U.S. defense contractors’ growing use of offshore (outsource)
subsidiaries from 2003 to 2008 allowed the Defense Department to save money on
contracts but also resulted in the loss of U.S. tax revenue and unemployment
benefits for some U.S. workers, according to a new report from
the Government Accountability Office.


Practical Guide for IT Outsourcing a
HandiGuide


border=0 alt="" src="http://www.it-toolkits.com/images/buttons/Order.gif"
width=94 height=22> border=0 alt=""
src="http://www.it-toolkits.com/images/buttons/DownloadTableofContents.gif"
width=209 height=22>


The 29 largest publicly traded defense contractors increased
their use of offshore subsidiaries by 26 percent from 2003 to 2008, the report
states.


Those subsidiaries helped the contractors reduce taxes, in part
by avoiding Social Security and Medicare payroll taxes for U.S. workers hired at
the foreign subsidiaries, GAO auditors said.


About a third of the contractors also decreased their effective
U.S. corporate tax rates in 2008 in part through the use of foreign affiliates,
lower foreign tax rates and indefinite reinvestment of foreign income outside
the United States.

Resources
Post Your Resume to 65+ Job Sites
Resume Service

Post to Twitter Tweet This Post