Wednesday, March 24, 2010

Obama's Favorite Banker Gets Billion Dollar Tax Break

JPMorgan Chase, headed by Obama's favorite banker, Jamie Dimon,  is near a deal that would allow it to benefit from a tax refund of as much as $1.4 billion, as the result of a little-noticed plank in an economic stimulus bill, reports WSJ.

As I have said, many times before, most legislation that now goes through Congress contains paragraphs and provisions that few understand (sometimes less than five people). Yet, the few who do understand benefit dramatically by the provisions.

In the securities business, I know a complex provision (too complex to explain in a blog post) that perhaps a dozen people on Wall Street truly understand.  Yet, those dozen who do understand the provision  are taking advantage of it to the tune of millions a year. At the same time the provision distorts and makes it exceedingly difficult for small companies to raise money.

These types of provisions, you can safely bet, are all over the ObamaCare legislation. It will distort healthcare in America for the advantage of those who had the power to insert this or that provision in the legislation.

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