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Tuesday, March 11, 2008
"Contractor" Classification Worth Over $190 Billion to Blackwater
The Boston Globe:
In letters to the Internal Revenue Service, the Small Business Administration, and the Labor Department, [House Oversight Committee Chairman Henry] Waxman, Democrat of California, questioned Blackwater's classification of its workers as independent contractors instead of employees. That designation, which the government has questioned in the past, allowed the company to obtain $144 million in contracts set aside for small businesses and avoid paying as much as $50 million in withholding taxes under State Department contracts, he said.
Blackwater's classification scheme represents about 15% of the $1.25 billion it has received from the government since 2000.
Contracts to Blackwater USA at FedSpending.org through Q2 2007.
Posted by Craig Jennings
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