It wasn't enough to bailout the financial conglomerates with $12 trillion and then provide a first-time homebuyer tax credit that helps them and homebuilders. No, that wasn't enough. Homebuilders needed something more direct and definite. How about huge corporate tax refunds? That's the ticket.
That's right - huge tax refunds to another industry that benefited tremendously from the cheap money that was flowing like water. Now they are helped on the down side And what about us - fu*k the little guy - foreclosures and unemployment keep increasing.
ON Nov. 6, President Obama signed the Worker, Homeownership and Business Assistance Act of 2009 into law, extending unemployment benefits by 20 weeks and renewing the first-time homebuyer tax credit until next April.
But tucked inside the law was another prize: a tax break that lets big companies offset losses incurred in 2008 and 2009 against profits booked as far back as 2004. The tax cuts will generate corporate refunds or relief worth about $33 billion, according to an administration estimate.
Before the bill became law, the so-called look-back on losses was limited to small businesses and could be used to counterbalance just two years of profits. Now the profit offset goes back five years, and the law allows big companies to take advantage of it, too.
Amazing. It is impossible to get any legislation passed without some giveaway to corporate benefactors. The article makes two incredibly frustrating points:
1) These homebuilders, particularly bigger ones, are sitting on boat loads of cash right now and probably are not in desperate need for the cash infusion from government; and
2) There is no guarantee that these homebuilders, who stand to benefit tremendously from this tax windfall, will use the government welfare to generate jobs.
Amazing. What is not amazing is how the homebuilders got this government welfare:
Securing this tax break was a top priority for home builders, lobbying records show. The Center for Responsive Politics reports that through Oct. 26 of this year, home builders paid $6 million to their lobbyists. Last year, the industry spent $8.2 million lobbying.
Much of this year’s lobbying expenditures were focused on arguing for the tax loss carry-forward, documents show.
What ever happened to 'free markets' that these corporation are so fond of? Oh, that's right when it comes to padding their balance sheets there is no such thing as 'free markets' but when it comes to protecting people from corporations destructive behavior or helping people get access to affordable health insurance or helping people get a living wage or freely organize- oh, no - we need 'free markets'.
There is a cancer that is growing at an alarming rate and government can either help stop the spread of this cancer or be a accelerant. Right now, government is the accelerant for this cancer. For our sake, this has to change very soon.