Friday, March 20, 2009


As AIG takes billions of dollars from the federal government to stay afloat, it is suing the government for millions more. AIG is trying to recover $306.1 million of taxes, interest and penalties from the Internal Revenue Service. Among other things, AIG is contesting an IRS determination last year that the company improperly claimed $61.9 million of tax credits associated with complex international transactions. AIG has also asked a court to make the government reimburse it for money spent suing the government.
Given that the government owns 79.9 percent of AIG and has been using taxpayer money to fill a seemingly bottomless hole at the company, the lawsuit might seem like a case of biting the hand that feeds it.
Because the dispute pits the government against a company that has essentially become a ward of the government, the only clear winners are likely to be lawyers. The legal expenses could consume millions of dollars, they said. Millions of our dollars, folks. Good money after bad. Pay the bonuses , incur the wrath of the American people, now sue the government that saved your corporate ass.
What's next? Congress passes the exorbitant tax structure on the bonuses and retention payouts you dished out recently, then sue the American taxpayers again? And, ultimately pay the lawyers millions and millions more of what is essentially our money, either way? I am so sick of this corporation I could vomit.

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