After media reports confirmed that
Kellogg, Brown and Root and several
other government contractors
had set up sham companies in tax
havens like the Cayman Islands to avoid paying millions in taxes,
NMPIRG took action. And, this
spring, we scored a major victory
for the public, by making sure taxdodging
private contractors are
held accountable. The HEART Act
rewards members of the military
for their service and pays for it
by stopping tax gimmicks from
some of the government’s largest
private contractors.
With our national federation, U.S.
PIRG, we organized a coalition
of consumer, labor, church and
taxpayer groups to urge Congress
to close the loophole that allowed
private contractors to avoid paying
their taxes. Leadership in
both chambers responded, and
a bill closing the loophole was
unanimously approved by both the
House and Senate, and was signed
by President Bush.
“Americans are working hard and
paying their fair share, and we
expect contractors that receive billions
from the federal government
will do the same,” said NMPIRG
Staff Attorney John Krieger.
