As we listen to voices on the right demonize President Obama for what they say is his “attack on Capitalism,” we read in today’s NY Times that AIG is suing us, i.e. the United States Government:
While the American International Group comes under fire from Congress over executive bonuses, it is quietly fighting the federal government for the return of $306 million in tax payments, some related to deals that were conducted through offshore tax havens.
Relying on a unappetizing mix of tax loopholes, offshore tax shelters, and foreign tax credits (with a creamy employee compensation center!) to make the case that we owe them $306 mil, AIG is fast becoming the poster child for what is most definitely wrong with today’s brand of Capitalism – it is decidedly unchecked.
It’s also another example of why the “you’re either with us or you’re against us” crowd gets it wrong when they label anyone who sees the need for regulated Capitalism as “Socialists.”
In a perfect world, one without avarice, deceit, and other human frailties, unfettered Capitalism and absolute free market principles might work. In the real world – you know, the one where our government is trying desperately to manage bailout programs funded by tax dollars at the same time a bailed out company is suing the government for the return of hundreds of millions in tax payments – a nice, steady, and fair regulatory hand is desperately needed.
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