Reluctant Politician

David Shepardson wrote a story for The Detroit News recently regarding “an $836 million plan to prepare 90 former General Motors Corp. sites for new economic life.”

While the initial bailout of GM was approved during Pres. George W. Bush’s administration, the newest plan as proposed by President Barack Obama will allocate $536 million towards to the cleanup of GM properties across 14 states. Correction, let’s make that ‘former properties of GM’ as the places in question are production plants, other buildings and vacant land that GM divested itself of through bankruptcy in 2009.

The funds for the cleanup will be coming from $1.175 billion allocated last year by the U.S. Treasury to ‘wind down the old GM.’

I’m not thrilled that taxpayer money is being used to finance the bankruptcy and reorganization of a major U.S. corporation such as GM. But so be it. I am a little less upset that the EPA will use funds to cleanup and demolish some of these toxic sites.

With that said, I do take offense to the apparent fact that of the $836 million proposed in the plan, nearly $300 million is being set aside for such things as paying property taxes on these ‘bad assets’ of GM. The State of Michigan alone is seeking $114 million in unpaid taxes on these properties within their borders.

I see no way in which it is proper for hundreds of millions of dollars collected from taxpayers all across America should be used to pay back taxes owed by a corporation. If the states want their taxes, then let them take possession of the properties for which back taxes are owed. Let those states in question have the Feds spend the $500+ million on cleanup and then those states should be free to sell them to the higher bidder, or even keep the properties for public use.

Let the EPA do their job, but I see no rational reason to use federal revenues to compensate a state for lost property tax revenue from a public or private corporation. This action may be only the start of a doomed ride down a slippery slope. If the federal government continues with such a line of action, how long will be it be before the states’ coffers are flush but the country as a whole is bankrupt?

To read Shepardson’s original article please visit http://bit.ly/GMtaxes

I am left wondering how many more ways A.I.G. can find to piss off the American public even though we, through the Federal Government, own 80% of the company?

I simply can not believe that AIG is suing for return of back taxes. We gave them nearly $200 million and they want us to foot the bill to fight both sides of a legal battle for $305 million more. In my opinion it is time to cash in our chips (ownership rights) and replace that entire Board of Directors.

Correction .. It is almost $200 BILLION we gave them so far. So easy to get the numbers wrong with the way new high points keep getting thrown out there. Remember when we thought the deficit was bad at hundred of millions, then billions and now were are up to trillions? Keep your eyes out for the use of the quadrillion.

The simple fact remains that these people are only employed because of our $200 billion bailout. And then they have the actual gall to sue the Feds for $305 million more, while forcing us to pay the legal bills both for A.I.G. pursuing the case, AND the Government defending against the suit! I’ve come to discover that there are dumber people than politicians … A.I.G. executives.

Yes, I did discuss the bonuses in an earlier post a few days back. Yes, there were contracts stipulating bonuses would be paid and the government was aware of these contracts. Could they have been renegotiated? Most likely. Were they ironclad contracts? Unlikely as few contracts don’t have a weakness that can be exploited.

This posting though is about the fact that AIG is suing for repayment of back taxes. A situation where the greedy nature of those in charge continues unabated and we the people are forced to foot the bill for both the claimant and the defendant. An asinine proposition to say the least.

Please feel free to read the original story that inspired this post:

A.I.G. Sues U.S. for Return of $306 Million in Tax Payments

By Lynnley Browning (New York Times)

http://nyti.ms/aKv15y

The Bank of America accounts homepage on their website now has a ‘How much will you need to retire?’ calculator where you answer six simple questions and they give you back six simple answers.

Now the first thing that comes to mind is how stupid do they think I am? I’m suppose to trust their calculations of the money I need to put away for retirement (preferably with them I assume) so that I will have enough to live on once I reach my determined retirement age?

Really, these are the same people who could not do arithmetic well enough to avoid begging the Federal Government for BILLIONS of dollars to bail them out of bad investment deals that led to the near collapse of the world’s financial system.

Yes, these are the people I want giving me advice on how much money I need as a safety net in order to be liquid in the future!!!

OMG!!!! ^&%&*^$%*^&$%#

AIG is about to pay $100 million in bonuses to executives in the division that wrote trillions of dollars’ worth of credit-default swaps – the very same thing responsible for our financial mess!

“We cannot attract and retain the best and the brightest talent to lead and staff A.I.G. businesses if employees believe their compensation is subject to continued and arbitrary adjustment by the U.S. Treasury.”

BEST AND BRIGHTEST!?! AT WHAT? BEING SNAKE OIL PEDDLERS!! ——

Not even three hours since I saw the story and the amount has risen to $165 million in bonuses which have already been paid out to these financial ‘wizards.’

You know what, give me nearly $200 billion dollars and responsibility for trillions more and I’d have a tough time spending it all much less making it disappear into thin air like A.I.G. has.