If George Bush took your money and handed $33 billion of it over to huge home builders, you and the mainstream media would probably be upset. When Obama hides that giveaway in an unemployment benefits bill, no one seems to care except, bless her black heart, Gretchen Morgenson of the New York Times. (I occasionally fantasize about the effect on the Times’ editorial board were they ever to read Morgenson’s work, but that’s not going to happen).
Congress took away income averaging from individual taxpayers years ago but it remains a popular way to reward friends and Obama’s dragged it out the cupboard again to do just that. Hope and change.
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Large builders aside, this is a welcome relief for many of my small clients who will enjoy large refunds this year.
Sure, but why not authors? Real estate agents? Bond traders?
Applies to all eligible small businesses (ESBs) and individuals who have NOL ( Net Operating Losses) for 2008 or 2009.
Our clients are lining up…Bu$y times ahead.
CF,
NOL Carryback Provision
Under the American Recovery and Reinvestment Act of 2009(passed in Feb), small businesses, with average gross receipts of $15 million or less, were allowed to carry back net operating losses (NOLs) incurred in 2008 to claim a refund of taxes paid within the prior five years (previously there was only a two-year carryback allowed). Now under this latest Act, the five-year carryback has been extended and modified.
The new five-year carryback election is allowed for losses incurred in either 2008 or 2009 (i.e., it is not allowed for both years) and is permitted for all businesses, regardless of size. However, this provision is not available to any business who received TARP (Troubled Asset Relief Program) funds. Although there is no limit on the NOL carryback amount to the first four years, if carried back to the fifth year, the carryback amount is limited to 50% of the business’s taxable income for that year.*
If a small business had elected to carry back a 2008 NOL under the provision in the American Recovery and Reinvestment Act, the limit of 50% of taxable income will not apply. Furthermore, if such an election had been made prior to the passage of the Worker, Homeownership, and Business Assistance Act, then the business may take advantage of the five-year carryback period for both 2008 and the 2009 NOLs.
The Act suspends the 90% limitation on the use of any NOLs for calculating AMT for an extended carryback year.
Hard to define “excessive” corporate welfare when many shareholders are pension funds, mutual funds, index funds
Top 1% of taxpayers pay about 50% of all taxes
Many corporate and individual taxpayers arbitrage locales for more efficient taxes and welfare subsidies…and periodically move jobs around US and OUS
Germany, China, Japan, UK, etc do even more corporate and state-sponsored welfare than US
Welfare of any form is far too intertwined and complex to logically make the usual, overly simplistic, jealousy/xenophobia-driven WallSt vs MainSt, US vs RoW arguments
Lets see how this refund cookie curbs big business’ push back on new administrations re-regulation proposals.