Congress acts to close one of the more ridiculous tax loopholes being exploited by some of the biggest war profiteers:
The Senate yesterday passed by unanimous consent a bill prohibiting federal contractors from avoiding Social Security and Medicare taxes by hiring workers through offshore shell companies.
Earlier this week, the House of Representatives also voted unanimously to ban the practice, used by former Halliburton subsidiary KBR to avoid payroll taxes for more than 10,000 American workers in Iraq.
The bill, which appears to have veto-proof support, now goes to President Bush. The White House has not indicated whether he supports it.
Of course, nothing's ever done until it's signed into law. And one never knows whether or not this president is crazy enough to veto something like this, the bill's unanimous support notwithstanding. And truthfully, even its enactment into law isn't the end-all, be-all it used to be back when we respected the rule of law, and signing a bill meant signing all of it.
I mean, isn't it rather amazing that there even has to be a sentence in there indicating that the White House's support for a bill that ends some shady tax avoidance by the biggest war profiteers around and uses the revenues to provide tax relief to veterans is still up in the air?
But Schoolhouse Rock-wise, this has to be noted as a good thing.
Of course, no good bill can go unsubverted by corporate profiteers for long:
John Krieger, tax and budget attorney at US PIRG, said he expects the bill to be signed into law in the coming days.
"There has been no threat of veto issued by the White House, and it looks like it would definitely withstand a veto anyway, since it was unanimous in both chambers," he said. Still, he said, he believes contractors will search for ways to avoid paying Social Security and Medicare taxes for employees overseas, predicting that once the bill is signed into law, some companies will try to classify the employees as independent contractors, a move that would place the sole responsibility for paying those taxes on the worker.