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Homebuilders Bribe their Way to Billions in Corporate Welfare

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November 15, 2009 – Comments (6)

Sickening.

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.

6 Comments – Post Your Own

#1) On November 15, 2009 at 2:53 PM, DaretothREdux (43.23) wrote:

TMFBent,

Surely you are not surprised that our government continues to reward the stupid?

Oh wait....I should say something like...

THIS IS AMERICA BUDDY! LOVE IT OR LEAVE IT!

Lol.....if they keep this up I think many people may choose the latter option.

Dare

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#2) On November 15, 2009 at 3:09 PM, kdakota630 (29.50) wrote:

Dare... this is taken from a The Daily Reckoning from maybe a month or so ago.  Enjoy:

 

"A friend of mine lives here in Florida. He is not an American citizen. He pays US taxes while he lives here. But under the threat of higher national income taxes, he is contemplating giving up his green card and moving elsewhere.

"When Maryland's governor raises taxes, Maryland residents leave and government income goes down.

"When the nation's President raises income taxes, foreigners like my friend leave and government income goes down.

"Unfortunately, YOU CAN'T LEAVE.

"Wait a minute. This is America, land of the free, right?

"Not so fast... The US government will track US citizens everywhere to get tax money. If you leave to work in another country, you still pay US income taxes. America and North Korea are the only countries that tax you on your worldwide income.

"If it gets bad enough, you can just give up your citizenship, right? Nope, you can't do that either. At least, you can't do it without paying a potentially massive 'exit tax.'

"The exit tax acts like an estate tax. If you want to give up your citizenship, you have to give up nearly half your wealth above a certain level. The Economist magazine calls it 'America's Berlin Wall.' Nice, eh?

"Want some more nice? Once you're gone, you're not legally allowed to come back and visit family and friends. Yes, if the government decides you have renounced citizenship for tax purposes, a federal law prohibits you from entering the country ever again. (You can look up the rule under 8 USC 1182(a)(10)(E).)

"You can escape states with oppressive taxes. But 'escaping' the US - the land of the free - is much more difficult. And you can bet it won't get any easier as the government needs more and more of your income to pay its bills."

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#3) On November 15, 2009 at 4:52 PM, Tastylunch (29.22) wrote:

and this suprises who exactly?

the banks have set a horrible precedent that can never be erased

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#4) On November 15, 2009 at 8:28 PM, dwot (72.07) wrote:

Yep, disgusting...

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#5) On November 15, 2009 at 9:37 PM, djkumquat (47.31) wrote:

so much for my dream of owning land and having a small organic farm. and i'm paying for this increase in land values. but who needs farms, anyways, when condos are so edible?

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#6) On November 16, 2009 at 9:52 AM, TMFBent (99.82) wrote:

I typically run into Mark Warner (former Va. Gov, now senator) at a thanksgiving holiday race. Usually, we chat about cycling. If I see him this year, I'm going to give the poor guy an earful on this horrible, horrible bill.

Sj

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