The Obama Administration is at it again, this time giving Billions of Tax Payer Dollars back to more of the people who created the problem in the first place. And like all legislation there is a sneaky hidden “tax break” for Corporate America buried in amidst other tax breaks which seem reasonable. This is how the Federal Government does whatever they want, whenever they want with no regard for the American Tax Payer. Continue to reward Corporate America and big business for their failures.

The Worker, Homeownership, and Business Assistance Act of 2009 was signed by President Obama on November 6, 2009. This act extends unemployment benefits by 20 weeks. I believe most people understand this and don’t have much of a problem helping the unemployed through this financial crisis. The act also extends the first time home owner tax credit and also ads a new credit for people who own existing homes. While there would be more debate on if this is good or not, most people would probably side with “good’. But how many of you would vote to extend tax relief to companies that are already flush with cash can not able to create new jobs?

Now here is where the Obama Administration has deceived the American People (Again). This bill also includes a tax break for Giant Corporations. Huge Corporations can offset losses incurred in 2008, 2009 against profits booked as far back as 2004. This “gift” will generate tax cuts worth about $33 billion dollars according to the Obama Administration. This is just another handout to Corporate America who helped create the mess. And once again ordinary taxpayers will foot the bill. The only companies who can not participate are Fannie Mae, Freddie Mac, and companies who took money under the TARP program.

This from the Huffington Post:

But dropping helicopter money on the home builders — the folks who massively overbuilt in community after community — seems decidedly less urgent (unless you are one of these companies, of course). Given that the supply of housing far outstrips demand, it is unlikely that these companies will use these tax breaks to hire workers (unless they go into a completely new line of business).

Does this make any sense at all? These companies are going to get free money and not use it for anything other than to pad their own books. The supply of housing already exceeds the demand. The housing industry has overbilt! So where is the incentive to drop prices so that ordinary folks can afford homes? There is none!

“I AM surprised that home builders are getting hundreds of millions of dollars given that many have very strong balance sheets,” said Ivy Zelman, chief executive at Zelman & Associates, a research firm. “We question the public policy decision to gift home builders with capital that many will not use to create jobs, since they admit that job growth will be dependent not on capital, but on improving demand.”

Again does this make any sense? How is this going to create the jobs that are needed in communities to spur spending which is the lubrication of the economy? This only benefits Corporate Executives who already live far beyond the means of ordinary people.

Some of the home builders poised to receive tax refunds have even more cash today than they did last year. D. R. Horton, for example, has $1.966 billion in cash, up 45 percent from September 2008 levels. And some are healthy enough to have retired significant amounts of debt from their balance sheets this year. Pulte has bought back $1.93 billion in debt in 2009.

The Federal Government is interfering with the Market Place for the benefit of the Wealthy. And what makes this legislation such an atrocity is the American Taxpayer has no saw in how their money is being spent. Take from the poor and give to the rich. The crash is coming, nothing has been fixed. If you can’t see the logic in Abolishing the Federal Reserve and supporting Politicians who are not part of the Status Quo then there is little hope for change.

If the Federal Reserve is not abolished you can bet your last nickel that the United States will become a Socialist State and your freedoms will disappear entirely. But we are not really free now… just try not paying your income taxes and see how free you are!

The Status Quo is beating a socialistic path to misery.