Stimulus could benefit homebuilders, banks

Source: AP/MSNBC


Companies struggling after years of healthy profits may get tax refund

updated 5:29 p.m. ET, Wed., Jan. 23, 2008
WASHINGTON - U.S. homebuilders, lenders and other struggling companies could receive hefty one-time tax refunds this year and next under a provision of the economic stimulus plan percolating in Washington.

President Bush and lawmakers from both parties aim to quickly inject capital into the economy, which has been hit hard by turmoil in the housing and credit markets, by extending the timeframe under which companies are allowed to retroactively deduct net operating losses against earlier profits.

It would be the second time in recent history that the government has amended this accounting tool, known as a "tax loss carryback," to stimulate the economy in the face of a recession.

Under the proposal, one of several emergency tax breaks being considered for corporate America, companies would for two years be allowed to carry back losses incurred in 2007 and 2008 against profits accrued over the previous five years, instead of the usual two year timeframe.

Some of the biggest beneficiaries would be Wall Street banks such as Citigroup Inc., Merrill Lynch & Co., Morgan Stanley and Bear Stearns Cos. Homebuilders, which have been punched by the housing slump after years of go-go profits, also stand to benefit. In fact, any company that is now struggling following years of healthy profits (that pumped up their tax bills) could in theory benefit.





Read more: http://www.msnbc.msn.com/id/22808753/

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Another sellout by the corporate whores in our party who get their marching orders from corporate lobbists. Sink the economy and get rewarded for irrsponisble,greedy, unethical behavior by a Democratic controlled congress. The real winners will be the people who exploited and created the problem while the political hacks will throw a rebate bone to the voters to get themselves reelected.

A few billion here, a few billion there, why not? It's free money. The greatest boost to the economy is 1.) Stop Bush's sociopathic mutilations in Iraq. 2.Get a Democrat in the white House. oh George. Keep your blood soaked booty. We refused to cash your economy stimulating checks six years ago, we'll do it again. Thanks for the post.

The citizens get payday loans.

why does anyone expect anything different from this admin? ot's the SOS over and over. Np wonder the foreign markets don't trust Shrub to fix the problem.