Administration Snuck Key Banking Tax Change Into Bailout Bill

Many fear that the Treasury Department overstepped its bounds in loosening the provisions of Section 382 of the tax code, which curtailed banks abilities to take on shell corporations that yielded paper losses to lessen or eliminate tax burdens.  But its hard to undo now, as said loosening is probably helping facilitate bank mergers that might be serving to keep the whole system more solvent in these unsteady economic times:

Personally, I get nervous when major changes like this are snuck into emergency provisions, and Congress certainly should’ve been informed of the change.  But it might be doing some short-term good.  Hopefully President Obama will be able to close this mini Pandora’s Box when the crises has hopefully abated.


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