Sen. Kerry queries Bush admin on Blackwater taxes

By Kevin Drawbaugh
Reuters

U.S. Sen. John Kerry on Tuesday asked the Bush administration about any role it played in the possible evasion of nearly $32 million in taxes by Blackwater USA, the private security firm already under scrutiny over the killing of Iraqi civilians.

"The Bush administration can't hide Blackwater in the shadows anymore -- it's time to bring all of their dealings to light," Kerry, a Massachusetts Democrat and chairman of the Senate's Small Business Committee, said in a statement.

Kerry sent a letter to the Small Business Administration (SBA), which his committee oversees, expressing concern that Blackwater relied on an SBA decision for tax purposes.

"The SBA must explain to the American people what role they may have played in helping Blackwater avoid paying $31.8 million dollars in taxes," Kerry said. "The SBA should not be involved in tax-related decisions."

An SBA spokeswoman said the agency had just received the Kerry letter and had no immediate comment.

Blackwater faced questions on Monday when another Democratic lawmaker accused it of "significant tax evasion."

House Oversight and Government Reform Committee Chairman Henry Waxman, a California Democrat, alleged that Blackwater failed "to withhold and pay millions of dollars in Social Security, Medicare, unemployment and related taxes."

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