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Since the hit pieces keep coming, time for an NOL thread.
In 2009, amid great recession, a unified Dem govt enacted the Worker, Homeownership, and Business Assistance Act to expand UI and provide tax relief to businesses and home buyers.
403-12 in House (D 247-0)
98-0 in Senate
In 2009, amid great recession, a unified Dem govt enacted the Worker, Homeownership, and Business Assistance Act to expand UI and provide tax relief to businesses and home buyers.
403-12 in House (D 247-0)
98-0 in Senate
Among other provisions, the law contained--you guessed it--a 5 year carryback for net operating losses, allowing all businesses, from small pass-through to big C-corp, to access cash flow by amending previous years' returns.
Here is how it was characterized at the time...
The Obama WH fact sheet hailed this as a provision as "a fiscally responsible economic kick-start, putting $33B in tax cuts in the hands of businesses this year when they need it most." https://obamawhitehouse.archives.gov/realitycheck/node/6166
The Obama WH fact sheet hailed this as a provision as "a fiscally responsible economic kick-start, putting $33B in tax cuts in the hands of businesses this year when they need it most." https://obamawhitehouse.archives.gov/realitycheck/node/6166
Here is what then-and-now Speaker Nancy Pelosi said about NOLs during the floor debate: https://www.congress.gov/congressional-record/2009/11/05/house-section/article/H12381-2
Here is how then-Rep. Chris Van Hollen put it: https://www.congress.gov/congressional-record/2009/11/05/house-section/article/H12381-2
Here is the Dem Ways and Means Committee summary https://waysandmeans.house.gov/media-center/press-releases/house-passes-worker-homeownership-and-business-assistance-act-2009
The only real difference between then and now is that the much-maligned GOP tax law used new NOL limitations to pay for some of the other changes in the bill. Changes that were criticized at the time by certain people who are now decrying the temporary CARES reversion!
Beyond lazily casting this as some kind of loophole for certain political bogeymen, most of the attention has been cast on the eye-popping score, which:
A) was erroneous--JCT was forced to issue a rare correction today; and
B) is the function of a devastating economic projection
A) was erroneous--JCT was forced to issue a rare correction today; and
B) is the function of a devastating economic projection