I'm getting so tired of these stories. I mean, what's the point? Americans are perfectly happy to stay home and watch TV while our elected officials
I'm getting so tired of these stories. I mean, what's the point? Americans are perfectly happy to stay home and watch TV while our elected officials rob us blind and we struggle along without needed health care:
June 26 (Bloomberg) -- In June 2008, U.S. Virgin Islands Governor John deJongh Jr. agreed to give London-based Diageo Plc billions of dollars in tax incentives to move its production of Captain Morgan rum from one U.S. island -- Puerto Rico -- to another, namely St. Croix.
DeJongh says he had no idea his deal would help make the world’s largest liquor distiller the most unlikely beneficiary of the emergency Troubled Asset Relief Program approved by Congress just four months later.
Today, as two 56-foot-high (17-meter-high) tanks for holding fermenting molasses will soon rise from the ground on the Caribbean island of St. Croix, the extent to which dozens of nonbank companies benefited from last October’s emergency financial rescue plan is just beginning to come to light.
The hurried legislation adopted by a Congress voting under the threat of sudden global economic collapse led to hidden tax breaks for firms in dozens of industries. They included builders of Nascar auto-racing tracks, restaurant chains such as Burger King Holdings Inc., movie and television producers -- and London’s Diageo.
“It’s kind of like the magician’s sleight of hand,” says former House Ways and Means Committee Chairman William Thomas, a California Republican who ran the committee from 2001 to 2007 and oversaw all tax legislation. “They snuck these things in a bill that was focused on other things.”
[...] The added tax breaks prevented the TARP legislation from being rejected a second time, says Michael Steel, a spokesman for House Minority Leader John Boehner. Twenty-six Republicans, including Tim Murphy of Pennsylvania, John Shadegg of Arizona and Zach Wamp of Tennessee, reversed their earlier no votes.
Each of the tax provisions has a story -- and plenty of defenders.
We will continue to see the economic effects of the "extend and pretend" philosophy of pumping massive amounts of public money into failing banks for a very long time. (Thank God we taught those homeowners a moral lesson by refusing to help them, Read more...