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Plan gives tax break to subprime lenders

August 14, 2008 8:11:53 AM PDT
There's a proposal on the table in Sacramento that could give big tax breaks to the subprime mortgage industry.According to the L.A. Times, the plan would give a tax break to many large financial companies suffering record losses, including subprime lenders. The plan was introduced by Governor Arnold Schwarzenegger's administration.

Debate over the plan is being blamed for budget deadlock.

Opponents say smaller businesses that have had more modest revenue would not benefit from the tax break at all.


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