Again, this week there is another use(s) for taxpayer bailout money. Now, besides the carmakers, banks, many States, etc, AIG needs an additional $40 billion. 

All told, AIG will now receive about $150 billion in taxpayer bailout money. This is over 20 percent of the original proposed bailout amount of $700 billion. 

The incredulous tag line provided by “Federal officials” with the announcement of dispensing of more of our country’s future is, “expressed confidence that the money would be repaid to taxpayers”. Doesn’t that give you a warm fuzzy feeling? This sounds like a home loan qualification under the Community Reinvestment Act which resulted in long term strong improvements in the American economy.

Now, if you believe that the money will be repaid to the taxpayers, I can approach you with many better propositions, including questionable real estate in Florida, that might actually return some of your money into your pocket. 

I did the math on the return of your money. There were 131 million tax returns filed last year. One third of these returns had no tax liability, or in non-bureaucratic English, paid no taxes. Dividing the bailout amount by the number of actual tax payers provides a “return” of around $8,000 to each tax payer. Over a typical 5 year business loan period, an average taxpayer should receive a check of about $1,600 per year. This does not include any interest. Alternatively, at the end of 5 years with a business loan rate of 5 percent, the average taxpayer should receive slightly over $10,000.00 for each investment.

If you actually believe this money will be “repaid to the taxpayers”, this could be a tremendous boost to the number of taxpayers in the country. Everyone will want to pay all the taxes possible so they can get a larger proportional repayment from their, or someone’s, investment in the bailout. Now would be the time to become a card carrying American taxpayer.

Maybe you don’t think the government will actually return this money to the taxpayer. Maybe you have had enough Kool Aid to believe the money will simply reduce the payments amount necessary from the taxpayers. Don’t feel deceived, you are not alone.

I do not fall into either of these groups. I simply understand that this bottomless government pit will simply absorb any (and there probably won’t be any) money returned by the bailout receivers to fund whatever pleases their fancy at the time. I also know that there will continue to be continued budget deficits, and bailouts are just starting, and that the bailout level will never get to the recipient level where it might do some good.  

Just doing my patriotic duty per Joe Biden.