Click amount to donate direct to CounterPunch
  • $25
  • $50
  • $100
  • $500
  • $other
  • use PayPal
Spring Fund Drive: Keep CounterPunch Afloat
CounterPunch is a lifeboat of sanity in today’s turbulent political seas. Please make a tax-deductible donation and help us continue to fight Trump and his enablers on both sides of the aisle. Every dollar counts!
FacebookTwitterGoogle+RedditEmail

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.

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 is the host of GRITtv, which broadcasts weekdays on satellite TV (Dish Network Ch. More…9415 Free Speech TV) on cable, public television and online at GRITtv.org and TheNation.com. Follow GRITtv or GritLaura on Twitter.com.

 

 

More articles by:

Laura Flanders is the host of GRITtv now seen on the new, news channel TeleSUR English – for a new perspective. 

Weekend Edition
May 25, 2018
Friday - Sunday
Melvin Goodman
A Major Win for Trump’s War Cabinet
Andrew Levine
Could Anything Cause the GOP to Dump Trump?
Pete Tucker
Is the Washington Post Soft on Amazon?
Conn Hallinan
Iran: Sanctions & War
Jeffrey St. Clair
Out of Space: John McCain, Telescopes and the Desecration of Mount Graham
John Laforge
Senate Puts CIA Back on Torture Track
David Rosen
Santa Fe High School Shooting: an Incel Killing?
Gary Leupp
Pompeo’s Iran Speech and the 21 Demands
Jonathan Power
Bang, Bang to Trump
Robert Fisk
You Can’t Commit Genocide Without the Help of Local People
Brian Cloughley
Washington’s Provocations in the South China Sea
Louis Proyect
Requiem for a Mountain Lion
Robert Fantina
The U.S. and Israel: a Match Made in Hell
Kevin Martin
The Libya Model: It’s Not Always All About Trump
Susie Day
Trump, the NYPD and the People We Call “Animals”
Pepe Escobar
How Iran Will Respond to Trump
Sarah Anderson
When CEO’s Earn 5,000 Times as Much as a Company’s Workers
Ralph Nader
Audit the Outlaw Military Budget Draining America’s Necessities
Chris Wright
The Significance of Karl Marx
David Schultz
Indict or Not: the Choice Mueller May Have to Make and Which is Worse for Trump
George Payne
The NFL Moves to Silence Voices of Dissent
Razan Azzarkani
America’s Treatment of Palestinians Has Grown Horrendously Cruel
Katalina Khoury
The Need to Evaluate the Human Constructs Enabling Palestinian Genocide
George Ochenski
Tillerson, the Truth and Ryan Zinke’s Interior Department
Jill Richardson
Our Immigration Debate Needs a Lot More Humanity
Martha Rosenberg
Once Again a Slaughterhouse Raid Turns Up Abuses
Judith Deutsch
Pension Systems and the Deadly Hand of the Market
Shamus Cooke
Oregon’s Poor People’s Campaign and DSA Partner Against State Democrats
Thomas Barker
Only a Mass Struggle From Below Can End the Bloodshed in Palestine
Binoy Kampmark
Australia’s China Syndrome
Missy Comley Beattie
Say “I Love You”
Ron Jacobs
A Photographic Revenge
Saurav Sarkar
War and Moral Injury
Clark T. Scott
The Shell Game and “The Bank Dick”
Seth Sandronsky
The State of Worker Safety in America
Thomas Knapp
Making Gridlock Great Again
Manuel E. Yepe
The US Will Have to Ask for Forgiveness
Laura Finley
Stop Blaming Women and Girls for Men’s Violence Against Them
Rob Okun
Raising Boys to Love and Care, Not to Kill
Christopher Brauchli
What Conflicts of Interest?
Winslow Myers
Real Security
George Wuerthner
Happy Talk About Weeds
Abel Cohen
Give the People What They Want: Shame
David Yearsley
King Arthur in Berlin
Douglas Valentine
Memorial Day
FacebookTwitterGoogle+RedditEmail