Homebuilders Bribe their Way to Billions in Corporate Welfare
Quite apart from the obvious subsidy that the legislation send directly to the scums who inflated the housing bubble, this legislation also, beneath the surface, gives billions of dollars right back to the losers who caused the problem.
Hovnanian Enterprises is another big beneficiary of the tax break. It anticipates a refund of $250 million to $275 million next year. It had $550 million in cash in its most recent quarter.
Smaller recipients include Standard Pacific, which is poised to reap cash refunds of $80 million under the new tax break. According to its most recent financial filing, Standard Pacific held $523 million in cash and cash equivalents.
Finally, Beazer Homes told investors that it expects to receive a refund of $50 million. The company reported cash and equivalents of $557 million at the end of September.
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.
Lennar spent $240,000 lobbying while companies affiliated with Hovnanian Enterprises spent $222,000. Pulte Homes spent $210,000 this year.
That’s some return on investment. After spending its $210,000, Pulte will receive $450 million in refunds. And Hovnanian, after spending its $222,000, will get as much as $275 million.
Meanwhile, the bag that we taxpayers are left holding gets bigger and bigger.
Be sure to thank Obama and your crooked legislators. Only 83 congressmen and zero senators voted against enriching these companies who caused all this trouble, and don't need the money.