If I’m reading it right, Blackwater doesn’t pay taxes on it’s workers, because of how they classify them (i.e. contractor vs. employee).
Even though they’re doing the exact same thing as Triple Canopy, they don’t pay any taxes.
So they always have the low bid on a government contract, while not paying taxes to the government on the money.,
It’s a loophole that, IMO, should be closed.
If it’s an American company awarded an American government contract, why are they allowed to be tax free, simply because of how they word their workers?
Two things: 1) The dipwads at the DoD should have had this worked out before now. 2) Tax-wise, it should be a wash as the taxes not paid by Blackwater should be paid by its contractors.
they pay taxes. It depends on how long they are deployed overseas.
What they do is not uncommon throughout the business world.
Instead of hiring employees and paying benefits and matching payroll taxes, they hire Independent Contractors who are supposed to be responsible for their own taxes and benefits, as well as tools and equipment.
In construction its the difference between hiring painters/drywallers/etc yourself and keeping them on payroll or subbing it out sometimes to IC tradesmen.
Yes, it certainly can get abused, but done properly it has legit uses and benefits to all.
Because that's the way it should be - for all of us. Gotta start somewhere.