Posted on 02/16/2012 11:21:19 AM PST by jazusamo
General Motors reported year end earnings figures today. The company made about $9 billion dollars in 2011. How much of its "fair share" is GM paying in taxes? Zero. In fact, from GM's financial report, they actually received a "benefit" of $110 million for the year. The UAW benefited as well, as they are set to receive $7,000 per worker in profit sharing bonuses.
The sweet tax deal GM receives was set up by the Obama Administration as the company was granted a multi-billion dollar tax credit for loss carry-overs when they exited their bankruptcy proceeding. Normally, the company would not have received the tax credit but the bankruptcy process was anything but normal. Creditors were put in the back of the line to protect UAW interests and tax code was changed so that GM could profit for years without paying its fair share in taxes. President Obama now campaigns on the perceived success at GM and any help he can give to the company will result in additional votes come November. As taxpayers lose out, GM profits and shares the wealth with the politically favored UAW.
Despite all the claims of sacrifices at the UAW, members continue to benefit as evidenced by the $7,000 profit sharing checks they will receive as a result of the wealth redistribution scheme orchestrated by the Obama Administration. Executives at GM seem to be doing pretty well also as they receive millions of dollars in stock options. For their part, the UAW has agreed to strongly support the President come election time. And the hypocrisy of GM's tax deal is obvious as Obama makes claims that corporations need to pay their fair share. Crony corporations like GM and General Electric (which also is known to avoid taxes) are conveniently left out of the criticisms. Also on the favored list are wealthy purchasers of Chevy Volts who receive federal tax credits of $7500 to buy the cars. President Obama wants the rich buyers to have even more wealth redistributed to them in the form of higher credits, which he reportedly wants to raise to $10,000.
The GM earnings report seems to be getting favorable reviews as the share price rose on the news. Considering the $50 billion that taxpayers forked over to bailout GM along with the sweet tax deal, it is understandable that the company seems to be on the road to recovery. There was some evidence of roadblocks, however, as European woes surfaced and pension obligations rose to over $25 billion. Government Motors has recently announced that non-union salaried employees will have their pensions frozen. The company also is looking in to cutting white collar workers. It seems that the goal of job creation and preservation at GM only applies to union workers.
I can not fault the individual UAW workers at GM for benefiting from the political actions of the Obama Administration and GM. I'm sure many of them are hard working individuals. The problem is, most of the rest of us do not have the benefit of belonging to politically favored unions. Non-union taxpayers are picking up the tab for those favored classes that help with President Obama's election campaign. And that's just not "fair."
Mark Modica is an NLPC Associate Fellow.
This tax credit is for all EV’s that qualify and includes the Chevy Volt and Nissan Leaf.
Working link:
http://nlpc.org/stories/2012/02/16/gm-pays-less-tax-buffet%E2%80%99s-secretary-uaw-profits
What does it matter how much taxes GM pays if the feds give them billions more than they pay? If I pay $100k in taxes, but get $200k in subsidies, does it mean that I have paid any taxes?
Obama made a sweet deal for GM for the assured support of the UAW, his IRS even changed the law. Now GM pays no income tax due to the agreement and GM gives union workers a $7,000 bonus.
It’s outrageous but it’s the Chicago Way.
NOPE
It means the money laundering process is alive and well.
And THE GREAT DEMOCRAT MONEY MACHINE keeps chugging along.
Apparently it will take time for a boycott by decent Americans to kill GM, but it’s still worth doing. I would be disgusted with myself if I ever again purchased a GM product. This company is dead to me - forever - because of the way their stiffed the rightful claimants on their assets in violation of contract law, bankruptcy law, and common law.
If only. If only ONE of our GOP candidates would EXPOSE this fraudulent crap — hit it hard, non-stop.
I’m afraid, however, then at least one of them, if not more, would go right along with it.
Tell us — WHICH one would oppose this sort of thing? Which one would put a stop to it?? Will they even bring it up in any of the upcoming debates?
“profit”-alert ping
I will not buy a GM or Chrysler vehicle in my lifetime.
I can think of one who went after corruption in both parties when she was governor and would put an end to this massive waste of our money. I have no doubt that is why the GOP insiders are backing Romney and not her. Sadly, she's not running.
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