- Days left
I've been against the whole concept of "government bailouts" of private businesses from the start. The theory was that we, as consumers, needed the government to prop up failing businesses because they were so vital to our economy.

My personal theory has been that we need the free market do the work. If companies made bad investments or bad business decisions, then they should have to live with the consequences. If the companies still have value but are headed toward death, let another company (via the free market) decide that and purchase the company with its own funds.

Having the government intervene in all of these bailouts seems to just prolong the pain. The companies receiving money don't seem to be making the kind of drastic changes they need to rehabilitate their businesses. There are just more handouts every time we turn around.
Remember American International Group (AIG)? It got an $85 billion bailout from the federal government because it was too important to go out of business. Well that amount quickly escalated to $123 billion. And now the government has made a deal with AIG to instead give it a bailout worth $150 billion. How is it that in just about a month since the bailout deal with AIG was made, it has almost doubled in cost to taxpayers?

There are people saying these bailouts won't really "cost" taxpayers anything, as the government is taking ownership interests in the companies getting bailout funds and will someday see profits. That's supposed to make me feel better? Our government, which is totally inept at running anything like a real business (don't spend more than you make) will own parts of private businesses? I know it may not be popular to mention this, but government ownership of businesses is one part of Communism, something I don't think we want to explore.

So now we've got bailouts of AIG, big banks, and probably the Big Three automakers. Who's next for their handout? I think more insurance companies will be next, with credit card companies following closely behind. It's hard not to ask where my bailout is. I've been responsible. I bought a house I could afford, and I make my mortgage payments on time. I've never been late on a credit card payment or charged more than my limit. I pay all bills on time always. Yet I, as a taxpayer, should continue to help fund these bailouts of companies that don't seem to be doing much to fix their problems???

And in case you're wondering... YES, there is already talk of expanding the $700 billion bailout....

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

TurboTax Articles

Video: Who Qualifies for an Affordable Care Act Exemption (Obamacare)?

The Affordable Care Act requires all Americans to have health insurance or pay a tax penalty. But, who qualifies for an Affordable Care Act exemption? Find out more about who qualifies for an exemption from the Affordable Care Act tax penalty, how to claim an exemption on your tax return and how the Affordable Care Act may affect your taxes with this video from TurboTax.

Video: How to Claim the Affordable Care Act Premium Tax Credit (Obamacare)

The Affordable Care Act Premium Tax Credit is a new refundable tax credit that can lower your monthly health insurance premiums. If you qualify for the tax credit, you can claim the Premium Tax Credit throughout the year to lower your monthly health insurance premiums, or claim the credit with your tax return to either lower your overall tax bill or increase your tax refund.

Deducting Summer Camps and Daycare with the Child and Dependent Care Credit

If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children or dependents.

What Is Schedule H: Household Employment Taxes

If you hire people to do work around your house on a regular basis, they might be considered household employees. Being an employer comes with some responsibilities for paying and reporting employment taxes, which includes filing a Schedule H with your federal tax return. But even if you have household employees, filing Schedule H is required only if the total wages you pay them is more than certain threshold amounts specified by federal tax law.

Add a Comment

*0 / 3000 Character Maximum