US Forgoes Billions in Tax on Citi

[ArmyGuy45]

The U.S. government "quietly" agreed not to collect billions of dollars in potential taxes from Citigroup [C 3.52 -0.04 (-1.12%) ] as part of its deal to allow the bank to repay its taxpayer bailout, The Washington Post reported.
The Internal Revenue Service issued a notice on Friday that extends the benefit to Citi and other companies in which the government owns a stake, the Post reported.
A Citigroup spokesman declined to comment.
The Washington Post said the precise value of the IRS ruling depends on Citigroup's future profitability and other factors, but the newspaper cited two accounting experts as estimating Citi would save at least several billion dollars.
A Treasury spokesperson told CNBC: "This rule was designed to stop corporate raiders from using shell losses to evade taxes, and was never intended to address the unprecedented situation where the government owned share in banks."

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Current DateTime: 01:02:07 16 Dec 2009
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At the end of the third quarter, Citi said its past losses were valued at about $38 billion, allowing it to avoid taxes on its next $38 billion in profits, but under normal IRS rules, a change in control would have sharply reduced the amount the company could shelter from taxes, the newspaper said.
Under a deal announced Monday, Citi will sell $17 billion of common stock and about $3.5 billion of securities that turn into common shares in three years, helping the bank repay the bailout.
The government will also stop guaranteeing a pool of toxic assets against excessive losses, and will sell the nearly $30 billion in shares it owns.


US Forgoes Billions in Tax on Citi - CNBC






So Can I just write off my debt to?



So they are let off on paying taxes to pay back other taxes? Does this mean next year they are going to be let off again to pay back taxes that they owe from the previous year? And so on and so on...





This is why you do not GIVE money to those who have already shown they do not know how to use it!

[hornshwangler]

Originally Posted by ArmyGuy45

This is why you do not GIVE money to those who have already shown they do not know how to use it!

I couldn't agree more and this is why we should all stop giving money to the worst abuser, our own government.

[paul34]

I think we should all just become the typical UK citizen.

"well I don't know if I agree with that, but I'm sure the government will eventually do the right thing that's best for us."

It's way easier than watching Rome burn.

[ForTehNguyen]

wonder how many friends the govt had in Citigroup

[Frenchy]

Originally Posted by ForTehNguyen

wonder how many friends the govt had in Citigroup

The Citi-Obama Administration Connection - Under The Influence - Under the Influence

[jmichna]

Originally Posted by Frenchy

The Citi-Obama Administration Connection - Under The Influence - Under the Influence

It's the Chicago Way!

Why did/how could anyone (meaning the electorate) seriously think that a Daley acolyte, a Daley creation, would not bring Chicago/Cook County Machine style behavior to the White House?

Look at Obama's staff and cabinet... look at his stable of "czars."

[DanTheEldest]

I feel it appropriate to once again offer my services in the capacity of Benevolent-Dictator-for-Life of the United States. It will take the iron rule of an absolute monarch to undo centuries' worth of bureaucratic creep and strip away all the wasteful redundancies and overlapping of government departments. Power will be returned to the individual states via a ruthless gutting of government, a virtual departmental disembowelment, an enema of the elected. Centralized power will be centralized to the absolute--in the figure of one man. It will take no less than this to return us to the republic we were meant to be, and my iron fist wrapped in the velvet glove of compassionate strength will lead us into the dawn of a new future.

So let it be written, so let it be done.

[Frenchy]

Originally Posted by DanTheEldest

I feel it appropriate to once again offer my services in the capacity of Benevolent-Dictator-for-Life of the United States. It will take the iron rule of an absolute monarch to undo centuries' worth of bureaucratic creep and strip away all the wasteful redundancies and overlapping of government departments. Power will be returned to the individual states via a ruthless gutting of government, a virtual departmental disembowelment, an enema of the elected. Centralized power will be centralized to the absolute--in the figure of one man. It will take no less than this to return us to the republic we were meant to be, and my iron fist wrapped in the velvet glove of compassionate strength will lead us into the dawn of a new future.

So let it be written, so let it be done.

You have my vote, sire!

[CMfromIL]

Originally Posted by Frenchy

You have my vote, sire!

Sire? When did Dan start mating horses? That sounded wrong.

[jmichna]

Originally Posted by CMfromIL

Sire? When did Dan start mating horses? That sounded wrong.

That's "sire" to the nation... "father" of his country, if you will.