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. 

January 24, 2019
David Rosen
Roe: 47 Years and Counting
Joseph Essertier
Warmongering Over Warmbier: US Hypocrisy and a Double Standard on North Korea
Glenn Sacks
L.A. Teachers Strike Dispatch #9: What We Won
M. G. Piety
An Essay on Grief
Karen J. Greenberg
Creating a Global Lost Generation
Jesse Jackson
America Has Lost Its Common Sense
Noa Mendelsohn Aviv
Rebranding Canada’s Solitary Confinement Policy Doesn’t Change What It Is
Ramzy Baroud
False ‘Victories’: Is the PA Using the ‘State of Palestine’ to Remain in Power?
Binoy Kampmark
Eyeing the White House: the Democratic Field
Russell Mokhiber
Single Payer Gold Standard HR 676 Rest in Peace
David Swanson
The World Will End in Fire
David Macaray
Celebrity Bullshit
Dean Baker
How Worried Should We be If China’s Growth Rate Slows to 6.4%?
Wim Laven
What Makes America Great?
January 23, 2019
Paul Street
Time for the U.S. Yellow Vests
Charles McKelvey
Popular Democracy in Cuba
Kenn Orphan
The Smile of Class Privilege
Leonard Peltier
The History Behind Nate Phillips’ Song
Kenneth Surin
Stalled Brexit Goings On
Jeff Cohen
The System’s Falling Apart: Were the Dogmatic Marxists Right After All?
Cira Pascual Marquina
Chavez and the Continent of Politics: a Conversation with Chris Gilbert
George Ochenski
Turning Federal Lands Over to the States and Other Rightwing Fantasies
George Wuerthner
Forest Service Ignores Science to Justify Logging
Raouf Halaby
In the Fray: Responses to Covington Catholic High
Kim C. Domenico
No Saviors But Ourselves; No Disobedience Without Deeper Loyalty
Ted Rall
Jury Trial? You Have No Right!
Michael Doliner
The Pros and Cons of Near Term Human Extinction
Lee Ballinger
Musical Unity
Elliot Sperber
The Ark Builders
January 22, 2019
Patrick Cockburn
On the Brink of Brexit: the Only Thing Most People Outside Westminster Know About Brexit is That It’s a Mess
Raouf Halaby
The Little Brett Kavanaughs from Covington Catholic High
Dean Baker
The Trump Tax Cut is Even Worse Than They Say
Stanley L. Cohen
The Brazen Detention of Marzieh Hashemi, America’s Newest Political Prisoner
Karl Grossman
Darth Trump: From Space Force to Star Wars
Glenn Sacks
Teachers Strike Dispatch #8: New Independent Study Confirms LAUSD Has the Money to Meet UTLA’s Demands
Haydar Khan
The Double Bind of Human Senescence
Alvaro Huerta
Mr. President, We Don’t Need Your Stinking Wall
Howard Lisnoff
Another Slugger from Louisville: Muhammad Ali
Nicole Patrice Hill – Kollibri terre Sonnenblume
The Scarlet “I”: Climate Change, “Invasive” Plants and Our Culture of Domination
Jonah Raskin
Disposable Man Gets His Balls Back
Thomas Knapp
Now More Than Ever, It’s Clear the FBI Must Go
January 21, 2019
W. T. Whitney
New US Economic Attack Against Cuba, Long Threatened, May Hit Soon
Jérôme Duval
Macronist Repression Against the People in Yellow Vests
Dean Baker
The Next Recession: What It Could Look Like
Eric Mann
All Hail the Revolutionary King: Martin Luther King and the Black Revolutionary Tradition
FacebookTwitterGoogle+RedditEmail