05 May 2008

Looks Like Large Home Builders Won't Get Their Way

In the home mortgage packages, one of the things that the lareg home builders have been lobbying for is a tax change to allow them to carry operating losses forward to profitable years, but it increasingly looks like this will not be a part of any mortgage bill.

There are a number of reasons, the first of which was that the Senate version of the bill has been lambasted by everyone as a bailout for builders and mortgage lenders, and the second is that the threat by homebuilders to cut off political donations overplayed their hand.

Basically, because of the level of pay for play in this action, it made standing up to the homebuilders a political win, because it shows "character".

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