Friday, December 18, 2009
Remember, until the banking system makes a complete recovery, the U.S. economy will not be able to make a complete recovery because credit is the nation's lifeblood. So, when elected officials do things like this that are against the interests of the big banks, they're really just hurting America - people like you and me.
A House subcommittee said Thursday that it will investigate the Treasury Department's decision to change a long-standing law so that Citigroup could keep billions of dollars in tax breaks.Kucinich objected to the government "using its authority to pick winners and losers" in what is clearly a fundamental misunderstanding about how the system works.
The Internal Revenue Service, an arm of Treasury, ruled last Friday that Citigroup could keep $38 billion in tax breaks that otherwise would decline in value as the government sells its stake in the company. Federal law lets companies shelter profits from taxes in good years based on the amount of losses in previous bad years. But the law restricts the use of past losses if a company changes hands, to discourage profitable companies from buying unprofitable firms to avoid paying taxes.