Bush’s Praetorian guard: tax cheats?
Rep. Henry Waxman Levels Tax Fraud Allegations Against Blackwater
WASHINGTON — Rep. Henry Waxman has leveled new accusations against embattled Iraq security contractor Blackwater USA, saying the firm appears to be conducting a “tax scheme” to avoid paying millions of dollars to the federal government in payroll taxes, Social Security and Medicare benefits.
The latest allegations stem from a complaint filed by an unnamed former Blackwater worker that turned up as part of the oversight committee’s investigation. Blackwater — unlike its peer companies, DynCorp and Triple Canopy — classifies its workers as independent contractors rather than as employees. Under IRS rules, employers generally have to withhold payroll taxes, Social Security and Medicare payments from employees — but not for independent contractors.
