American International Group (NYSE: AIG), in yet another act of self-parody replacing the role of traditional comedians, has taken the unusual step of suing the United States government over a tax dispute -- at the same time that the company is holding $150 billion worth of taxpayer money and is set to receive another $30 billion.Apparently that isn't good enough. The Wall Street Journal reports (subscription required) that AIG sued the U.S. over $306 million in taxes, interest and penalties. A company spokesman told the reporter that "AIG is taking this action to ensure that it is not required to pay more than its fair share of taxes."
Right. More than its fair share. As opposed to the American people covering its fair share of losses brought about by atrocious decision made by AIG's highly-compensated leadership.
This whole situation is so incredibly stupid and wasteful. AIG should have the decency not to quibble over $306 million in taxes while it's taking so much government cheese, and the United States government should have the intelligence not to try to collect disputed taxes from a company that's already majority-owned by the U.S.
Think about it: By pursuing this action, the U.S. taxpayer is on the hook for AIG's legal fees and the IRS' legal fees, and whatever ends up happening, the money will be with the U.S. government -- either at AIG or at the IRS. This is a complete waste of time and someone needs to call the whole thing off.
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Reader Comments (Page 1 of 1)
3-02-2009 @ 10:18AM
blogs11111 said...
Maybe they need those extra millions for another spa trip (sarcasm). Seriously I don't understand why the government is propping them up. Is it CDS's (a word I never heard of until this crisis). What were CDS's, were they bets that a company or someone would default? If so who invented them and why were they allowed on Wallstreet? Bets are for casinos, bets aren't investments. Was AIG insuring these bets with money they didn't have and now that the bets went wrong they need money? I don't understand this at all. If they didn't have enough money to cover their bets or pay whatever they insured why were they allow to insure these bets at all? Sounds as if we're propping up bad bets or fraud. Please explain how AIG provided coverage when they didn't have enough money to cover it?
3-02-2009 @ 10:28AM
michele said...
The reason this is being allowed to happen is because AIG is the insurer of our very own politicians, they are the one's that give healthcare to our gov't officials. That is the reason that we have had to pour all this money into this company, so that our politicians would have healthcare!
3-02-2009 @ 10:49AM
Karen said...
Does anyone have the docket information on this suit? Thanks.
3-02-2009 @ 4:25PM
Lynn said...
What a ripoff!! I know someone who works for AIG and they received a big bonus in 2009. Their division is doing well and has been lending money to the division that that is not doing well. The company is big enough to take care of their own without ripping off the government and the taxpayers.
3-02-2009 @ 8:49PM
davis10oregon1 said...
THE OLD FOLKS WOULD SAY " MAN YOU HIT THE NAIL RIGHT ON THE HEAD "
BRO, YOU SHOW `NOUGH SAID A MOUTH FULL OF NOTHING BUT THE WHOLE TRUTH.
" TELL THE TRUTH AND SHAME THE DEVIL ". YOU GO, BRO !
3-03-2009 @ 5:45AM
Barry said...
About all of those companies receiving bail out money are doing similiar things, like extragent parties and outings for employees. Huge bonuses and wages, buying new corporate jets, not making loans to prime the economy, and on and on. You would think there was enough intelegence in congress to know that the bailout is just not working, but its ripping off the tax payers at historic amounts. If not, there must be some under the table money going on with those senators. No one can be consistently this patheticly stupid !!!!
3-16-2009 @ 4:01PM
ValueHuntr said...
For confidential AIG presentation see www.valuehuntr.com