Jamesb101.com

commentary on Politics and a little bit of everything else

JP Morgan working on a $1.4 Billion tax refund…….and there are others…..

[chase]

No Shit!?

$1.4 Billion???

The same guys that made a boat load of money just before the bottom fell out?

Didn’t they make a lot of money recently?

J.P. Morgan Chase & Co. is nearing a deal that would allow it to benefit from a tax refund of as much as $1.4 billion, becoming the latest company to tap a little-noticed plank in an economic stimulus bill.

That law let companies apply losses from 2008 or ’09 against taxes paid in the previous five years, instead of the previous two years. Failed Seattle thrift Washington Mutual is eligible for about $2.6 billion in tax refunds, thanks to big losses in 2008. Now J.P. Morgan, which took over WaMu’s banking operations in September 2008, is in discussions with the Federal Deposit Insurance Corp. and bondholders about the refund.

According to people familiar with the talks, an agreement under discussion would let J.P. Morgan claim more than half of the total, to be held in an FDIC receivership as part of a larger settlement with bondholders. J.P. Morgan could dip into that pot to satisfy certain claims related to WaMu’s collapse.

Many other companies have benefited from the 2009 tax-refund law already. According to an analysis of securities filings by The Wall Street Journal, more than 250 companies have so far said they expect to get about $12 billion in federal tax refunds under the law.

That remains a partial list. The Joint Committee on Taxation, a congressional committee, estimated the provision would cost $33 billion in its first year.

Some critics have found the corporate-tax-refund technique wanting as a stimulus or job-creation move. Prior to Congress’s passage of the $787 billion stimulus law in early 2009, the Congressional Budget Office looked at six possible stimulus approaches and ranked this one least effective, saying each corporate tax dollar refunded would generate at most 40 cents of boost to gross domestic product. The corporate-tax-refund approach wasn’t included in the big stimulus bill early in the year, but was part of legislation in November that extended jobless benefits.

He, he, he….so they forgot to add it…but got it back in anyways?

Ah, the gift that keeps giving…..To Big guys anyways……..The U.S. Treasury….the same people we gotta pay….

More…….

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March 24, 2010 - Posted by | Breaking News, Counterpoints, Government, Law, Media, Other Things, PoliticalDog Calls, Politics, The Economy, Updates | , , ,

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