Fannie, Freddie and tax avoidance
Posted at 10:50 am on 11 Sep 08 by Adam Lent
Richard Murphy notes the news that corporate tax avoidance was central to the weakness of Fannie and Freddie. ”Deferred tax” was a key part of the work Richard did for the TUC in The Missing Billions. The pamphlet critiqued deferred tax for the vast sums this technique denies to public funds. The fact that it may also have played a part in the current global crisis is obviously of enormous importance. How many UK banks are playing the same dangerous game?
[...] Adam Lent of the TUC has asked an obvious question following on from my blog about Fannie Mae and Freddie Mac relying on deferred taxation as part of their capital structure. As he puts it: [...]