Quote:
Originally Posted by srt
Again with the passage of time and no interest in checking the detail at this moment, I believe that the 19 billion figure is low and has not included everything. I just heard this weekend that the tax breaks to GM could be as high as 45 billion. The government lent Fiat money to payoff the bailout money at a lower rate and it looks good for the president in an election year. I certainly think the figure is low and the taxpayer has not seen the end to this debacle.
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I thought of this post when I read that neither Chrysler or GM paid any Federal Income Tax last year. Here's a link to a very well written report from the Detroit News -
click here
Here's an excerpt from the article:
A series of Treasury Department rulings since 2008 let GM use $18 billion in losses — from the "old GM" that was left behind in bankruptcy — to offset any profits.
GM had credits totaling $16 billion at the end of 2011, which means it can offset about $48 billion in future income.
So, if you add the $18 Billion tax reduction to the $19 Billion that's already been lost it adds up to $37 Billion.
Oh, and don't forget that Chrysler is owned by an Italian company that doesn't pay U.S. Income Taxes and Chrysler Financial was sold off to a Canadian company.
But the UAW's happy and Rattner's still convinced he's the smartest guy in the room.