The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Bailout hides even more big tax breaks

Oct 20, 2008

When Congress passed the 700 billion dollar bailout, they also included extra tax breaks for financial companies and speculators which no one is talking about, but which will save them hundreds of billions of dollars.

One new change in the tax code allows financial companies buying banks to write off those banks’ losses as their own.

So, now that Wells Fargo has bought up Wachovia, they can declare Wachovia’s 74 billion in losses as their own. That will give them a total tax break of 19.4 billion dollars – more than the 14.3 billion dollars they spent to buy Wachovia.

Not a bad deal – get a bank for free, plus have the government hand you five billion dollars more!

Imagine how many banks are being bought up – with all the money, plus a huge profit, paid for by taxpayers – that is, us!