CTJ is garnering support from organizations for a letter asking Congress to reverse the Treasury's NOL giveaway to banks already receiving bailout funds. Readers already know that I think Treasury overstepped its authority in telling banks that they could simply disregard tax legislation, without explicit authority from Congress to do that. Regretably, there is no one who has standing to challenge Treasury's action other than Congress itself. Therefore, it is imperative that pressure be brought to bear on Congress to take action now to reverse the Treasury decision not to enforce the law.
Below is an excerpt from the CTJ appeal for co-signers. The full letter is available here.
The letter asks lawmakers to cosponsor legislation introduced in the House and Senate to reverse this Treasury notice so that the tax code can once again effectively block abusive tax shelters.
In addition to the $140 billion in federal revenue that will be lost [a projection by Jones Day of the cost in federal tax revenues from the banks' use of NOLs otherwise not available to them], state governments will also lose revenue, because most states have a corporate tax that is linked to the federal corporate tax. California, for example, will reportedly lose $2 billion if the Treasury notice is allowed to stand. States are already cutting back needed public services and the Wells Fargo ruling will only make matters worse.
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