Private Equity Is Debt Fueled Job Destruction Tax Scheme- Inside Story, The Schwarzman Eight

[billparish11]

Absolutely. Federal tax credits trade freely and that is probably a good thing. You may philisophically disagree with their ability to be traded yet that is how they were structured.

Tax deductions are quite different in that they can not be traded in such a manner. There are many reasons this is the case. And if the deductions are owned by tax exempt public pensions, they really don't exist and therefore can't be traded. To do so would provide a double deduction for the same thing.

[LinkinPark640]

@billparish11 I honestly had a hard time to follow you,from what I've understood,PE firms's targets gets high tax deductions entailed by the interests expenses generated by the tremendous debt piled by the PE dudes ??? Thus they can rip off the company without paying a dime to uncle Sam.......

When you say that can tax deductions can be traded,do you mean like any other off public market common security ??

[GoldenAgeMuse]

Am I understanding correctly... I was one of 6 starting a new biodiesel company. We would receive a Federal Tax Credit from the Government for starting an alternative fuel business.... but we already began in Debt... we had plenty of write offs... we were then told that we could sell our Federal Tax Credit. Would these credits be selling in the commodities market as well? So basically, Federal Tax Credits were traded?