Archive for the ‘taxation’ Category

AIG’s excessive bonuses of $165 million infuriate Americans

March 18, 2009

It is if the world has to be reminded that greed is alive in the failing financial institutions bailed out by the US government. After American International Group Inc. (AIG) received its 170 billion rescue package, it has allotted $165 million to pay for company bonuses. This is very infuriating for the ordinary citizens who contribute tax dollars to help prop up the ailing economy.

“Fresh details pushed outrage over AIG ever higher: New York Attorney General Andrew Cuomo reported that 73 company employees received bonus checks of $1 million or more last Friday. This at a company that was failing so spectacularly that the government felt the need to prop it up with a $170 billion bailout… On Capitol Hill late Tuesday, House Democrats directed three powerful committees to come up with legislation this week to authorize Attorney General Eric Holder to recover massive bonus payments made by companies like the ones paid last week by American International Group Inc.” —–Yahoo News/ AP (03/17/09, Kellman, L)

Will the US government recover the bonuses? Who knows?

Republicans blamed the democrats for doing little in preventing this scandalous diversion of money. The giving away of hefty bonuses wasn’t done by AIG alone, but politicians in Washington are feigning outrage. Earlier Merrill Lynch paid $3.6 billion in bonuses to its executives while it negotiated its sale to Bank of America Corp., a big recipient of government bailout.

The rescue packages for ailing businesses and financial institutions which made bad decisions aren’t politically popular. It gives a bad rap on the Obama administration. Innocent people in the street are suffering for the big companies who take advantage of the bail-outs.

A growing number of irate Americans think Treasury secretary Timothy Geithner did little to prevent the giving of excessive bonuses to happen. It is believed that he knows about this bonuses early on. There are those who opine Geithner whose appointment by Obama was questioned because of failing to pay taxes must be fired.

Party supporters of Obama want the return of the bonus money to the government prompting democratic senate majority leader Harry Reid to say recipients will not be allowed to keep the money. Many Americans however are distraught to realize how untrustworthy the deals have been, compromising the taxes they give the government. They can’t fathom how leaders could be so arrogant,, extravagant, and callous to have these massive bonuses at the expense of American taxpayers—at a time when they are saddled by joblessness, loss of savings and pension plans, a slump in housing market, and bankruptcies of businesses and financial institutions. (Photo Credit: drugs crews 2)=0=


No tax collection, no progress?

October 8, 2008

If the Philippine government knows that taxes serve as lifeblood of its daily function, how come local and national government agencies and its owned & controlled corporations (GOCC’s) do not remit taxes they withheld from employees to the Bureau of Internal Revenue? What are they waiting for? Corruption plus inaction make the picture look worse.

The Commission on Audit (COA) disclosed this gross failure which accounted for revenue loss of P18.6 billion last year. With this uncollected money, is it any wonder why advancement is very slow in the Philippines?

The GOCCs account for the biggest chunk of the lost revenue—P13.26 billion—followed by the national government agencies (P2.87 billion) and the local government units (P2.51 billion).

The total amount is more than the entire 2009 budget of the Department of Environment and Natural Resources (P12.5 billion), the Department of Finance (P13.8 billion), or the Department of Foreign Affairs (P12 billion)

In 2006, among government agencies, the Department of Public Works and Highways accounts for the biggest amount of unremitted withholding taxes—P796 million—followed by the Department of Education (P303 billion) and Department of Agriculture (P201 million).—, Newsbreak (10/08/2008 Fonbuena,C)

Tasked to look for sources of govenment funds by the House of Representatives, the Congressional Planning and House Budget Office (CPBO) through its director of fiscal services Dina de Jesus Pasagui revealed that even the Philippine Congress and Senate owe the BIR P16 million in withholding taxes and COA owes P33 million. The CPBO chief Rodolfo Vicerra called for an improvement of taxpayers’ database of 29 million nationwide employees, of which only 5 million (less than 1/5) pay taxes.

It seemed the government focused on sensational cases of tax evasion among movie stars like Judy Santos and Regine Velasquez, but it didn’t look into the paralysis of tax collection in huge agencies where the big money would come from to finance the cost of running the country. =0=