California plan could be major boon to subprime lenders

[spinbaby]

Source: LA Times

SACRAMENTO -- -- One reason California still has no state budget is a closed-door dispute over a tax proposal that could be a multimillion-dollar boon to banks that engage in subprime lending.

The proposal, according to legislative sources and industry lobbyists involved in the private budget talks, was brought to the table by the Schwarzenegger administration at the urging of lenders and other corporate interests. The proponents argued that it would help offset costs to businesses that could result from other tax changes under consideration.

The plan would allow many large financial companies that are currently enduring record losses to eventually receive tax breaks millions of dollars greater than are currently available to them. Subprime lenders would be among the largest beneficiaries because they experienced a large boom followed by a bust.

(tiny snip to stay within the 4-paragraph limit)

"This is all about bailing out the subprime lending industry," said Jean Ross, executive director of the California Budget Project, a nonprofit that advocates for low-income Californians in the state budget process. "They will have checks written to them by the state of California if this goes through."

Read more: http://www.latimes.com/news/local/la-me-budget14-2008aug14,0,2637449.story

[WCGreen]

1. Socialism for the Upper crust crooks....

Bootstrap economics for the middle class...

[Trillo]

2. So this is why state workers in California

are making minimum wage per Schwarzenegger's signature? Because Corps want more corporate welfare?

Subprime lenders would be among the largest beneficiaries because they experienced a large boom followed by a bust.

Since corps are apparently crying that times are tough, then anyone who didn't profit from the years and decades of corporate-profit bubbles, and are also getting hurt now that many bubbles have burst, should also be among the largest beneficiaries. I can think of some chronic homeless who, since the 80s, weren't served by corporate's "boom" years. Workers who made minimum wage during the last 30 to 40 years didn't have their wages keep up with the true cost of inflation. Some of the poorer senior folks too, as they've also been hurt by highly-educated CPI rationales to weight upward moves in inflation less than downward moves, and which has had a BIG cumulative effect for decades, year in and out. Surely, if corps that profited handsomely during some to many of those years want huge new subsidies because times are now rough and tough for them, then indeed chronically low-paid workers, those without homes, and those former workers who are nearing the their twilight years, should get some serious subsidies, because for several generations now many were unable to partake of corporate's boom.

The negotiation over how businesses are allowed to write off losses -- part of a larger debate about taxes -- is among the latest sticking points and one that threatens to keep lawmakers from reaching a deal.

Maybe we should let human citizens deduct the cost of transportation of getting to work, their living expenses too, because for employees, their lives are pretty much geared to living for the corporation's profit. Humans should also be allowed to deduct their costs. And to put icing on the cake, since deducting these costs were unequitably denied for years and years while corps executive's and some shareholders rolled in dough, then retroactive deductions should also be allowed. Say, how about deducting all the past years of those expenses for each citizen's entire life. Those costs can likely be accurately estimated.

---

What a corrupt, unfair world we live in. Businesses want to socialize losses during down years, and privatize profits wherever and whenever those are found. But nooo, all humans can't have can't have housing, can't have healthcare during good times or bad, can't have water, can't have food, but we can have those things financially rationed to us (at a steep cost) by corporate at all times.

Keep the Corporate Gravy Train rolling and rolling by taking and taking and taking from the humans. Kick 'em while they're down! It's the American way!

[crikkett]

3. State workers' pay has not been cut to minimum wage, the Controller

wouldn't do it. The matter is now caught up in a lawsuit.