As reported in an earlier Daily Mislead,1 the Bush administration awarded a $10 billion Department of Homeland Security contract to Accenture, a company that based its headquarters in Bermuda to avoid paying U.S. taxes. The move defied the President’s promise to make sure everyone is “paying their fair share.”2 As if the Administration’s actions weren’t enough, yesterday the White House’s Congressional allies defeated legislation that would have stopped the contract.
According to the Chicago Tribune, Congress “bowed to Republican leaders” and rejected legislation sponsored by Representative Rosa DeLauro (D-CT) that would have prevented the contract from moving forward.3 Despite proponents of the bill noting that Accenture “has shrunk its tax bill by moving its headquarters to Bermuda,”4 the White House’s allies defeated the legislation on a party line vote.
The General Accounting Office has cited Accenture for using offshore tax havens.5 Because of the GAO’s report, at least one state has had the courage to do what Congress and the White House refuse to do. In May, Illinois held up a $2 million state contract6 to the company because of its tax behavior. In its defense, the company denies getting serious benefits from moving offshore. But, according to a June 1 Bloomberg News report, Accenture’s tax liability decreased7 while its U.S. earnings increased in 2002 and 2003.
- “Bush Gives Contract to Tax Traitor/Campaign Donor “, Misleader.org, 6/02/2004.
- Presidential Remarks, WhiteHouse.gov, 4/15/2004.
- “House reverses course, won’t bar Accenture security contract“, Chicago Tribune, 6/17/2004.
- “House votes to allow contract for Accenture“, Chicago Sun-Times, 6/17/2004.
- “GAO concludes Accenture, others, use tax havens“, Washington Technology, 10/03/2002.
- “Hynes Blocks Payments To Overseas Company, Asks For Policy Ruling“, KSDK.com, 5/03/2004.
- “Contractor vows to continue work on $10 billion border system“, Government Executive, 6/10/2004.