Friday, March 20, 2009

Biting the Hand that Feeds

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

While the American International Group comes under fire from Congress over executive bonuses, it is quietly fighting the federal government for the return of $306 million in tax payments, some related to deals that were conducted through offshore tax havens.

A.I.G. sued the government last month in a bid to force it to return the payments, which stemmed in large part from its use of aggressive tax deals, some involving entities controlled by the company’s financial products unit in the Cayman Islands, Ireland, the Dutch Antilles and other offshore havens.

A.I.G. is effectively suing its majority owner, the government, which has an 80 percent stake and has poured nearly $200 billion into the insurer in a bid to avert its collapse and avoid troubling the global financial markets. The company is in effect asking for even more money, in the form of tax refunds. The suit also suggests that A.I.G. is spending taxpayer money to pursue its case, something it is legally entitled to do. Its initial claim was denied by the Internal Revenue Service last year.
Forget the bonus nonsense. A.I.G. is using our tax dollars to sue us, and since we own 80% of the company, we are, in effect, suing ourselves.

And the defense by A.I.G.?
Asked about the lawsuit, Mark Herr, an A.I.G. spokesman, said Thursday that “A.I.G. is taking this action to ensure that it is not required to pay more than its fair share of taxes.”
Follow along: let's use tax dollars to sue tax payers to ensure that tax dollars are paid back to the tax payers, by the tax payers, using their tax dollars. Or something.

What gall. "Thanks for bailing us out after we ran our company into the ground, and btw, you've been served."

How I love this recession.

No comments: