Jesus... U.S. Gave Up Billions In Tax Money In Deal For Citigroup's Bailout Repayment - WaPo

[WillyT]

<snip>

The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal announced this week to wean the company from the massive taxpayer bailout that helped it survive the financial crisis.

The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and a few other companies partially owned by the government. As a result, Citigroup will be allowed to retain billions of dollars worth of tax breaks that otherwise would decline in value when the government sells its stake to private investors.

While the Obama administration has said taxpayers are likely to profit from the sale of the Citigroup shares, accounting experts said the lost tax revenue could easily outstrip those profits.

<snip>

Link: http://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504534.html

:wtf:

[ixion]

1. what is it going to take for people to realize:

the government does not serve We, the People, the US taxpayer. It serves the interests of the well-heeled folks of the Investment Banking sect.

[Tansy_Gold]

2. some time ago I might have been shocked at this.

Today I'm Captain Renault, shocked, shocked I tell you. Not.



TG2102

[dysfunctional press]

3. the 'change we can believe in' just keeps on a-comin'...

one of the easiest job of 2010: republican campaign strategist- can you say: 'embarrassment of riches'?

[brewens]

4. My citi dividend card used to be my best one now it the worst!

I got it several years ago with a free George Foreman grill. At that time it was 5% cash back on gas and anything I bought at the grocery store. It was good for more than that but that's what I used it for. I went right up to the $300 limit per year and never paid them a dime of interest. Suckers! I loved it when they paid me to use their card!
Then one day I got a notice that they dropped it to I think 2% on all that. I still used it some but it took forever to build up to the $50 you needed to get a cash back check. Now they jacked up the rates to almost 30% and I am only using it till I get up to $50 one more time. I can't leave that cash back I have built up with them. I now make an online payment immediately after I use it to avoid the residual interest they started charging.
I can't believe they jacked up the rates that much. I have a Discover card at around 10% and a AMEX at around 13%. I guess maybe they will gain something but not from me.

[MisterP]

5. you WANT the President to fail!

we owe it to the Fearless Commander to burn all copies of tomorrow's Post and drag Binyamin Appelbaum and his family to the nearest lamppost!

to do otherwise would weaken the Party, which gives us all life and created the universe! it's not our place to demand good policies from them

:sarcasm: (though I'm aware that non-ideological partisan thuggery is a long tradition in Latin America)

[leftstreet]

6. K&R

[galileoreloaded]

7. Something bigger is going on....theyaren't this stupid.....anybody see a comet around???

[girl gone mad]

8. This deal makes absolutely no sense,

unless you factor in personal ties between the administration and Citigroup. Someone in the WH or Treasury has to be personally benefiting from this,,

Yes, I'm saying very plainly that the only way this deal makes any sense whatsoever is corruption.

[donheld]

9. Why didn't the US just let Jesus give all the money?

:hide: