Obama's IRS to grant Citi 38 billion dollar tax exemption

Zebo

Elite Member
Jul 29, 2001
39,398
19
81
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.
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504534.html?hpid=topnews
------------------
From Zebo's daily Best government money can buy news the graft continues. So really, if you thing about it, Citi and others arnt going to fully payback this TARP money at all with these exemptions. So much for looking out for the little guy and making those who were responsible for this economic mess pay for their sins eh Obama?
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
And lest we forget, Obama's administration has a disproportionate number of ex (and recent) Citi execs. Which is why this country's government is corrupt.
 

Craig234

Lifer
May 1, 2006
38,548
348
126
Not just over this, but it's my opinion now that the Obama administration is corrupt regarding the finance industry.

There was an interview today of Matt Taibbi on this on the Thom Hartmann show (see sig), and Thom asked him why Obama has chosed the road of Clinton and not the road of FDR.

Taibbi said it's a mystery but the main theories are naivete by Obama, and his recognizing the need for money for re-election and how the needed money comes from Wall Street.

He said he thinks it's a combination of the two. That seems reasonable to me. I'm not that familiar with the details on campaign funding to know how much Obama 'has to' make these compromises to get re-elected, but clear the pressure is stronger than it should be for the good of our contry. I might still think Obama has a lot of good intentions, but I can't excuse the choices he's making.

None of this is to compare him to the Bush or other Republican would-be administrations. I'm not saying he's as bad or wose than they would be. But I am noting my conclusion of his wrongs.

And one way it is worse, is that we liberals expect a sellot from Bush - but it's very destructive when someone purportedly on 'our side' does something like this, it cripples any further debate.

Liberals are more and more fretting about what to do, between 'fixing' the Democratic party they're so disappointed in, and going outside it.

Nothing new there to what I've long been saying that there is a battle in the Democratic party between the progressive wing and the corporatist wing. Shamefully Obama has chosen the latter.

I understand he has to govern in the current system and the less important issue is Obama compared to the overall excessive power of the corporatocracy. That's what we need to fix.

And the only sizable group out to do that that I see is the progressive wing of Democrats.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Not just over this, but it's my opinion now that the Obama administration is corrupt regarding the finance industry.
So today we both have confessions, Craig. :)
 

werepossum

Elite Member
Jul 10, 2006
29,873
463
126
Too big to pay?
LOL!

This is in a nutshell why we will never have the FairTax; Congress will never give up its power to reward its friends and punish its enemies via the tax code, and likewise no president is ever going to give up the power to do the same via the IRS.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
I understand he has to govern in the current system and the less important issue is Obama compared to the overall excessive power of the corporatocracy. That's what we need to fix.
I think the system itself is dementing, really to the point where even the best of intentions are waylaid. In this manner I think I can give Bush a little more leeway. After all he is only human, as is Obama. The system itself is an abusive parent and few kids come out of that environment better for the experience. Until Washington can further distance itself from its symbiosis with corporate whores I don't know what else we're going to see.
 

rudder

Lifer
Nov 9, 2000
19,441
85
91
"But the taxpayer won't lose any money because the banks will pay back all the TARP loans!"

Or

"The government will make a profit by selling these assets for more than they paid"

oh well it made good blog fodder anyway.
 

heyheybooboo

Diamond Member
Jun 29, 2007
6,278
0
0
LOL!

This is in a nutshell why we will never have the FairTax; Congress will never give up its power to reward its friends and punish its enemies via the tax code, and likewise no president is ever going to give up the power to do the same via the IRS.

Ding! Ding! Ding!

"" Under the law, the government's sale of its 34 percent stake in Citigroup, combined with the company's recent sales of stock to raise money, qualified as a change in ownership.

~~~

Citigroup said that the value of its past losses was about $38 billion, allowing it to avoid taxes on its next $38 billion in profits. Under normal IRS rules, a change in control would sharply reduce the amount of profits that Citigroup could shelter from taxes in any given year, making it much more difficult for Citigroup to realize the entire benefit before the tax breaks expired.

~~~

The precise value of the IRS ruling depends on Citigroup's future profitability and other factors, but two accounting experts said it was fair to estimate that Citigroup would save at least several billion dollars as a result. ""


Slightly less than $38 billion ....



-
 

cubby1223

Lifer
May 24, 2004
13,518
42
86
Not just over this, but it's my opinion now that the Obama administration is corrupt regarding the finance industry.

<snip>

And the only sizable group out to do that that I see is the progressive wing of Democrats.

But Obama is a "Progressive"...

Did you catch when I replied to you not too long ago that you will soon learn that all power corrupts?

You seem to be a well-educated person, but also seem to be so utterly clueless on common sense!

Government will always try to seize power, and government will always become corrupted by that power. There is no wing of the Democratic party "immune" to corruption. That would be on the level of me saying "Only the non-corrupt wing of the Republican Party can fix this," to which you would attack me for supporting pure evil.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
But Obama is a "Progressive"...
Maybe he was. He certainly isn't now, though, is he?

It's too bad that the day he came in office people weren't shaking in their boots about the shake-up about to go down in DC, but oh well. Maybe next time, right? Fat fvcking chance.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,591
5
0
But Obama is a "Progressive"...
Maybe he was. He certainly isn't now, though, is he?

It's too bad that the day he came in office people weren't shaking in their boots about the shake-up about to go down in DC, but oh well. Maybe next time, right? Fat fvcking chance.

The blinders are starting to peel back.

Will people pretend that nothing is wrong (like the emperor that has no clothes) or will they demand that he honor his committments.

If he can buy his way out with bribes/stimulus (Chicago style), then buy plenty of KY
 

Craig234

Lifer
May 1, 2006
38,548
348
126
But Obama is a "Progressive"...

Another response lost to the bad browser and retyping, argh.

No, he's not on this issue, which is why progressives are so upset with him on it. You can't measure that by 'approval ratings' with Bush fresh in their memories as the alternative, but it's there.

Did you catch when I replied to you not too long ago that you will soon learn that all power corrupts?

No, but you are wrong to imply this is new ground, I've looked at the issue for decades. Lord Byron's quote is actually that power *tends to* corrupt.

It's because I understand it very well that I hold views about *systemic issues* that allow that tendency to corrupt to cause problems - positions against the excessive concentration of power in a few hands.

Why I favor things to oppose that corruption and have the nation's resources serve everyone, which *includes* the efficiency of uneqal rewards, but not the excessive and corrupt concentrations that reduce overall prosperity in order to ensure that the many are laboring for the benefit of the few - if they're lucky and not simply in poverty.

You seem to be a well-educated person, but also seem to be so utterly clueless on common sense!

Not to remind you of moonbeam, but that has more to do with you than me. Gandhi and King sounded that way to a lot of people too - people who our own President just distanced himself from in Norway.

In fact I'd say perhaps you need more than common sense in dealing with the complex issues of poverty and wealth, with the complex institutions our society has, in dealing with the complex financial system.

How does 'common sense' say to fix the problems of war, of Wall Streeet excesses? It doesn't, does it?

Government will always try to seize power, and government will always become corrupted by that power. There is no wing of the Democratic party "immune" to corruption. That would be on the level of me saying "Only the non-corrupt wing of the Republican Party can fix this," to which you would attack me for supporting pure evil.

You have fallen for a wrong ideology. "Government" before 1776 was, for example, the royalty of Europe owning the 'corporation' they founded, the largest by far in the world, and setting government policy, especially taxation, to give the company they profted from advantage over the competition - very bad corruption. That's different than the designed American "government", founded on the principle that government's just powers are derived from the consent of the governed, and giving the poor masses who had few rights and giving them something new called a 'vote' over their government.

At its best, this new 'governemnt' has the people able to stand up to the corrupt few and have better policies for the nation. In practice, the system provides some limited measure of protection where if the powerful try to go too far, the people can vote for change. Regardless, the 'government' when elected like this is, at least in principle, not the same as the government you rail against like the government of England before it - which itself was in a gradual process of democratization over a period of centuries as the culture of mankind in the west evolved from the primitive 'king-serf' paradigm.

In practice, democracy has given us a hybrid - a mix of the powerful still having more than their fair share of power, but with more limits than they have without democracy.

When you attack 'government' the way you do, you throw the baby - the role of *elected* government to stand up to corrupt power on behalf of the people - out with the bathwater of the government being corrupted by those same powers to serve them instead of the people. You need to be careful abou tthat, because the crippling of the elected government isn't freedom from the corrupt powers, it's increased tyranny under them as the power of the vote has been crippled to challenge them.

Attacking 'government' as the problem because it's been hijacked by the rich is a bit like attacking the police force even existing if the mob corrupts them. The solution is cleaning them not abolishing them.

Indeed you might find it ironic that the same powerful few who represent the corruption you hate in goverment are *encouraging* you to hate government.

The only thing better for them than undue influence to thwart democracy, is to really cripple or remove the system that threatens them on behalf of the people.

It's as if the American people revolted to get rid of the 'corrupt government' of 1800 without considering the restoration of the corruption government of England that would follow.

I think we have a crisis of corruption now, and that includes, but is not led by, government. We need stronger 'real democracy'. I've posted various things I think will help.

One thing is for people to stop accepting the groupings of 'left and right', and start noticng the common interests of the middle class, and the poor compared to the contentrated powerful.

I'm not talking about guillotines - I'm talking about learning to ask skeptical questions about Bush's tax cuts and not love them for the pittance you get and ignore the borrowed windfall for the top few.

It involves recognizing that our democracy is not working too well now, with a lot of ignorance leading to the people being manipulated to bad policies, and what will help.
 

waggy

No Lifer
Dec 14, 2000
68,145
10
81
again i ask why people are surprised at something like this? it amazes me that people really thought he was "different" and was bringing "change" , "honest government" and "transparency of government"


The government Has only two goals. To keep the power they have and to gain more power. sure sometimes they give power up if they think it will either bring or keep them in power (IE elected back)
 

Ausm

Lifer
Oct 9, 1999
25,215
14
81
Not just over this, but it's my opinion now that the Obama administration is corrupt regarding the finance industry.

There was an interview today of Matt Taibbi on this on the Thom Hartmann show (see sig), and Thom asked him why Obama has chosed the road of Clinton and not the road of FDR.

Taibbi said it's a mystery but the main theories are naivete by Obama, and his recognizing the need for money for re-election and how the needed money comes from Wall Street.

He said he thinks it's a combination of the two. That seems reasonable to me. I'm not that familiar with the details on campaign funding to know how much Obama 'has to' make these compromises to get re-elected, but clear the pressure is stronger than it should be for the good of our contry. I might still think Obama has a lot of good intentions, but I can't excuse the choices he's making.

None of this is to compare him to the Bush or other Republican would-be administrations. I'm not saying he's as bad or wose than they would be. But I am noting my conclusion of his wrongs.

And one way it is worse, is that we liberals expect a sellot from Bush - but it's very destructive when someone purportedly on 'our side' does something like this, it cripples any further debate.

Liberals are more and more fretting about what to do, between 'fixing' the Democratic party they're so disappointed in, and going outside it.

Nothing new there to what I've long been saying that there is a battle in the Democratic party between the progressive wing and the corporatist wing. Shamefully Obama has chosen the latter.

I understand he has to govern in the current system and the less important issue is Obama compared to the overall excessive power of the corporatocracy. That's what we need to fix.

And the only sizable group out to do that that I see is the progressive wing of Democrats.

I don't know Craig but Obama's dangerously leaning toward a DINO imo. He is really pissing off his base. I think he is getting some terrible advice from his inner circle (especially his economic team). This idea of bipartainship is such a joke in today's polorized political system. Hopefully he will start listening to the people who got him elected or he is going to a 1 term president.
 

Craig234

Lifer
May 1, 2006
38,548
348
126
again i ask why people are surprised at something like this? it amazes me that people really thought he was "different" and was bringing "change" , "honest government" and "transparency of government"


The government Has only two goals. To keep the power they have and to gain more power. sure sometimes they give power up if they think it will either bring or keep them in power (IE elected back)

You're spewing adolescent right-wing, anti-democracy (I'd say anti-democratic but you might think I mean the party) ideology.

If y ou are right, explain to me the many times government has gone the other direction and caused positive change, often against the interests of the few powerful.

Usually I'm on the other side trying to convince people that it's not nearly enough, but when you say government never does it, I have to say otherwise.

I'm not even going to answer what you actually said about government pursuing its own power, because that's ridiculous on its face. Ratrher there are powers in the nation that the government sometimes serves.

When Teddy Roosevelt and the progressive era went after things big business liked, like child labor, how was that the government only pursuing 'power'? When FDR added major regulations to Wall Street to prevent things that enriched a few at the expense of the nation, how was that the nation protecting the powerful? When JFK chose to end support for European colonization of the third world, when he fought for ending segregation, how was that the goverment 'pursuing its own power'?

'The government' contrary to your ideology doesn't exist as some evil entity - it's made of men and those men are selected, to an extent, by the votes of the public.

Ironically, you are easy to manipulate by politicians because you have fallen for this. Ronald Reagan and George Bush 43 railoed against 'big government' - so they were not for 'government power' right?

Bill Clinton said 'the era of big government is over', so he's your buddy, not fighting for big government, too, right?

If you fear 'the government' and not the powerful groups who use the goverment, how are you going to have any idea how to vote? You will be robbed of any chance to not get screwed over.

Your cycnicism is wrong. People had every right to hope for better with Obama. We didn't elect 'just another Hoover' with FDR, or 'just another Eisenhower' with JFK.

It's damaging when someone who is supposed to bring liberal change disappoints, but the answer is not being cynical, it's to push for the desired liberal change.
 

CycloWizard

Lifer
Sep 10, 2001
12,348
1
81
I understand he has to govern in the current system and the less important issue is Obama compared to the overall excessive power of the corporatocracy. That's what we need to fix.

And the only sizable group out to do that that I see is the progressive wing of Democrats.
Good post. My only qualm is with this bit: Obama was elected precisely to change this system. Instead, he has apparently decided that he likes the system. I foresaw this and is exactly why I couldn't vote for the guy. If I really thought he would give everyone the grand shakedown that he was promising, he would have had my support. Unfortunately, my cynicism has proven to be right again, though I wish I had been wrong.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Good post. My only qualm is with this bit: Obama was elected precisely to change this system. Instead, he has apparently decided that he likes the system. I foresaw this and is exactly why I couldn't vote for the guy. If I really thought he would give everyone the grand shakedown that he was promising, he would have had my support. Unfortunately, my cynicism has proven to be right again, though I wish I had been wrong.
Well, I truly had expected better from him. I am still not sure whether he was lying or whether the system has corrupted him so quickly. I think some of both with a healthy bit of deceit, considering that as soon as he won election he immediately starting hiring bank execs.

And then today news like this, it's so blatant.

If not the government Citi would be done and yet it gets these endless silver spoons; TARP, gov equity purchase, tax break. And the punishment? None. No cleansing of the ranks in upper management or anything, it's truly fvcking obscene is it not? And you've got Citi whispering into the ear of Obama. It reminds me of the scene in lord of the rings with that king who's all old and haggard under the spell of that snake dude. Heck, I'm making it my sig.
 

CycloWizard

Lifer
Sep 10, 2001
12,348
1
81
Well, I truly had expected better from him. I am still not sure whether he was lying or whether the system has corrupted him so quickly. I think some of both with a healthy bit of deceit, considering that as soon as he won election he immediately starting hiring bank execs.

And then today news like this, it's so blatant.

If not the government Citi would be done and yet it gets these endless silver spoons; TARP, gov equity purchase, tax break. And the punishment? None. No cleansing of the ranks in upper management or anything, it's truly fvcking obscene is it not? And you've got Citi whispering into the ear of Obama. It reminds me of the scene in lord of the rings with that king who's all old and haggard under the spell of that snake dude. Heck, I'm making it my sig.
Meanwhile, I still owe Citi the next 10 years of my life in student loan payments. Where's my bailout? I was counting on them failing so I'd get off scott free. :p
 

ayabe

Diamond Member
Aug 10, 2005
7,449
0
0
LOL!

This is in a nutshell why we will never have the FairTax; Congress will never give up its power to reward its friends and punish its enemies via the tax code, and likewise no president is ever going to give up the power to do the same via the IRS.

No, in a nutshell we'll never have the FairTax because it's a piece of shit.
 

piasabird

Lifer
Feb 6, 2002
17,168
60
91
I guess this is easy for tax cheats to approve. To hell with all the little people who will have to pay a tax penalty because they were laid off and they had to spend some of their retirement money that are looking forward to a big fat tax penalty.

There is no indication at all that O'Bammah cares about anyone.
 

ericlp

Diamond Member
Dec 24, 2000
6,133
219
106
Hahaha You idiots are all too funny!!!

If it was bush that did it, and he's the one that started this whole mess rolling... you'd be YAY!!! Let's pay it up.

This whole two party system is corrupt from core out. Tell me something new!!!

No, Obama doesn't care about you that's for sure and I'm sure if you were in his position you wouldn't care about me! :D

I just laugh at people that think if mcsame was at the helm he would have done better...

Will it change? No...

Keep voting for your TWO PARTY CORRUPTION!!!!!!!!

How ya liking it so far? :)
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Hahaha You idiots are all too funny!!!

If it was bush that did it, and he's the one that started this whole mess rolling... you'd be YAY!!! Let's pay it up.

This whole two party system is corrupt from core out. Tell me something new!!!

No, Obama doesn't care about you that's for sure and I'm sure if you were in his position you wouldn't care about me! :D

I just laugh at people that think if mcsame was at the helm he would have done better...

Will it change? No...

Keep voting for your TWO PARTY CORRUPTION!!!!!!!!

How ya liking it so far? :)
I don't think anyone thinks mccain would have been better. The reason many republicans hated Obama is because they really also believed in his change, fearing he'd do a lot. They should be relaxed now.
 

BriGy86

Diamond Member
Sep 10, 2004
4,538
1
91
For as much as people complain about the 2 main parties I'm surprised the 3rd parties don't get more votes.

There are still a lot of people that will ONLY vote Democrat or Republican no matter how much they may not like either or both... The people will get the government they deserve.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
For as much as people complain about the 2 main parties I'm surprised the 3rd parties don't get more votes.

There are still a lot of people that will ONLY vote Democrat or Republican no matter how much they may not like either or both... The people will get the government they deserve.
I think most people don't actually think there is anything majorly wrong with their party, unfortunately.