Reformed Chicks Blabbing

Reformed Chicks Blabbing

2.7 billion of TARP money went to a British Rum company

posted by Susan Johnson | 8:59am Monday June 29, 2009

The Democrat-controlled Congress is pushing legislation out too fast that those in Congress have no idea what’s in the legislation they’re passing and their colleagues are slipping in pork without them knowing it:

In June 2008, U.S. Virgin Islands Governor John deJongh Jr. agreed to give London-based Diageo Plc billions of dollars in tax incentives to move its production of Captain Morgan rum from one U.S. island — Puerto Rico — to another, namely St. Croix.
DeJongh says he had no idea his deal would help make the world’s largest liquor distiller the most unlikely beneficiary of the emergency Troubled Asset Relief Program approved by Congress just four months later.
Today, as two 56-foot-high (17-meter-high) tanks for holding fermenting molasses will soon rise from the ground on the Caribbean island of St. Croix, the extent to which dozens of nonbank companies benefited from last October’s emergency financial rescue plan is just beginning to come to light.
The hurried legislation adopted by a Congress voting under the threat of sudden global economic collapse led to hidden tax breaks for firms in dozens of industries. They included builders of Nascar auto-racing tracks, restaurant chains such as Burger King Holdings Inc., movie and television producers — and London’s Diageo.
[...]
In March, deJongh, 51, describes the history of the agreement in his office in the Government House…
He says he traveled to Washington in June 2008 to brief federal officials. He met with Representative Charles Rangel of New York, who’s chairman of the Ways and Means Committee; Senate Energy and Natural Resources Committee Chairman Jeff Bingaman of New Mexico; West Virginia Senator Jay Rockefeller; and then Interior Secretary Dirk Kempthorne.
[...]
Diageo also qualifies for additional tax incentives, reducing its U.S.V.I. tax liabilities to as low as 3.5 percent, from 35 percent.

Nice deal. I bet a lot of American companies wish they had it.
That’s your tax dollars at work, folks. We’re broke and we’re bailing out a British company. Nice work, Democrats.
BTW, it’s fun to play spot the Democrat in the article. Those with their hands in your wallet, taking out your money and giving it to a British-run rum company are Democrats. I thought I’d help you out since the only Democrat named in the article is Max Baucus (Baucus must have done something to tick off the reporter).
(via and Instapundit)



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posted June 29, 2009 at 10:36 am


Remember that this is bipartisan stuff. George W Bush asked for TARP and Republicans and Democrats have both been quite happy to give money away.

… they were ratifying deJongh’s deal by extending the underlying tax policy that made the agreement possible in the first place.

So it wasn’t a new program.

Under the terms of the deal, the U.S. gives the money to the U.S.V.I., not the company.
‘Do What They Want’
“The Virgin Islands can do what they want to with their source of revenue,” Sullivan says.

So it doesn’t go directly to Diageo.
I’m not defending the program at all. As far as I can tell, all tax subsidies of businesses are corrupt and economically destructive. Getting states to fight each other to subsidize businesses is stupid and forces taxes to increase on others. We need to change tax laws to forbid the use of local subsidies by states or territories, whether or not they get reimbursed by the feds for these subsidies. We particularly need to stop subsidizing professional sports teams and other businesses that offer very few jobs per dollar of subsidy.



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Michael

posted June 29, 2009 at 11:13 am


“Those with their hands in your wallet, taking out your money and giving it to a British-run rum company are Democrats.”
At the behest of Michele’s buddy, George W. Bush and the Bush administration. TARP was created by a Republican administration. If she were honest, she’d at least admit that.
IOW, the people picking your pocket is the Bush administration.



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freelunch

posted June 29, 2009 at 8:45 pm


Michael, don’t you know, Bush was a Democrat, pass it on.



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Fatbalualp

posted June 7, 2010 at 4:27 pm


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Fatbalualp

posted June 17, 2010 at 6:47 pm


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