Left pushes to trim JPMorgan tax breaks on settlement

Liberal advocacy groups are mounting pressure on the Justice Department to bar JPMorgan from deducting from the bank’s taxes any portion of a broad government settlement in the works.

The reportedly $13 billion settlement over the bank’s mortgage activities before the financial crisis, which is still being hammered out, would be the largest such settlement in U.S. history. But reports that JPMorgan is seeking use up to $4 billion of the settlement as a tax write-off has led to protests from liberal groups and lawmakers.

On Monday, two groups delivered over 160,000 petitions to the Justice Department calling for barring any potential tax benefit. The groups, U.S. PIRG and Americans for Tax Fairness, argue it is patently unfair for taxpayers to help subsidize JPMorgan’s fines through the tax code.

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“The American people were already victimized once by Wall Street’s malfeasance. They should not be victimized again by having to pick up more of the tab,” said Frank Clemente, campaign manager for Americans for Tax Fairness. “The Obama administration should be helping homeowners with underwater mortgages, not be giving tax breaks to the banks that put them there.”

 The potential tax perk has also attracted attention on Capitol Hill. Five U.S. senators wrote to Attorney General Eric HolderEric H. HolderFBI director defends agency after Trump attacks: It's an 'honor to represent you' FBI agents fire back at Trump: Saying we're not dedicated is 'simply false' Holder hits back at Trump: The FBI’s reputation is not in 'tatters' MORE Tuesday, urging him to explicitly prevent any tax writeoffs under the settlement. That letter was signed by Sens. Mazie HironoMazie Keiko HironoDemocrats turn on Al Franken The Hill's 12:30 Report Avalanche of Democratic senators say Franken should resign MORE (Hawaii), Bill NelsonClarence (Bill) William NelsonOvernight Health Care: Ryan's office warns he wasn't part of ObamaCare deal | House conservatives push for mandate repeal in final tax bill | Dem wants probe into CVS-Aetna merger Ryan's office warning he wasn't part of deal on ObamaCare: source Overnight Health Care: Funding bill could provide help for children's health program | Questions for CVS-Aetna deal | Collins doubles funding ask for ObamaCare bill MORE (Fla.), Martin HeinrichMartin Trevor HeinrichAvalanche of Democratic senators say Franken should resign Senators introduce bipartisan gun background check bill Dem senator: 'Super close' on bipartisan deal on guns MORE (N.M.), Sheldon WhitehouseSheldon WhitehouseOvernight Regulation: Net neutrality supporters predict tough court battle | Watchdog to investigate EPA chief's meeting with industry group | Ex-Volkswagen exec gets 7 years for emissions cheating Overnight Energy: Watchdog probes Pruitt speech to mining group | EPA chief promises to let climate scientists present their work | Volkswagen manager gets 7 years for emissions cheating EPA head pledges to protect climate scientists MORE (R.I.) and Elizabeth WarrenElizabeth Ann WarrenOvernight Regulation: Net neutrality supporters predict tough court battle | Watchdog to investigate EPA chief's meeting with industry group | Ex-Volkswagen exec gets 7 years for emissions cheating Overnight Tech: Net neutrality supporters predict tough court fight | Warren backs bid to block AT&T, Time Warner merger | NC county refuses to pay ransom to hackers Avalanche of Democratic senators say Franken should resign MORE (Mass.).

In the House, Reps. Peter WelchPeter Francis WelchTrump talks tough but little action seen on drug prices Frustrated with Trump, Dems introduce drug pricing bill Lawmakers try again on miners’ pension bill MORE (D-Vt.) and Luis GutierrezLuis Vicente GutierrezWe are running out of time to protect Dreamers Gutiérrez makes moves toward presidential run: report Gutiérrez leaving Congress, rules out bid for mayor, governor MORE (D-Ill.) introducing legislation barring companies from using the tax code to deduct costs from government settlements, and Welch also sent a letter to the bank’s chief executive, Jamie Dimon, urging him to avoid the writeoff.

While the bulk of the settlement is still being finalized, the Federal Housing Finance Agency announced in October it had struck a $4 billion settlement with the bank, after it charged JPMorgan broke securities laws when it sold securities loaded with risky mortgages to Fannie Mae and Freddie Mac.