Monday, October 22, 2007
It's Not Just Waxman Who is Sick of Blackwater
The Secretary of Defense's suggestions for oversight seem to have had gained some traction.
- A panel recommended that the U.S. government impose unified control over private security guards working for the U.S. in Iraq, an idea already floated by Defense Secretary Robert Gates, The Associated Press has learned.
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Under U.S. law, companies must pay Social Security and other federal taxes on their employees. But unlike other security companies operating in Iraq, Blackwater says the guards it trains, equips and deploys to Iraq and elsewhere are independent contractors hired directly by the federal government. "By classifying its armed guards and other personnel as independent contractors instead of employees, Blackwater has apparently evaded withholding and paying these taxes," Waxman, D-Calif., wrote in a letter to Blackwater chief Erik Prince.
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