[lbo-talk] Obama defends Republic workers

martin mschiller at pobox.com
Mon Dec 8 13:30:29 PST 2008


On Dec 8, 2008, at 1:10 PM, Jordan Hayes wrote:


> The 'forgiveness of debt' is 'ordinary income' (so long as it isn't
> a 'non-recourse' loan, which most of these aren't) ... so, it's just
> like you "earned" it. Whoever you pay taxes to (federal, state,
> local) will see it as a 1099-C.

So the banks 'forgive' the debt, but the gov't doesn't ? My initial reaction is that the banks should be taking control of the gov't rather than the obverse. <g>

reactionarily, martin



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