Arlen Specter: “On behalf of Senator Santorum, I would like to discuss an issue with the chairman and the ranking member of the Finance…”

“On behalf of Senator Santorum, I would like to discuss an issue with the chairman and the ranking member of the Finance Committee relating to operating losses of a business. The tax bill extends the carry forward period for businesses with operating losses for an additional 5 years. But the provision only applies to operating losses incurred in future years. We are less concerned about the tax impact of allowing existing losses to expire than about the impact on companies for financial accounting purposes. Under the accounting standards, if the operating losses expire, some companies will see a major reduction in asset value. We would like for the chairman and the ranking member to consider this issue in conference.”