Fair Share Act

[lonestarnot]

Dear Friends:

Last week, on April Fools' Day, we told you about government contractors that trick American taxpayers out of billions of dollars by not paying their taxes -- and what we're going to do about it. We've received almost 4,000 signatures to help push our bill forward. Thanks for your help.

Of course, we all know that it's against the law to dodge taxes -- whether you're John Doe or John Doe Enterprises. That thought might be on your mind as you hurry to file your taxes before the deadline.

Kellogg, Brown, and Root (KBR), a spin-off of Halliburton isn't worried about the deadline. The contractor avoids paying taxes by pretending to be a foreign company (1), even though they provide essential government services to our troops in Iraq.

Click here to tell your representatives and senators to co-sponsor the Fair Share Act, to end this still legal practice.

http://www.uspirg.org/action/tax-budget/fair-share?id4=ES

KBR is by far the largest private contractor operating in Iraq, receiving an estimated $16 billion a year in defense contracts that they've never had to compete for, and last month it was revealed that they've been avoiding paying taxes, Social Security, Medicare, and unemployment benefits for years.

KBR pays employees through two shell companies in the Cayman Islands, posing as a foreign company while receiving enormous contracts from the U.S. military.

Incredibly, KBR acknowledged using these tax tricks, claiming they "keep war costs down." This from the same company that the Pentagon says has overcharged the government for $279 million in unsupported and questionable expenses. (2)

So, the lead contractor in Iraq receives billions in no-bid contracts, grossly overcharges the government, and uses shell companies to avoid paying millions in taxes and benefits for its employees? Where's the punch-line?

The Fair Share Act, recently introduced in Congress, would prevent government contractors from using offshore tax havens to avoid paying taxes. We need to show Washington that, this tax season, Americans expect tax-dodging contractors to be held accountable for their tricks.

Click here to tell your representatives and senators to co-sponsor the Fair Share Act.

http://www.uspirg.org/action/tax-budget/fair-share?id4=ES

Thank you in advance for taking action,

Diane E. Brown
Arizona PIRG Executive Director
[e-mail]
http://www.arizonapirg.org

Read the Boston Globe story that blew the top off the KBR-Cayman Islands connection: http://www.boston.com/news/nation/washington/articles/2008/03/13/bill_would_close_offshore_loophole

More info on KBR overcharges: http://www.contractormisconduct.org/index.cfm/1,73,222,html?CaseID=34