Contractor tax avoidance costs government more than any savings it brings
Evidence
But a Boston Globe investigation noted that the maneuver “results in a significantly greater loss in revenue to the government as a whole” while giving KBR a competitive advantage over companies that are not using the loophole. The use of shell companies not only lowered KBR’s contributions to the Social Security and Medicare trust funds, but also meant that its employees could not receive unemployment benefits if they lost their jobs because they were technically employed by a foreign corporation. Robert McIntyre, the director of the advocacy group Citizens for Tax Justice, told the Globe, “The argument that by not paying taxes they are saving the government money is just absurd.” — David Vine, Base Nation_ How U.S. Military Bases…, 727
Categorization
Category: Causal Relationships