Changes in tax code: more bailout welfare for rich people

[Hannah Bell]

Drucker, Jesse. 2008. "Obscure Tax Breaks Increase Cost of Financial Rescue." Wall Street Journal (10 October).

http://online.wsj.com/article/SB122428410507346351.html?mod=todays_us_page_one

Saha-Bubna, Aparajita. 2008. "Fannie Suit Vexes Regulator, May Pay Shareholders." Wall Street Journal (10 October).

http://online.wsj.com/article/SB122428804156146581.html?mod=todays_us_page_one


The $700 billion financial rescue package approved by Congress to shore up banks also carries a parallel bailout of the financial sector and other industries through a series of obscure tax breaks.

Operating mostly under the radar screen, Congress, the Treasury Department and the Internal Revenue Service have been rolling back various provisions of the tax code to help out industries and investors caught up in the turmoil.

The most costly -- and most controversial -- of the moves provide billions in extra tax relief to big banks such as Wells Fargo & Co. and Spain's Banco Santander SA. Another change gives aid to investors stung by the auction-rate securities meltdown. Still another shift relaxes tax rules to help big multinationals bring back cash from overseas.

The total sums involved aren't clear, but the cost will easily amount to tens of billions of dollars, tax experts say.

The latest such move was unveiled on Tuesday, when the Treasury Department declared that the cash infusions for banks won't be considered "federal financial assistance." Normally, that type of funding would count as taxable income for the recipients, and could trigger other unfavorable tax consequences for banks receiving assistance that take part in mergers.

[Hannah Bell]

1. Buffett, world's richest man, sucks up more gov't largesse...wells fargo...

"The biggest beneficiary so far is likely to be Wells Fargo. The big San Francisco-based bank recently agreed to buy Wachovia Corp. of Charlotte, N.C., which has been hammered by huge losses on mortgage-related securities and loans. Wells Fargo has said it expects to take $74 billion in write-downs on the Wachovia portfolio."

[Hannah Bell]

2. kickin it

[ColbertWatcher]

3. Hannah, this is disgusting!

The GOP-controlled media only wants to talk about "Joe" the "plumber" while ignoring how the GOP-controlled treasury department will exploit loopholes in the bailout package to screw people like "Joe" the "plumber" over!

[Hannah Bell]

4. thanks for noticing. seems people are inclined to pay more attention

to irrelevancies like "is powell's endorsement welcome?" - something they have no control over - than legislation being put into place now to further impoverish them - something they could at least take up with their legislators.

i don't understand why it's so easy to distract people from actual questions of power & influence with hot-button personality issues.

[Karenina]

5. "The Century of the Self" Adam Curtis BBC

It's in 4 parts and covers LOTS of territory. :hi:

[ColbertWatcher]

7. Links for "The Century of The Self"

http://www.bbc.co.uk/bbcfour/documentaries/features/century_of_the_self_episode_1.shtml

[Karenina]

11. THANK YOU for making it easy!!

[ColbertWatcher]

6. It doesn't require any thinking, that's why. n/t

[ColbertWatcher]

8. Monday morning kick. n/t

[Hubert Flottz]

9. Kick

[radfringe]

10. caution: sarcasm ahead

when you are only 1 dividend payout, only 1 golden parachute, only 1 tax bracket from becoming
less wealthy, I guess it's a concern...

we should help these folks with CaviarStamps, create the YES program (Yacht Economic Subsidy), and develop a Multiple Mansion Ownership Assistance Agency