Fannie, Freddie and tax avoidance
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?