Vetoed Bank Profit Congressional Intent Quick Fix Act

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A
BILL
To

Clarify the Bank Profit Fix Act and Amend the Taxation Act​

1 - Short Title
(1) This Act may be cited as the 'Bank Profit Congressional Intent Quick Fix Act'
(2) This Act shall be enacted immediately after the Bank Profit Fix Act changes have been applied to the Taxation Act.
(3) This Act has been authored by ToadKing and PoS Omegabiebel.
(4) This Act has been co-sponsored by PoS Omegabiebel.

2 - Reason
(1) To clarify legislative intent regarding loss carry-forward eligibility.

3 - Amendment
(1) Section 7 of the Taxation Act is amended as follows:

"7 - Financial Records and Reporting
(1) Deposit-taking financial institutions must keep detailed accounts of their investment revenue and obligations to their depositors.
(a) Should deposit-taking financial institutions misrepresent their profits to the Department of Commerce, the entity will be liable for prosecution.
(b) Profit shall be calculated as revenue less minus operating costs expenses for the reporting period, minus any losses carried forward from prior reporting periods.
(i) Loss Carry-forward: Any loss (negative profit) reported to the Department of Commerce in a previous monthly Financial Report may be carried forward to offset profits in subsequent periods up to the amount not yet offset in previous reporting periods.
(ii) Only losses that were reported in previously submitted Financial Reports may be carried forward. Losses not previously reported are not eligible for carry-forward.
(iii) The reporting period shall run from the date in the last report or, in the first report, the first day of trading.
(iv) Previous Financial Report shall mean all previous financial reports as of the date of that report, regardless of any past or future enactment of any Act.

(2) Deposit-taking financial institutions are required to report to the Department of Commerce by the end of the first week of the succeeding month:"

 

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Veto

This bill sneakily changes the way that expenses are deducted. At present, the law defines "profit" as revenues less operating expenses. The change allows for deductions for capital expenses in an accelerated manner (we have no laws governing depreciation timelines), and would allow people to claim credit for things like property taxes and interest expense. It is not a simple quick-fix law as proposed: it allows financial institutions a lot more ways to creatively evade taxes through accounting tricks.

The law change would move the carry forward from starting in November 2025 to having an unlimited window. This amounts to a giant tax break for longstanding financial firms like co-sponsor and co-author Omegabiebel's Volt that already pay far too little in taxes. I do not agree with bills that specifically benefit their authors/sponsors.