When one company “Bails Out” another, it is so the company can make a profit. The first order of business is to find the “Root Causes” which caused the company to fail and fix them. The next step is you are to be the approver for any expenses so you can watch the company start to recover and make adjustments along the way. You will maintain this posture until you have recouped your investment with a modest profit. This is the way the wise and very financially astute managers of companies work so let’s see how the federal does with our money.
1. In 1970 the Federal Government bailed out Penn Central Railroad to a cost of $3.2B; they then spent another $19.7B to keep it afloat. It was later sold for $3.1B with a total loss of $19.8B.
2. In 1971 the Federal Government bailed out Lockheed to a cost of $1.4B. Lockheed paid back the loan completely and the government made $122M.
3. In 1974 the Federal Government bailed out Franklin National Bank to a cost of $7.8B Government sold it later for $5.1B with a total loss of $2.7B.
4. In 1975 the Federal Government bailed out New York City to a cost of $9.4B. It did pay back the government complete but the Government made $0.
5. In 1980 the Federal Government bailed out Chrysler to a cost of $4.0B. Chrysler paid back completely and the Government made $660M.
6. In 1984 the Federal Government bailed out Continental Illinois National Bank and Trust Company to a cost of $9.5B, was sold by the government later for $7.7B with a total loss of $1.8B
7. In 1989 the Federal Government bailed out Saving & Loan to a cost of $293.3B. It did pay back the government complete but the Government made $0.
8. In 2001 the Federal Government bailed out the Airline Industry to a cost $18.6B with a total loss of $23.2M.
9. In 2008 the Federal Government bailed out the Bear Sterns to the cost $30B with a total loss of $5.8B.
10. In 2008 the Federal Government bailed out Fannie Mae/Freddie Mac to a cost $400B with a total loss of $14.9B
11. In 2008 the Federal Government bailed out American International Group (AIG) to a cost $180B with a total loss of $7B.
12. In 2008 the Federal Government bailed out Auto Industry to a cost $80B with a total loss of $20B.
13. In 2008 the Federal Government bailed out Troubled Asset Relief Program to a cost $700B with a total loss of $47B
14. In 2008 the Federal Government bailed out Citigroup to a cost $476.2B with a total loss of $88B.
15. In 2009 the Federal Government bailed out Bank of America to a cost $142.2B with a total loss of $17B.
16. In 2009 the Federal Government bailed out JP Morgan to a cost $25B with a total loss of $2B.
They only made a profit from two bailouts, one for $122M and another for $660M for a grand total of $782M. The losses were $19.8B, $2.7B, $1.8B, $23.2M, $5.8B, $14.9B, $7B, $20B, $47B, $88B, $17B, and $2B to a total loss of $226B+. This is an over all loss of between $225B and $226B; this isn’t very good business. We should never bail out any business, town, or state, it is mainly only to recieve political kickbacks which the Justice Department will never look in to and cost the hard working people of this nation billions in more taxes; this isn’t even counting the stimulus loses. I know the unions liked it when they were bailed out but they purposely miss the problem because they just want our money. Why did any of the companies have this severe of a problem? It's called "mismanagement". The people of the US should not have to pay any private company for their own mismanagement otherwise they will never fix the problem. It is discriminatory, name one small business who received a bail out, there were none which means our politicians only care about the big campaign contributors. Many of these companies received the bail out, gave a percentage to the politicians who bailed them out and filed bankruptcy anyway. These people robbed the tax payers of millions but the politicians received their share for the inside job.
First, let us take a look at the history of the Taxation. The high cost of the War of 1812 brought about the nation's first sales taxes on gold, silverware, jewelry, and watches. In 1817, however, Congress did away with all internal taxes, relying on tariffs on imported goods to provide sufficient funds for running the government. In 1862, in order to support the Civil War effort, Congress enacted the nation's first income tax law. It was a forerunner of our modern income tax with the rate starting at 3%. In 1868, Congress again focused its taxation efforts on tobacco and distilled spirits and eliminated the income tax in 1872. It had a short-lived revival in 1894 and 1895. In the latter year, the U.S. Supreme Court decided that the income tax was unconstitutional because it was not apportioned among the states in conformity with the Constitution. In 1913, the 16th Amendment to the Constitution made the income tax a permanent fixture in the U.S. tax system and product taxes were removed. The amendment gave Congress legal authority to tax income and resulted in a revenue law that taxed incomes of both individuals and corporations. The tax rate went from its modest rates in 1862, to where some were paying 50% at the end of the President Carter era and the country was in a depression/recession. In 1981, President Reagan lowered it to 28% and our country had its biggest growth in history under him. In 1990 President Bush Sr. went against his campaign promises and raised taxes to squash the Democratic leaders greed for more money, he didn’t get a second term because of this. Then President Clinton in 1993 raised taxes again to where some were paying 39.6% with the Revenue Reconciliation Act. In 2001 President Bush Jr. cut all taxes to 35% with The Jobs and Growth Tax Relief and Reconciliation Act. President Obama has raised taxes back to 39.6% and now Senator Reid wants to raise them another $1 Trillion in tax which will mostly impact the middle and lower class; this is not counting all the product taxes which have reappeared over the years. Why did we have the American Revolution?
Some politicians can never get enough of our money or take enough of our freedoms. History shows the more you tax the less growth you will have in the economy. Employers are sending jobs overseas or dropping their full time employees to 29 hours so they won’t have to pay the massive Obama Care Tax which means the middle and lower class will have to get two jobs to survive; is this what you were wanting? The more you damage the working class people by taxing them to pay for the lazy; the more you damage the country. The more you vote into office politicians, both Democrats and Republicans who refuse to balance the budget, refuse to close the ear mark loop hole, and keep putting our country into more debt the more you damage our country. President Obama to cut the deficit in half in his fist term; he lied. He promised my middle class taxes wouldn’t go up and they did by 4%; how much more will it go up if Senator Reid gets his way? Why has it gone from 3% in its beginnings to 39.6% today? The answer is because of greed and lust for power of our politicians from both parties. If you want to destroy our country, keep voting these idiots into office and you will get your wish.