But They Wear Flag Pins

Today's Boston Globe contains an editorial concerning the war-profiteers at the Pentagon's favorite private contractor, KBR. It also rather quietly notes KBR's history as part of Halliburton, once led by Vice President Cheney.

FOR YEARS, companies more interested in profits than patriotism have registered overseas or used foreign subsidiaries to avoid US taxes. Now a major Pentagon contractor once managed by Vice President Dick Cheney is using Cayman Islands shell companies to help it and its workers escape US payroll taxes.

KBR, the largest private contractor for the Pentagon in Iraq, has two shell companies in the Caymans, that, for bookkeeping purposes, employ about 10,500 Americans in Iraq. Because the companies are offshore, neither KBR nor the workers must pay Social Security and Medicare taxes, allowing the company and its workers to avoid paying about $100 million a year, according to Globe reporter Farah Stockman. ...

When KBR set up the second of its two shells in the Caymans, it was still owned by Halliburton. Halliburton's chief executive then was Cheney. His office referred inquiries into the matter to Cheney's personal lawyer, who has not replied to inquiries from the Globe.

A KBR spokeswoman said the company does not save money by avoiding the taxes, because its contracts call for the Pentagon to reimburse it for all its employee costs. But evading the payroll taxes gives KBR a competitive edge when it bids against other contractors in Iraq. [Emphasis added]

How nice.

Back in the day, war-profiteering was considered treason and a crime. I guess those days are gone.

320 days.