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After racking up billions in debt, getting a gov't bailout and filing for bankruptcy, GM may now...

After racking up billions in debt, getting a gov't bailout and filing for bankruptcy, GM may now be eligible for tax breaks worth up to $45.4B, thanks to a little-noticed federal ruling last year allowing recipients of TARP bailout money to use tax-loss carry-forwards.
Comments (6)
  • montanamark
    , contributor
    Comments (1434) | Send Message
     
    corruption at its best. now GM will have more $ (stolen from us taxpayer) to make campaign contributions to obama and dems.

     

    "little noticed" rape, pillage and corruption

     

    how about compensating the bond holders who were held up by obama
    3 Nov 2010, 08:52 AM Reply Like
  • Duude
    , contributor
    Comments (3358) | Send Message
     
    "The government's rationale, said people familiar with the situation, is that the profit-shielding tax credit makes the bailed-out companies more attractive to investors, and that the value of the benefit is greater than the lost tax payments, especially since the tax payments would not exist if the companies fail."

     

    So why don't they use that same rationale regarding the US ridiculously high corporate tax rate? But what's really very wrong is any company that benefits from an actual bankruptcy filing ought not also benefit from prior year tax losses.
    3 Nov 2010, 08:57 AM Reply Like
  • Diggintunnels
    , contributor
    Comments (331) | Send Message
     
    Well what happened to that 'investment' the government made in GM? Looks like it is going to have some serious negative returns. This is par for the course, until corporatism/picking winners ends, we will not be able to figure out how to compete in the real global market. I keep looking for the enumerated power in the Constitution that allows the federal government to use my tax money to bail out private companies, but I just can't seem to find that language...
    3 Nov 2010, 08:58 AM Reply Like
  • Rickthegeek
    , contributor
    Comments (118) | Send Message
     
    These are the things that don't make any sense. Vote them all out and be done with it. It is robbing the American people.
    3 Nov 2010, 09:17 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    We're familiar with this story. A company is too big to fail because if allowed to fail, the devastation on the local and national economy would be too great to face. The bailout occurs, but the devastation just takes a little longer--or perhaps a few lost decades longer.
    3 Nov 2010, 09:25 AM Reply Like
  • Olilea
    , contributor
    Comment (1) | Send Message
     
    I don't agree with the tax advantage that GM will have over other us car companies .... Bad for free trade
    But we should remember under with conditions this bailout was needed.. All the job saved ... And as tax payer, we are getting a return on investment ... Could have been done differently,ok ...Now, we need regulation to insure that it does not happen again ...
    3 Nov 2010, 09:46 AM Reply Like
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