Senate OK's bill barring contractors from avoiding tax

[suffragette]

Source: Boston Globe

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.

Senator John F. Kerry, a Massachusetts Democrat who cosponsored the bill with Senator Barack Obama of Illinois, said the money gained by closing the payroll tax loophole will help pay the cost of a tax relief package for veterans that was also included in yesterday's bill.

Read more: http://www.boston.com/news/nation/washington/articles/2008/05/23/senate_oks_bill_barring_contractors_from_avoiding_tax/

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What an appropriate way to approach this. Close the onerous loophole and use the money gained for needed assistance to veterans.

[annabanana]

1. It will be interesting to watch this..

If he vetoes this one.. we will see exactly which repugs are nervous and which ones aren't.

[suffragette]

4. This was constructed and even named well

Heroes Earnings Assistance and Relief Tax Act of 2008, so the acronym is HEART.

It also helps volunteer firefighters, Peace Corps and Americorps.

Looks like no one voted against it, so yes, it will be interesting to see what Bush does. I'm sure just given that Kerry and Obama teamed up for this and that it messes with his buddies, KBR, etc. this one is giving him heartburn.

[DCKit]

2. How/Why are these Offshore Companies even Eligible for Federal Contracts? n/t

[Indenturedebtor]

3. Heh I take it you already know the answer to that question...

I am more proud of Obama every day!

Thank you Obama for giving me hope again! :hug:

[1776Forever]

5. Great news - maybe we will get a few Billion back from the 24 Billion they lost!

:patriot:

Good job Sen. Kerry and Sen. Obama!

You both rock!!!!!

[Indenturedebtor]

6. Yes Kerry of course deserves credit as well!

Doubtless he would have made a great president :salute: