TAXES, Accenture (formerly Arthur Andersen)

  1. President Bush has said he wants to "make sure that the system is fair for those of us who do pay taxes" and that "we want everybody paying their fair share." But the president went out of his way to lavish a massive government contract on a major campaign contributor, even though it specifically moved operations offshore to avoid paying U.S. taxes.

    According to news reports, the Bush administration gave a $10 billion contract for the Department of Homeland Security to Accenture (formerly Arthur Andersen), despite the company having recently moved its official headquarters to Bermuda to avoid U.S. taxes.

    The contract was awarded less than two years after the White House and its allies in Congress gutted a House-passed provision that would have banned awarding homeland security contracts to corporations who exploit tax loopholes, move offshore, and avoid U.S. taxes.

    At the time, Accenture lobbied to eliminate the provision, hiring GOP political consultant "and Bush family confidant" Charlie Black to lobby on its behalf. Accenture executives have given President Bush more than $68,000 in campaign contributions since 2000.

    Of course, the president has made a practice of paying lip service to the problem of corporate tax evasion, while actively opposing solutions behind the scenes. ABC News reported that when Congress was considering bills to curb the practice in 2002, Bush "said the Bermuda loophole should be closed" but refused to support "any of the bills that would do so" and then allowed his allies to kill the legislation. es)&txtZip=&txtEmploy=Accenture&txtCand=Bush&txt20 04=Y&txt2002=Y&txt2000=Y&Order=N
    Congressional Quarterly Weekly, 12/6/02.
    ABC News, 07/12/02.
    Baltimore Sun, 6/9/02
  2. 3 Comments

  3. by   pickledpepperRN

    House votes to allow contract for Accenture

    June 17, 2004

    WASHINGTON -- A drive to block a massive federal contract awarded to Accenture LLP for tracking visiting foreigners was all but scuttled Wednesday by the House, despite arguments that the company should be punished for avoiding some U.S. taxes.

    The near party-line 234-197 vote by the GOP-led chamber meant that language disallowing the contract -- valued at up to $10 billion over the next decade -- was likely to be removed later this week from a $32 billion bill financing the Homeland Security Department.

    The Accenture contract would benefit a wide array of subcontractors and is strongly supported by the business community and the House Republican leadership.
    Accenture opponents say the company, which has major operations in Chicago, shrunk its tax bill by moving its headquarters to Bermuda. But they acknowledged they face an uphill fight and were hoping the Senate would keep the issue alive.

    ''These companies have an obligation to the United States of America to pay their taxes,'' said Rep. Rosa DeLauro (D-Conn.). ''If you want to feed at the public trough, you have to pay your taxes.''

    The Accenture vote was no surprise; similar provisions have been killed or weakened over the past two years. The bill was expected to retain language barring the Homeland Security Department from entering future contracts with companies headquartered offshore.

    Rep. Jim Kolbe (R-Ariz.) said DeLauro's amendment was designed to ''score some political points'' and was picking on a company that pays all the taxes it legally owes.
  4. by   pickledpepperRN
    Why should the ENRON accounting company get paid with tax money?
    THEY avoid taxes!
  5. by   elkpark
    This is no surprise -- the Shrub administration has been v. clear from day 1 about their top priority, to help their corporate buddies make lots of money.