Blackwater, Like Al Capone before them, may have met their match in the Treasury Department

Tax fraud is nothing new to the wonderful world of “free market” capitalism. Let me go out on a limb and say that it is nearly as popular in the sound proof cubicles of America’s corporations as Krispy Kreme donuts and fantasy football.


For quite some time now our good corporate “super-citizens” have been perfecting the art of not paying their fair share. That being said, what was once the art of stealing from the coffers of State and Federal government – and don’t kid yourself, starving the machinery of the U.S. government equals theft from her citizens and is stealing of the highest order – has been perfected as science through the willful guidance of the conservative ideologue and his Democratic party codependent.

What began with Reagan and was continued in earnest under both George H.W. Bush and Bill Clinton has now been wrapped in Old Glory and injected with a Barry Bonds sized shot of steroids under George W. Bush.

In early 2006 we learned that Halliburton, the Defense leech formerly run by Vice President Dick Cheney, was planning on moving it’s operations outside the reach of the IRS to Dubai. This announcement came after Halliburton posted 2006 profits of $2.3bn on revenues of $22.6bn all skimmed from no bid and cost-plus contracts paid for by the American taxpayer.

Hurry, run away before anyone figures out that we are robbing them.

But if you thought that was bad, and how could you not, you will want to grab a chair and small paper bag (to either help with the hyperventilating or stow the puke) for this one.

While investigating the North Carolina mercenary for hire company Blackwater, Rep. Henry Waxman dug up this stinker:

The issue came to the attention of the IRS when a Blackwater guard working in Afghanistan complained that the company had classified him as an independent contractor. The IRS said Blackwater’s classification was “without merit” and ruled in March that the man was an employee.Blackwater agreed to pay back wages and other compensation to the man, but on condition that he not talk to any politician or public official about the company.

“THE UTMOST PROTECTION AND NONDISCLOSURE OF CONFIDENTIAL INFORMATION IS OF CRITICAL IMPORTANCE AND IS THE ESSENCE OF THIS AGREEMENT,” the settlement agreement stated in capital letters. Waxman released it after obtaining it by subpoena from Blackwater.

“This nondisclosure agreement is abhorrent on its face,” Waxman wrote Monday to Blackwater founder Erik Prince. “It is deplorable that a company that depends on federal tax dollars for over 90 percent of its business would even contemplate forbidding an employee to report corporate wrongdoing to Congress and federal law enforcement officials.”

That’s right boys and girls, not only are these guys trigger happy, unaccountable and coming to a war near you, they have also now joined the ranks of those good corporate “super citizens” that have chosen to rob the country that feeds them.

November 2008 can’t come soon enough.

3 Responses to “Blackwater, Like Al Capone before them, may have met their match in the Treasury Department”

  1. At this point, I’m kinda shocked that we haven’t discovered Blackwater to be a subsidiary of Haliburton… it would be just too… too… expected.

  2. They will all end up being a subsidiary of Wal-Mart anyway… LOL

  3. mick says:

    I’m glad Waxman – and you – picked up on this. I’ve been meaning to write about it for some time. It’s a scam to avoid taxes and responsibility for employees while maintaining control over them, and it has become very popular again in the Bush years (there’s an explanation of what it is and how it works here). It started in the 60’s but the IRS all but wiped it out with vigorous enforcement in the 70’s It made a comeback under Reagan when the IRS quit enforcing it but then the states stepped in and shut it down again. It started a real resurgence – its third; these people never give up – a few years ago. Two years ago, when both the Feds and the state refused to clamp down, FedEx employees sued to prevent the company from using the designation on drivers. As far as I know, that suit is still in court and FedEx is still shafting both the treasury and its own employees.

    It doesn’t surprise me at all that somebody like Prince would stoop to it.

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