Fergasun Posted June 19, 2011 Share Posted June 19, 2011 WashingtonExaminer.com: Gangster Government at Treasury?If this article by professors at Harvard Law School and Indiana University Business School is correct (hat tip to Paul Caron’s taxprof blog and Glenn Reynolds's Instapundit), the Treasury acted contrary to law when it ruled that post-bankruptcy General Motors could utilize $45 billion in pre-bankruptcy net operating losses to reduce any corporate income taxes it may owe. The article is entitled “Can the Treasury Exempt Its Own Companies from Tax? The $45 Billion GM NOL Carryforward,” and the authors’ answer is No....The Treasury had no legal or economic justification for these Notices, which applied to Citigroup and AIG as well as to GM. Nonetheless, the Notices largely escaped public attention, though they had the potential to transfer significant wealth to loyal supporters (the UAW).I've argued that the "Gangster Government" started with the TARP... but it's nice to see folks pointing out some of the other "gangster-like" actions taken. The article estimated that these notices cost over $100B. Of course the article focuses on GM; but Citigroup and AIG were also beneficiaries (for some reason conservatives are afraid of banging on the TBTF bank failouts). Link to comment Share on other sites More sharing options...
Thiebear Posted June 19, 2011 Share Posted June 19, 2011 Oversight of the fed seems a little 20/400 in it's clarity? Link to comment Share on other sites More sharing options...
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