Saturday, October 26, 2013

No $4 billion tax break for JPMorgan's wrongdoing

Dear MoveOn member,

I'm James Dubick of the organization U.S. PIRG, and I started a petition to U.S. Attorney General Eric Holder, which says:

As you negotiate what is likely to be the largest bank settlement for wrongdoing in U.S. history, please don't let JPMorgan deduct the settlement from their taxes. If they are allowed to do so, it could stick American taxpayers with a $4.5 billion tab.

JPMorgan is about to negotiate a $13 billion settlement with the Department of Justice (DOJ) for mortgage lending abuses they allegedly committed during the housing crisis. However, taxpayers could end up underwriting more than $4.5 billion of that settlement. 

That's because JPMorgan is likely to claim the settlement as a tax deduction. Even though settlements like these are thought of as punishment for corporate wrongdoing, companies claim their settlement costs as tax write-offs all the time. They treat them as just another business expense. 

We can't let that happen. The financial crisis caused by banks' irresponsible practices landed us in a recession that we're still struggling to recover from. Taxpayers shouldn't have to pay any more for JPMorgan's bad actions. 

Tell the Department of Justice not to let JPMorgan take the settlement as a tax write-off.

The Department of Justice has the power to include a provision in JPMorgan's settlement that prohibits them from taking the settlement as a tax write-off. We just need to convince the DOJ to do the right thing. They've done it before, including with one of BP's settlements for the Gulf oil spill. 

The DOJ will be negotiating the final settlement deal with JPMorgan over the next few days, so we must move quickly to make sure the public doesn't get stuck footing a $4.5 billion tab.

Click here to add your name to this petition, and then pass it along to your friends.


–James Dubick

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This email was sent to eddie alfaro on October 26, 2013. To change your email address or update your contact info, click here. To remove yourself from this list, click here.

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