SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Buried Bonanza for Over-Builders
I just don't get it. When Congress approves gifts worth billions of
dollars to people who don't deserve a dime, why isn't it front page
news?
On Nov. 6, when President Obama signed the Worker, Home-ownership
and Business Assistance Act of 2009, he extended unemployment benefits
and renewed the first-time home-buyer tax credit for a while, but
hidden deep inside the law was a tax break for businesses that did well
in the boom years -- and the resulting refund-checks will be huge.
Nov 17, 2009
I just don't get it. When Congress approves gifts worth billions of
dollars to people who don't deserve a dime, why isn't it front page
news?
On Nov. 6, when President Obama signed the Worker, Home-ownership
and Business Assistance Act of 2009, he extended unemployment benefits
and renewed the first-time home-buyer tax credit for a while, but
hidden deep inside the law was a tax break for businesses that did well
in the boom years -- and the resulting refund-checks will be huge.
The tax break would help struggling businesses, Obama declared, but
the act actually affects big companies as well as small. Businesses are
allowed to offset losses incurred in the bad years of 2008 and 2009
against profits booked as far back as 2004. Those with the biggest boom
followed by the biggest bust are exactly the companies like to benefit
the most. Among them, you guessed it, home-builders, exactly the folks
who overbuilt and over-lent us into a mortgage and credit meltdown.
Companies like Pulte Homes will receive refunds exceeding $450
million -- but Pulte's hardly in need. The company has $1.5 billion in
cash and cash equivalents on its balance sheet. Standard Pacific, which
is poised to reap cash refunds of $80 million has $523 million,
according to the New York Times.
There's no requirement that companies claiming the tax refunds are
in need of course, or that they will create jobs with the cash.
Demanding no quid pro quo worked so well for banks that Congress is
trying a repeat with builders.
Will the builders nonetheless build with the bonanza? Not likely. In building, the problem's not supply, it's demand.
What the companies are likely to do is keep on lobbying. Gretchen Morgenson reports
that "Securing this tax break was a top priority for home builders. "
According to lobbying records, home builders paid $6 million to their
lobbyists through the end of October this year, "much of focused on
arguing for the tax loss carry-forward." Pulte Homes for example, spent
$210,000, -- for which it'll receive $450 million in refunds.
"The problem here is that this public policy decision was made with
little to no input from the public." Reports the excellent Morgenson in
her column, in the business section, Sunday.
But her own paper could help solve that problem. How about reporting on this -- before it's a done deal -- on the front page?
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
© 2023 GRITtv
Laura Flanders
Laura Flanders interviews forward-thinking people about the key questions of our time on The Laura Flanders Show, a nationally syndicated radio and television program also available as a podcast. A contributing writer to The Nation, Flanders is also the author of six books, including "Bushwomen: How They Won the White House for Their Man" (2005). She is the recipient of a 2019 Izzy Award for excellence in independent journalism, the Pat Mitchell Lifetime Achievement Award for advancing women's and girls' visibility in media, and a 2020 Lannan Cultural Freedom Fellowship for her reporting and advocacy for public media. lauraflanders.org
I just don't get it. When Congress approves gifts worth billions of
dollars to people who don't deserve a dime, why isn't it front page
news?
On Nov. 6, when President Obama signed the Worker, Home-ownership
and Business Assistance Act of 2009, he extended unemployment benefits
and renewed the first-time home-buyer tax credit for a while, but
hidden deep inside the law was a tax break for businesses that did well
in the boom years -- and the resulting refund-checks will be huge.
The tax break would help struggling businesses, Obama declared, but
the act actually affects big companies as well as small. Businesses are
allowed to offset losses incurred in the bad years of 2008 and 2009
against profits booked as far back as 2004. Those with the biggest boom
followed by the biggest bust are exactly the companies like to benefit
the most. Among them, you guessed it, home-builders, exactly the folks
who overbuilt and over-lent us into a mortgage and credit meltdown.
Companies like Pulte Homes will receive refunds exceeding $450
million -- but Pulte's hardly in need. The company has $1.5 billion in
cash and cash equivalents on its balance sheet. Standard Pacific, which
is poised to reap cash refunds of $80 million has $523 million,
according to the New York Times.
There's no requirement that companies claiming the tax refunds are
in need of course, or that they will create jobs with the cash.
Demanding no quid pro quo worked so well for banks that Congress is
trying a repeat with builders.
Will the builders nonetheless build with the bonanza? Not likely. In building, the problem's not supply, it's demand.
What the companies are likely to do is keep on lobbying. Gretchen Morgenson reports
that "Securing this tax break was a top priority for home builders. "
According to lobbying records, home builders paid $6 million to their
lobbyists through the end of October this year, "much of focused on
arguing for the tax loss carry-forward." Pulte Homes for example, spent
$210,000, -- for which it'll receive $450 million in refunds.
"The problem here is that this public policy decision was made with
little to no input from the public." Reports the excellent Morgenson in
her column, in the business section, Sunday.
But her own paper could help solve that problem. How about reporting on this -- before it's a done deal -- on the front page?
Laura Flanders
Laura Flanders interviews forward-thinking people about the key questions of our time on The Laura Flanders Show, a nationally syndicated radio and television program also available as a podcast. A contributing writer to The Nation, Flanders is also the author of six books, including "Bushwomen: How They Won the White House for Their Man" (2005). She is the recipient of a 2019 Izzy Award for excellence in independent journalism, the Pat Mitchell Lifetime Achievement Award for advancing women's and girls' visibility in media, and a 2020 Lannan Cultural Freedom Fellowship for her reporting and advocacy for public media. lauraflanders.org
I just don't get it. When Congress approves gifts worth billions of
dollars to people who don't deserve a dime, why isn't it front page
news?
On Nov. 6, when President Obama signed the Worker, Home-ownership
and Business Assistance Act of 2009, he extended unemployment benefits
and renewed the first-time home-buyer tax credit for a while, but
hidden deep inside the law was a tax break for businesses that did well
in the boom years -- and the resulting refund-checks will be huge.
The tax break would help struggling businesses, Obama declared, but
the act actually affects big companies as well as small. Businesses are
allowed to offset losses incurred in the bad years of 2008 and 2009
against profits booked as far back as 2004. Those with the biggest boom
followed by the biggest bust are exactly the companies like to benefit
the most. Among them, you guessed it, home-builders, exactly the folks
who overbuilt and over-lent us into a mortgage and credit meltdown.
Companies like Pulte Homes will receive refunds exceeding $450
million -- but Pulte's hardly in need. The company has $1.5 billion in
cash and cash equivalents on its balance sheet. Standard Pacific, which
is poised to reap cash refunds of $80 million has $523 million,
according to the New York Times.
There's no requirement that companies claiming the tax refunds are
in need of course, or that they will create jobs with the cash.
Demanding no quid pro quo worked so well for banks that Congress is
trying a repeat with builders.
Will the builders nonetheless build with the bonanza? Not likely. In building, the problem's not supply, it's demand.
What the companies are likely to do is keep on lobbying. Gretchen Morgenson reports
that "Securing this tax break was a top priority for home builders. "
According to lobbying records, home builders paid $6 million to their
lobbyists through the end of October this year, "much of focused on
arguing for the tax loss carry-forward." Pulte Homes for example, spent
$210,000, -- for which it'll receive $450 million in refunds.
"The problem here is that this public policy decision was made with
little to no input from the public." Reports the excellent Morgenson in
her column, in the business section, Sunday.
But her own paper could help solve that problem. How about reporting on this -- before it's a done deal -- on the front page?
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.
To inform. To inspire. To ignite change for the common good.
News & Opinion
Trending
Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit
Privacy Policy