bear.  There has been lots of publicity of the IRS investigating nonprofits and their appropriate use of their status and self-dealing.  I have not read of any investigation by the IRS on these companies in the tax havens.  There are millions to recover.

I propose that any recovery from these companies be set in a trust fund for the future use of the military service men and women to help them with job training, college tuition, and medical expenses.  There are tens of thousands of them and they need to have the US government’s long-term commitment.  The equal access of standard of treatment for all of the returning soldiers requires this and it must be placed on the backs of those corporations that have used the war to profit illegally.

This entry was posted on Tuesday, March 18th, 2008 at 12:01 am and is filed under Corporate Giving, Business Plan, Program Development, Strategic Planning, Consulting. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.