Network News

X My Profile
View More Activity

Irate over IRS deal with Citigroup

Our Readers Who Comment are unified in their anger this morning about a story that says the feds have agreed to forego billions of dollars in potential taxes from banking giant Citigroup and a few other companies as part of an agreement to end taxpayer bailouts.

As Binyamin Appelbaum writes, "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."

Readers have filed more than 300 comments as of this writing. They're very unhappy, asking such questions as "Where's my tax break?," complaining about Citigroup jacking up their credit card rates, finding little difference between Democratic and Republican presidents and predicting President Obama will reap large campaign contributions for this largesse toward bankers.

And columnist Steven Pearlstein opines that the agreements "will dramatically reduce the legal and political leverage the administration holds over those very same banks..."

We'll start with shangang, who wrote, "This just feels wrong. After the taxpayers bail out these megabanks, they get a deal on their taxes??? Kinda don't think Obama voters voted for this misplaced largesse... on top of the not really Health Reform bill that isn't going to ever be."

austi99 said, "It is interesting to see people write about the Republicans this, and the Democrats that. Don't these people realize after all these many years, that these parties are all one? Like Obama, once the candidate who is running for president, talks to who is running this country, they soon morph into the same president that preceded them. Need I name all of them? Sickening."

But Mnnngj was one of the few voices who wrote, "...The TARP thing has worked remarkably well in that the finiancial industry has been stabilized AND taxpayers are getting paid back their loans. It may have been wildly unpopular but it turns out to have been a great success. Those who are now upset the rich who own the banks are getting a break and blame Obama for it are stupid. Congress, the IRS etc. are not some magic wand that Obama waves over them and they change..."

mpwynn said, "So, let me get this straight. Taxpayers bail out bankrupt Citibank. Citibank imposes fees and raises interest rates on taxpayer credit cards. Government allows Citibank to retain billions of dollars worth of tax breaks. For the first time in my life, I don't think I will file an income tax return. Why should I?..."

Delories shouted that "The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal. AND WE THE PEOPLE CANT GET HEALTH CARE REFORM BILL WITH A PUBLIC OPTION?
BREAK THE BANKS APART..."

fzdybel wrote, "It seems to me that if this Citi buy-back deal can't be floated without a special tax break, then it is clearly too early for it to be floated, period. Either Citi is ready to do without government assistance, or else it isn't... Capitalism is a myth, what we actually have is a system wherein, as in fascism, you no longer see any clear boundary between the public and private sectors because they are hopelessly intermeshed."

OldAtlantic said, "This should be conditioned on no bonuses or cash comp over 400k or stock they can sell until the tax money is repaid. At a minimum, the government should have gotten stock in the company for this. This is just another giveaway..."

Single_Payer asked, "How long will the American people continue to be suckered by Obama and hid Wall Street family?"

smarterthanaman wrote, "I don't even know what to say to this garbage. Am I confused, is W still in office with a Republican majority in Congress? This is insane. When is corporate America going to start to pay their share of taxes? Has the IRS and Treasury gone mad???"

twotaul said, "Will really be interesting to see which candidates reap the rewards from Citigroup in the form of campaign contributions in November. After all, it looks like they have an extra million or two to spread around. Hope the Post keeps its eye on both sides of this issue."

paris1969 wrote, "I am so disgusted with our government. Welfare to rich corporations. What would our founding fathers think of this?"

dsul93 said, "Sellouts. The corporations run this country. Any resemblance to a democracy is long gone. I am closing my chitibank account and running up my chitibank card to the max for Christmas, then stiffing them with the bill, after all that's what they've done to us."

Aprogressiveindependent wrote, "Some people are still probably fooled by Obama's occasional populist rhetoric. The reality is his administration is no different than Bush II, in being subservient to corporate interests."

mss627 said, "This is why we need industry wide regulation. Not just on the failed banks. These idiots still don't get it. I have no problem with compensation for a job well done but we're talking about failure on an epic scale. I'm convinced we'll all be back here in a few years."

stuck_in_Lodi wrote, "This is just nuts. We taxpayers get screwed twice--once with the loan and now with the tax break. And the Congress still buys into the crap that they have to allow the execs of these companies to take home multi-millions. The Brits are taxing bonuses at 50%. We should to. If we did that no company would lose its officers to a place where they could make more money"

citigreg said, "Enough is enough! Citibank raised all our card rates and now this! Fail!!"

We'll close with Georgetowner1, who wrote, "That's right - reward the money changers (as the Bible would call them). We now have a spiritually defunct government - what else could we expect?"

All comments on this article are here.

By Doug Feaver  |  December 16, 2009; 7:18 AM ET
 | Tags: Bailout, Citigroup, IRS  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Jobs vs. Afghanistan
Next: Dean, Lieberman spark health care debate

Comments

Support The re-institution of Glass-Steagall. This separates investment banks from commercial lending banks. It was first enacted after the great depression, so banks couldn't gamble away depositors money on risky investments. It was repealed in 1999 because the banking industry is much more savvy now and a whole meltdown of the economy could never happen again - ohhh. whoops. sorry my bad. The hubris and greed of Wall St. MUST be tempered with rational regulation.

Posted by: porkchopper | December 17, 2009 10:32 PM | Report abuse

Support The re-institution of Glass-Steagall. This separates investment banks from commercial lending banks. It was first enacted after the great depression, so banks couldn't gamble away depositors money on risky investments. It was repealed in 1999 because the banking industry is much more savvy now and a whole meltdown of the economy could never happen again - ohhh. whoops. sorry my bad. The hubris and greed of Wall St. MUST be tempered with rational regulation.

Posted by: porkchopper | December 17, 2009 10:31 PM | Report abuse

I think collusion exists in the banking industry. They started out offering low rates and zero rates on balance transfers to get people hooked on credit. Then raised rates and added fees. Then raised them even more. All in one industry wide lock step. Where is the bank that will offer reasonable rates to take market share away from these bully banks? Where is the anti-trust lawsuits? Where is the checks and balances of a competitor driven free market?

Posted by: porkchopper | December 17, 2009 9:52 PM | Report abuse

The IRS is part of the Treasury Department. Giethner is Secretary of the Treasury.
Giethner used to be Chairman of the New York Fed which oversees the Wall Street Banks. What else could we expect?

Posted by: FadingFast | December 16, 2009 11:03 PM | Report abuse

While Citi jacks up loan rates to 30 percent on people with good credit, they take tax payer money and loan it back at loan shark rates. Now, they and Obama's IRS do it again.

Posted by: mackmarks | December 16, 2009 3:54 PM | Report abuse

Sounds like a giveaway without strings attached as there would be if bailout money were given. Yet oil companies get tax breaks all the time, with many on the right defending them even as record profits were broken.

I'd like an official explanation why we should give the banks or other industries such tax breaks, and lets talk about all industries.

Posted by: Fate1 | December 16, 2009 1:19 PM | Report abuse

And to think I campaigned, donated, and voted for this. At least McCain was honest in bowing down to the will of the big corporations.

David McGee
Lynchburg, VA

Posted by: dhmcgee | December 16, 2009 12:22 PM | Report abuse

I believe that because of this, everyone and anyone who owes any balance to Citibank should default.
If you have money in accounts with ANY bank, take it out and place it in a cooperatively member owned Credit Union.
We the People do have some power, and NOW is the time to exercise it.

Posted by: Impeachbush99 | December 16, 2009 9:57 AM | Report abuse

Obama and the Democrats continue on their quest of financial terrorist enablers. It's appalling, disgusting, demoralizing and a direct INSULT to We the People. We have been raked over the coals, loan sharked, extorted and robbed.

It's time to clean house in Washington, the current group of thieves led by Obama are sickening.

Posted by: Impeachbush99 | December 16, 2009 9:54 AM | Report abuse

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company