AFSCME Privatization Update

Source: By Farah Stockman, Boston Globe, March 6, 2008

Kellogg Brown & Root, the nation's top Iraq war contractor and until last year a subsidiary of Halliburton Corp., has avoided paying hundreds of millions of dollars in federal Medicare and Social Security taxes by hiring workers through shell companies based in this tropical tax haven.

..... A Globe survey found that the practice is unusual enough that only one other major contractor in Iraq said it does something similar.

..... With an estimated $16 billion in contracts, KBR is by far the largest contractor in Iraq, with eight times the work of its nearest competitor.