- 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

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

Goal Setting

Want to succeed? Then you need goals!

View Course »

TurboTax Articles

Amending Your Income Tax Return

What if you've sent in your income tax return for a previous year and then discover you made a mistake? You can make things right by filing an amended tax return. And, don't think an amended return will automatically cost you money; it's perfectly okay to change a return to capture a tax break you missed the first time around.

How to File Taxes with IRS Form 1099-MISC

If you receive tax form 1099-MISC for services you provide to a client as an independent contractor and the annual payments you receive total $400 or more, you'll need to file your taxes a little differently than a taxpayer who only receives regular employment income reported on a W-2.

What If I Did Not File My State Taxes?

At the time of this writing, the only states that do not charge a state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you live or earn money in one of the other 41 states or the District of Columbia, you may need to file a state income tax return by April 15. It is a separate and independent requirement from filing your federal tax return and failure to file it on time may result in interest and penalty charges.

Add a Comment

*0 / 3000 Character Maximum