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{ Henry Waxman } Democrat Requests Blackwater Inquiry
AP via SFGate ^ | 3/10/8 | ANNE FLAHERTY, Associated Press Writer

Posted on 03/10/2008 10:23:45 AM PDT by SmithL

A senior House Democrat has called for a wide-ranging federal investigation into Blackwater Worldwide, alleging that the private security contractor violated tax and labor laws by classifying its guards as independent contractors rather than company employees.

Blackwater spokeswoman Anne Tyrrell said the charges are "completely without merit."

"Blackwater's classification of its personnel is accurate, and Blackwater has always been forthcoming about this aspect of its business with its customer, the U.S. government," she said in an e-mailed statement on Monday.

But Rep. Henry Waxman, who chairs the Committee on Oversight and Government Reform, says Blackwater's claims on its business status "appear dubious."

In letters sent Monday, Waxman asked the Internal Revenue Service and the Labor Department to investigate whether Blackwater defrauded the government of tax revenue and violated labor laws. Waxman also asked the Small Business Administration to determine whether Blackwater violated federal regulations by claiming it was eligible for small business preferences.

"The implications of Blackwater's actions are significant," wrote Waxman, D-Calif., in a memorandum to his colleagues on the panel. "Committee staff have estimated that Blackwater has avoided paying or withholding up to $50 million in federal taxes by treating its guards as independent contractors rather than employees."

(Excerpt) Read more at sfgate.com ...


TOPICS: Extended News; Government; Politics/Elections
KEYWORDS: 110th; blackwater; defensecontractors; tyrrell; waxman
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1 posted on 03/10/2008 10:23:45 AM PDT by SmithL
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To: SmithL

Pig-nosed, showboating, left-wing @$$hole...


2 posted on 03/10/2008 10:29:25 AM PDT by quark
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To: SmithL
If the guards are paid on a 1099, and the income is reported, what's the problem?

The IRS has published a “test” for independent contractors. http://www.twc.state.tx.us/news/efte/appx_d_irs_ic_test.html

And lastly, what is the motivation behind a member of congress requesting an tax classification question of Blackwater. Could it be a fishing expedition ... hmmm, I wonder

3 posted on 03/10/2008 10:30:02 AM PDT by taxcontrol
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To: SmithL

Nostrilitis Waxman is worse than McCarthy ever dreamed of behaving...


4 posted on 03/10/2008 10:31:51 AM PDT by Snardius
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To: SmithL

Another Dem senator (or maybe a congressman) is launching an investigation of Kellog Brown & Root this week. It’s some kind of coordinated blitz apparently.


5 posted on 03/10/2008 10:33:25 AM PDT by Yardstick
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To: SmithL

I’m willing to propose an exchange: a hearing on Blackwater for a hearing on Whitewater.


6 posted on 03/10/2008 10:33:56 AM PDT by twigs
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To: Yardstick

The Dems do this. We need to be alert and look for these patterns. They did this in the last election and the only person I heard even refer to it was Michael Medved. They targeted local congressional Republicans running and defeated a lot of them. Weldon in PA was defeated in this strategy run from the top.


7 posted on 03/10/2008 10:35:56 AM PDT by twigs
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To: SmithL

8 posted on 03/10/2008 10:39:24 AM PDT by Vaquero (" an armed society is a polite society" Heinlein "MOLON LABE!" Leonidas of Sparta)
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Shove some nickels in his nose, yank down on his ear, and see if anything of substance comes out of his mouth...and call him a slot machine.


9 posted on 03/10/2008 10:47:53 AM PDT by MagUSNRET
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To: SmithL
More proof that Blackwater is the greatest private security company ever. But can it withstand the power of Congress?
10 posted on 03/10/2008 10:50:03 AM PDT by pnh102
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To: SmithL

The upside to these idiots calling for endless investigations of political enemies is that it keeps them from legislating. Well, on anything but pay raises.


11 posted on 03/10/2008 10:50:41 AM PDT by Billthedrill
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To: Snardius

Nostrilitis Waxman is worse than McCarthy ever dreamed of behaving...”

Does make one wish for the good old days, doesn’t it?


12 posted on 03/10/2008 10:54:45 AM PDT by ridesthemiles
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To: quark
Pig-nosed, showboating, left-wing @$$hole...

Isn't there a movie out about his daughter? I think it's called "Penelope"...

13 posted on 03/10/2008 11:09:25 AM PDT by COBOL2Java ("McCain is a war hero. He's also a useful idiot for the Democrats." - Mark Levin)
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To: SmithL

Don’t these aholes have other things to do besides investigating, investigating, investigating? arghhhh.


14 posted on 03/10/2008 11:10:53 AM PDT by Marysecretary (.GOD IS STILL IN CONTROL)
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To: Vaquero

DADDY!!!!


15 posted on 03/10/2008 11:11:23 AM PDT by Marysecretary (.GOD IS STILL IN CONTROL)
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To: SmithL

This moron has too much time on his hands.


16 posted on 03/10/2008 11:16:26 AM PDT by beethovenfan (If Islam is the solution, the "problem" must be freedom.)
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To: beethovenfan
This moron has too much time on his hands.

He's a Democrat. You don't really expect him to do PRODUCTIVE work, do you? I mean, next you'll be telling me he ought to actually serve his constituents, for heaven's sake!

17 posted on 03/10/2008 11:20:54 AM PDT by COBOL2Java ("McCain is a war hero. He's also a useful idiot for the Democrats." - Mark Levin)
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To: Marysecretary
Like father, like daughter...


18 posted on 03/10/2008 11:24:35 AM PDT by COBOL2Java ("McCain is a war hero. He's also a useful idiot for the Democrats." - Mark Levin)
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To: SmithL
There's probably a lot to like about Henry.

(Give me a week or so and I'll probably discover one.)

19 posted on 03/10/2008 11:25:55 AM PDT by fweingart (Obama-Clinton (A real dream team!))
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To: SmithL
I request a hearing on how much time and taxpayer dollars Waxman is wasting on these frivolous investigations.
20 posted on 03/10/2008 11:32:07 AM PDT by ravingnutter
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