Washington Babylon — November 10, 2008, 8:19 am

Add another $140 billion to bailout cost

From the Washington Post:

The financial world was fixated on Capitol Hill as Congress battled over the Bush administration’s request for a $700 billion bailout of the banking industry. In the midst of this late-September drama, the Treasury Department issued a five-sentence notice that attracted almost no public attention. But corporate tax lawyers quickly realized the enormous implications of the document: Administration officials had just given American banks a windfall of as much as $140 billion.

The sweeping change to two decades of tax policy escaped the notice of lawmakers for several days, as they remained consumed with the controversial bailout bill. When they found out, some legislators were furious. Some congressional staff members have privately concluded that the notice was illegal…The guidance issued from the IRS caught even some of the closest followers of tax law off guard because it seemed to come out of the blue when Treasury’s work seemed focused almost exclusively on the bailout.

“It was a shock to most of the tax law community. It was one of those things where it pops up on your screen and your jaw drops,” said Candace A. Ridgway, a partner at Jones Day, a law firm that represents banks that could benefit from the notice. “I’ve been in tax law for 20 years, and I’ve never seen anything like this.” More than a dozen tax lawyers interviewed for this story — including several representing banks that stand to reap billions from the change — said the Treasury had no authority to issue the notice.

Share
Single Page

More from Ken Silverstein:

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Postcard October 16, 2013, 8:00 am

The Most Cajun Place on Earth

A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits 

Get access to 164 years of
Harper’s for only $39.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

January 2015

Come With Us If You Want to Live

= Subscribers only.
Sign in here.
Subscribe here.

The Body Politic

= Subscribers only.
Sign in here.
Subscribe here.

The Problem of Pain Management

= Subscribers only.
Sign in here.
Subscribe here.

Game On

= Subscribers only.
Sign in here.
Subscribe here.

Love Crimes

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Article
The Body Politic·

= Subscribers only.
Sign in here.
Subscribe here.

“‘He wrote all these love poems, but he was a son of a bitch,’ said a reporter from a wire service.”
Illustration by Steven Dana
Article
Love Crimes·

= Subscribers only.
Sign in here.
Subscribe here.

“If a man rapes a woman, she might be forced to marry him, because in Afghanistan sex before marriage is dishonorable.”
Photographs © Andrew Quilty/Oculi/Agence VU
Article
Game On·

= Subscribers only.
Sign in here.
Subscribe here.

“The end of the Cold War and the collapse of the Soviet Union had posed a truly existential threat.”
Illustration by Taylor Callery
Article
Come With Us If You Want to Live·

= Subscribers only.
Sign in here.
Subscribe here.

“I was startled that all these negative ideologies could be condensed so easily into a positive worldview.”
Illustration by Darrel Rees
Article
Christmas in Prison·

= Subscribers only.
Sign in here.
Subscribe here.

“Just so you motherfuckers know, I’ll be spending Christmas with my family, eating a good meal, and you’ll all be here, right where you belong.”
Photographer unknown. Artwork courtesy Alyse Emdur

Acres of hemp grown by “patriotic‚” U.S. farmers in 1942 at the behest of the U.S. government:

36,000

A study suggested that the health effects of exposure to nuclear radiation at Chernobyl were no worse than ill health resulting from smoking and normal urban air pollution.

Greenpeace apologized after activists accidentally defaced the site of Peru’s 2,000-year-old Nazca Lines when they unfurled cloth letters reading “time for change” near the ancient sand drawings. “We fully understand,” the group wrote in a statement, “that this looks bad.”

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

In Praise of Idleness

By

I hope that after reading the following pages the leaders of the Y. M. C. A. will start a campaign to induce good young men to do nothing. If so, I shall not have lived in vain.

Subscribe Today