AIG To Sue Federal Government.

(Via AoSHQ) I have a suggestion for the Federal government. Find whoever it is that made this decision:

In Twist, AIG Sues Its Benefactor Over Taxes

In the midst of its negotiation with the federal government over revised terms of its bailout, American International Group Inc. sued the U.S. on Friday over a disputed $306 million in taxes, interest and penalties.

The suit steps up a battle with the Internal Revenue Service largely over AIG’s use of a controversial type of “tax arbitrage” transaction that authorities are challenging across the world.

With the company essentially suing its owner, the suit highlights the awkwardness of national control of AIG, which the government rescued from potential bankruptcy in September. If through litigation “you’re moving money from one pocket to another, why should we be paying lawyers to do that?” says David Weisbach, a tax law professor at the University of Chicago.

“AIG is taking this action to ensure that it is not required to pay more than its fair share of taxes,” said a company spokeswoman. An IRS spokesman declined to comment.

Fire that person.

Then fire every person that that person ever hired.

Then fire every person who works on the same floor as that person. You never know: there may be a airborne vector for stupidity.

Then figure out some way to let AIG collapse without destroying the American economy, because if there is an airborne vector for stupidity, it’s probably infected the entire company by now. We probably already have the disease spreading through the federal government anyway, but you never know; let’s just get the government out of the insurance business on general principles. In the meantime, start wearing those little breath mask things.

Every little bit helps.

Moe Lane

Crossposted to Moe Lane.