President-elect Barack Obama has proposed major breaks for companies that would allow them to use tax losses to offset taxable U.S. profits from the last five years, extending the period from two years.
Experts say investment banks and home builders would benefit substantially from such a plan, with some firms receiving billions of dollars.
Companies can take tax losses as deductions in future years, but the economic slump has cut into their profits and the full benefits of such deductions are years away.
Another proposal would let businesses take bigger tax deductions on capital investments made in 2009 and 2010; but with either proposal, there are concerns about whether the tax breaks will prompt banks to write new loans at a time when consumer demand and housing prices are down and unemployment is on the rise.
REALTOR® Magazine-Daily News-Tax Write-Off Plan Could Boost Builders.
Tom here - Okay, I don’t get it. Why would whether a builder gets a tax break make a difference in whether the bank will do a construction loan?
Help me out here, am I missing something?
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Tom,
This message has nothing to do with your post. I was hit with a blog tag today, and thought I would invite you to participate:
http://www.boomerinthepew.com/2009/01/blog-tag.html
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