GM’s tax break worth as much as $45 billion

By Reuters
Posted Nov. 3, 2010 at 10:07 a.m.

General Motors can get a tax break of up to $45 billion as part of its U.S. government-financed restructuring, documents filed with federal regulators earlier this year showed.

The Wall Street Journal earlier reported that GM would not have to pay federal taxes on up to $50 billion in profits. A later version of this story revised this figure to about $45 billion.

This figure also includes $18.88 billion of carry-forwards, according to the automaker’s annual filing from April.

Under the Troubled Asset Relief Program, losses racked up by GM before its government-funded bankruptcy can be used to offset its future tax liabilities.

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  1. MinisterR Nov. 3, 2010 at 10:59 a.m.


  2. MaryMary Nov. 3, 2010 at 11:26 a.m.

    Corporate welfare!

  3. ed linn Nov. 3, 2010 at 11:38 a.m.

    Corporate Welfare that kept tens of thousands of people employed. Beats having them on unemployment !

  4. buster Nov. 3, 2010 at 1:19 pm

    WHAT A JOKE!!! WE bail them out and now they pay NO taxes. How about a NO BONUS policy until they start paying taxes ?

  5. new math Nov. 3, 2010 at 1:19 pm

    “Corporate Welfare that kept tens of thousands of people employed. Beats having them on unemployment !”
    45 billion divided by 25 thousand jobs saved equals 1.8 million dollars cost per job saved. Worth the cost?

  6. worth it Nov. 3, 2010 at 1:44 pm

    Yes, new math. It is worth it. Look at the “big picture” (the fragile economy and/or dopey investors who sell stock at any little rumor that pops up).

  7. Bud Nov. 3, 2010 at 1:56 pm

    “45 billion divided by 25 thousand jobs saved equals 1.8 million dollars cost per job saved. Worth the cost”

    Actually, New math, it was 1 Million jobs that were saved. It wasn’t just GM jobs but also a very long list of suppliers and other business that heavily relied on GM existing for them to exist too…So, it is infact $45,000 per job – I’m guessing you voted Republican yesterday…as you don’t seem to be very well informed !!

  8. MaryMary Nov. 3, 2010 at 2:05 pm

    Bud where did you get that figure from, the tooth fairy. Where is my bailout? Where are the jobs? Im so glad that wallstreet banks and the auto industry are doing well and can afford to pay bonuses.

  9. RomanB Nov. 3, 2010 at 2:55 pm

    Have no fear. That massive corporate tax break will trickle down to us common folks eventually. That’s what teabaggers keep saying.

  10. John C Nov. 3, 2010 at 6:46 pm

    Carring forward losses from a previously bankrupt company, WOW that is really criminal!

  11. Edward Norton Nov. 3, 2010 at 7:15 pm

    Wheres mine? Tired of big business getting all the money…REVOLUTION folks!!!!

  12. Michael Nov. 3, 2010 at 10:27 pm

    The deck seems stacked against the automakers that did not take the taxpayer’s money…this is insulting and wrong. What kind of message does this send to businesses? Become uncompetitive, create a product that is not appealing, totally mismanage your business and get bailed out by the taxpayers anyway. Wait a minute, what am I saying – this is not mismanagement – it is pure genius. GM can whitewash it’s poor business decisions behind the TARP tax break for years to come, until the bailout cycle starts all over again.

  13. Karl Nov. 3, 2010 at 10:50 pm

    The best estimate I have seen is that the fiscal cost of one million lost jobs is $54 billion PER YEAR. This is lost payroll and income tax revenue and increased costs like unemployment and food stamps.

    On the other hand, exempting $45 billion in income from corporate taxes costs $18.9 billion TOTAL FOR ALL YEARS at the top 35% tax rate. That is the maximum lost tax revenue that MIGHT occur if GM generates high profits.

    One can still argue about the merits of President Bush’s TARP program and its investment in GM. But let’s at least do it with correct numbers.

  14. Amazingoly Nov. 5, 2010 at 8:31 a.m.

    Pretty ridiculous with all the taxpayer money GM and the unions have received. Also, the Volt will be a complete disaster, and Americans don’t want GM vehicles as long as the government is still connected, including me.