Home Builders (You Heard That Right) Get a Gift

[katkat]

Source: New Tork Times

ON Nov. 6, President Obama signed the Worker, Homeownership and Business Assistance Act of 2009 into law, extending unemployment benefits by 20 weeks and renewing the first-time homebuyer tax credit until next April.

But tucked inside the law was another prize: a tax break that lets big companies offset losses incurred in 2008 and 2009 against profits booked as far back as 2004. The tax cuts will generate corporate refunds or relief worth about $33 billion, according to an administration estimate...

Among the biggest beneficiaries are home builders...This is getting to be a habit: companies that participated on the upside and are now reaping rewards from the taxpayers on the downside...dropping helicopter money on the home builders — the folks who massively overbuilt in community after community — seems decidedly less urgent (unless you are one of these companies, of course). Given that the supply of housing far outstrips demand, it is unlikely that these companies will use these tax breaks to hire workers (unless they go into a completely new line of business)...

Representative Lloyd Doggett, a Texas Democrat, has conducted a lonely fight against the tax break all year.

Read more: http://www.nytimes.com/2009/11/15/business/economy/15gret.html

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Yet another giveaway of taxpayer money, increase in the giant deficit, while Joe Public is being foreclosed on and paying 20-30% interest on credit cards with no help.

[RKP5637]

1. USA, Inc., again. n/t

[jwirr]

2. And yet another move toward trying to revive the status quo and

ending any move toward sustainable living.

[RKP5637]

5. This, is so true! I was wondering the same recently. I was telling a

friend of mine how much longer can we keep up in this country. Each day costs go up, the standard of living goes down and the wealthy sector takes more and more because of how they have leveraged themselves and are working the system. I am seriously wondering if anything is ever going to change or if we are just preparing to go through the same again, as you say, "revive the status quo..."

[DJ13]

3. Obama seems to be under the illusion that Wall street IS the economy

I know that before Summers came onboard Obama was saying some fairly tough things about Wall Street's responsibility in creating the economic crisis, but after he named Summers to his staff he suddenly began acting differently.

Im starting to see that the current administration is infiltrated with the same crooks that got us in this mess, and they wont be satisfied until they completely ruin our economy in their pursuit of raw greed.

This tax credit will offset losses among other corporations than just home builders, and its sole purpose is to prop up earnings to keep the stock markets up.

[gtar100]

4. Supply Side Economics 101

a.k.a. The Grand Illusion

[Yuugal]

6. Thats weird I tried to recommend and it said thread locked

Seems to be ok now though. Its funny how us dems always think we are smarter than the other side, even as repukes/vichy dems rob us blind over and over.

[RKP5637]

8. I had the same happen, but the moderator was moving the original OP, so it

apparently temporarily locked up during the move.

[anonymous171]

7. What the fucking fuck is this fucking shit oh my fucking god fuck fuck fuck fuck

:argh::grr::mad:

[Greyhound]

9. Corporate welfare = good, individual welfare = bad.

War = good, Health care = too expensive

Regressive taxes = fine, Progressive taxes = bad

And the beat goes on...

[anigbrowl]

10. And how are you getting that out of the story?

"ON Nov. 6, President Obama signed the Worker, Homeownership and Business Assistance Act of 2009 into law, extending unemployment benefits by 20 weeks and renewing the first-time homebuyer tax credit until next April."

Explain to me how that is not some individual welfare along with the tax break to the construction sector.

[Greyhound]

11. If you really do need an explanation of the difference between an insurance policy and

a $30+B gift to real estate developers, there is nothing to be gained from further conversation.
:hi:

[anigbrowl]

17. It's a pity you can only argue by moving goalposts. .nt

[RKP5637]

12. Nothing has really changed, has it, IMO. n/t

[Greyhound]

13. Well, we're being robbed more politely...

:shrug:

[laughingliberal]

14. I could live with this if taxpayers who were taken down by the economy could

average their incomes over the past 3 years. It was like that when I got out of nursing school. Of course, Reagan was president and he took care of getting rid of that.

[sandnsea]

16. Lots of taxpayers are sole properietors

and will benefit enormously from this.

And yes, there should still be income averaging too.

[laughingliberal]

19. True. We are sole proprieters but not builders

If I ever manage to pull out of the deep depression and get our taxes for the past 3 years done, I know we will owe money for 2006 & 2007. This past year we barely managed to eat a lot of the time. We're screwed.

[sandnsea]

21. All small business have some carryback

http://www.irs.gov/newsroom/article/0,,id=205329,00.html

It's been that kind of year for everybody.

[laughingliberal]

22. Thanks. There may be some hope for us.

Now if I can just stop the panic attacks long enough to do our books.

[sandnsea]

15. My daughter's ex-husband is a builder

This may well save their ass.

Every single tax benefit doesn't go to corporations. Regular every day people have lost their businesses too.

Why is thinking so goddamn hard around here.

[elehhhhna]

18. people have no idea how building affects the economy.

and it's the only thing they can't totally outsource. This will totally keep our ass saved for now.

[girl gone mad]

20. With legislation like this, who needs an emetic?

"Securing this tax break was a top priority for home builders, lobbying records show. The Center for Responsive Politics reports that through Oct. 26 of this year, home builders paid $6 million to their lobbyists. Last year, the industry spent $8.2 million lobbying.

Much of this year’s lobbying expenditures were focused on arguing for the tax loss carry-forward, documents show.

Among individual companies, Lennar spent $240,000 lobbying while companies affiliated with Hovnanian Enterprises spent $222,000. Pulte Homes spent $210,000 this year.

That’s some return on investment. After spending its $210,000, Pulte will receive $450 million in refunds. And Hovnanian, after spending its $222,000, will get as much as $275 million."

:puke:

Throw the bums out.

[Blue_Tires]

23. i don't get it...who is going to buy these new homes once built?

aren't there a zillion foreclosed homes and empty subdivisions nationwide?? and I'm just talking the bright shiny ones built within the past 2 years...

oh well, at least the anti-tax free market folks will be happy...:sarcasm:

[RKP5637]

24. Excellent Point! n/t