We all know that corporations are really just collections of individuals working toward a common goal. So why does the government provide corporate welfare through the tax code when we could cut out the middleman? The thought arises because one of the biggest corporate welfare queens is GE, which lost a bundle in the credit crunch through GE Capital. Obama's jobs czar, Jeffrey Immelt of GE, has destroyed 56% of his shareholders' equity since he took command from Jack Welch in 2001. The stock price when he took over on September 7, 2001 was $28.63. As of yesterday it stood at $16.10.
But Immelt gets to carry over his losses to subsequent years, which is why GE is currently paying no corporate income tax despite running a profit. So why not give the capital loss carryover to individual investors?
Right now the carryover is limited to $3000. So channeling Herman Cain's 9-9-9 Plan, why not triple the maximum carryover to $9000? This would instantaneously provide a tax rebate for homeowners who have been forced to take a loss on an underwater mortgage. That helps put a floor under falling home prices. Since it was a real estate bubble that got us into this mess, anything that helps contain the damage is sure to help us start to crawl out of the hole we find ourselves in.
The Republicans in the House could pass such a simple bill in a 'twinkling". That would show the Democrats and their OWS fellow travelers some real reform! Make the Democrat Senate refuse to take up the bill (Harry Reid's favorite ploy) or Obama veto it, if it ever did clear the Senate, or cede all the credit to me and the House Republicans!