True....and a goverment has a fiduciary duty to its citizens to ensure its tax dollars are well spent. Allowing a company to exepmt itself from tax, and exept it's employees from paying SS or accruing SS or Unemployment benefits while enjoying liability protection legislation that is put in place for US companies, and being party to multi billion dollar sensitive, strategic military contracts doesn't meet that test. If KBR wants to be offshore -- fine. But stay away from taxpayer funded contracts then.
you asked me how they create jobs, they create jobs when there's work, including wars, and construction, like minute maid park. I'm not saying they wouldn't be in business without war, but let's not ignore the obvious. now before you step a little further, read the article, because their claim is that tax saving are passed on to good ole uncle sam
The article in the paper this morning says that the contract allows KBR reimbursement for all employee expenses so if they did work from the US it would cost the DOD more money. So for the government it's wash because they aren't collecting taxes and they aren't paying taxes. For KBR it's a wash because if they had to pay the taxes they would just pass them through to the government. The emplyees are shorting their own SS record but they are compensated at a higher rate now. But then there is the issue of Medicare. They will still collect at the same rate even though they are not paying into the system now. So if every thing else is equal, why not just pay them on US soil? I don't see the advantage to KBR to be perceived as even yet more evil. (I'll bet KBR contractors end up collecting medicare at a higher than average rate due to stress and exposure.... unless they end up dying eary)
Not necessarily a wash Dubious. DoD pays less.....but the foregone revenue would have gone to other departments. Plus I'm guessing there are corp tax advantages to KBR that, again, do not come from the DoD budget. So even if it was a wash....(which is highly unlikely) at minimum, the DoD budget is understated.
