The Bill being pushed by President Obama looks like its on its way to being passed unless we get on the phone and oppose it. This Bill offers some of the most egregious and irresponsible tax refunds to the CEO's that single handedly produced this current crisis. The vast majority of the mortgage fraud has gone unpenalized and remains largely undiscovered. Its been wrapped up and packaged by Wall Street as derivatives and various other Wall Street instruments. The impact of which has yet to really be realized. Please take a closer look at the details before we all say "What were we thinking?"

It is essentially the same bad policy as the bank bailout. Corporations can retroactively apply for tax refunds for all the profits they paid taxes on over the past 5 years. Think about that. Who does that benefit the most? Who made the biggest profits over the past 5 years and now is experiencing the biggest losses....the homebuilders, the real estate investors, the financial planners, the mortgage industries that perpetrated the most fraud and made the biggest profits. They now get all that money back and we have to pay for it. This graph shows the House Bill breakdown and the Senate is even more compromised to the Corporations.

Image

Think about it. Does it make sense that we cut 16 billion in education construction but left the part in where we will be sending billions in tax refunds to developers? Wouldn't that money be better spent on education construction than in the developer's pocket? That money would put their industry to work so why give it to them with no strings attached where they can sock it away the same way the bank CEOs did.

If we let this pass we will have no one to blame but ourselves. I know not everyone likes politics, but right now we have to. We have to pay attention. This Congress has already proven that it cannot be trusted. It is not a Democrat or a Republican thing. Their big money is coming from the same places and no one is looking out for us but us. So I urge you to take a second and look at how this package is the same bad policy as the bank bailout. Call your senators and the Whitehouse. 202 456-1111

Comments

hopeful Feb. 9, 2009 @ 11:19 p.m.

This net operating loss carryback issue fires me up too. Unfortunately, i've seen no one comment on this except this blog and this link (http://www.americanprogress.org/issues/2009/02/nol.html).

Last year, the newspaper editorials against this were too numerous to count and constituents shouted it down. Where are these voices? The net operating loss carryback truly does nothing to stimulate the economy. It's not a tax cut, it's a grant. And it's a grant to people who are the most undeserving as you have written.

0

historymatters Feb. 10, 2009 @ 12:21 p.m.

Thank you for the comment. You are exactly right. I CANT believe that no news media is covering this.

Today, though I did find some articles showing how these criminals are applying for the tax breaks and how they are the big winners in this bill not us.

http://www.miamiherald.com/news/politics/AP/story/884737.html

http://online.wsj.com/article/SB123428903633569181.html?mod=googlenews_wsj

0

hopeful Feb. 10, 2009 @ 6:58 p.m.

From that Wall Street Journal article re the $15,000 home tax credit: "Senate Democrats, such as Sen. Charles Schumer (D., N.Y.) said the provision isn't narrowly tailored enough to stimulate new-home construction."

Boy, do they miss the point. The fact is there are way too many large developers in this country because of the credit bubble creating false demand (speculation and people buying homes and properties they couldn't afford to pay back the loans on). They need to not build one more house for several years. And most of them need to cease to exist because their product isn't really wanted.

0

hopeful Feb. 11, 2009 @ 8:31 p.m.

You will be happy to know that the home tax credit was stripped out and the not operating loss carryback provision was limited to small companies, effectively excluding the $2.4 billion that would have gone to the 13 largest homebuilders (for nothing).

0

historymatters Feb. 12, 2009 @ 12:31 a.m.

Thanks. Yeah I saw that about the tax credit. That was a start but how crazy is it that we are sending these guys like Beazer and McMillan billion dollar checks so they can what???? Start building more homes and pushing the price down more or socking it away in their offshore bank accounts. Either way it hurts the economy. I mean McMillan has a private corporate jet. they made out like bandits. They are not the ones that need money or should have money. In fact it is them that should be forced to step in and help the foreclosures or give people some of their money back since they were WAY overpaid for these slums they built. They are the only ones that REALLY made out these past few yrs (them and the loan officers and real estate agents) but they have already been paid in full the price of these overpriced mortgages.

Im truely disappointed in Obama for conceding to something as egregious and harmful as this. He is only encouraging the same paradigm that DOES not work. I know in Economics you learn that housing is one of the biggest economic engines for a country, but it needs to stop being a critical economic engine. This is not change. Its the same thing. And its just ensuring that the recession will be bigger and longer. I thought he was smarter.

The economists do NOT approve of this package. They say under no uncertain terms, the corporate tax breaks will do NOTHING. so for him to assert that all economists agree this is the right solution is just a lie.

Just imagine if he took that 50 billion plus and he used it to repair infrastructure. It would put all those guys to work and it would create something of real value. Or even better, what if he turned that $ into grants to encourage innovative thinking and reward people that come up w/ solutions.

Thank you for your comments. I just hope people will really start a dialogue so they can really marinate in the impact of this legislation.

0

Sign in to comment

Join our
newsletter list

Enter to win $25 at Broken Yolk Cafe

Each newsletter subscription
means another chance to win!

Close