Skip to comments.Govt to lose $14B of auto bailout funds
Posted on 06/01/2011 12:08:11 PM PDT by Nachum
Washington The Obama administration said Wednesday that the government will lose about $14 billion in taxpayer funds from the bailout of the U.S. auto industry. In a report from the president's National Economic Council, officials said that figure is down from the 60 percent the Treasury Department originally estimated the government would lose following its $80 billion bailout of Chrysler and General Motors in 2009. The report's release coincides with the administration's efforts to tout the bailout's role in the revitalization of the U.S. auto industry after last week's announcement that Chrysler is repaying $5.9 billion in U.S.
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the government is NOT losing any money - the Taxpayers are the ones losing money. - puts wallet back in pocket...
UAW bailout - ya mean
We should make everyone involved in this personally liable for that money.
What is that, half a jet fighter, big deal...
Just place a lein against every vehicle title sold until it’s all repaid. Simple enough.
Not true and it is a very big deal.
This is the great “success” that Obozo wants to highlight for his re-election campaign?
The House always wins.
Anyone know if Chrysler Financial was part of the “bailout”? Because TD just acquired Chrysler Financial..
But, Alan Colmes was just saying how GM paid it all back.
General Motors Cost of Goods sold in 2010 was $118 billion.
Assuming like most businesses 70% of that cost is labor, then that’s $82.6 billion in salaries, and probably at least $15 Billion a year in income taxes that flows back to the Federal government.
So a one time shot of $14 billion to help bail them out during an economic crash is probably a sensible move.
The devil however is usually in the details. The problem is whether there were appropriate controls on the money and appropriate liens to get the money back.
I cannot buy your logic.
Where do you get the number of 15 billion coming back in tax money from union labor? AND even if it did, it still did not justify ripping off the bondholders when the restructuring deal was made. That is why the stock cannot ever come completely back. Who in their right mind would ever buy GM stock, knowing that the moment things go sour the investment would be confiscated by the government and then given to the unions?
Then, there is cost to our country of letting the union control public policy at the highest levels. The big union bosses were/are regular visitors to the White House. How much will THAT cost us in the end?
Also, why not factor in all the dealerships that were forced to close out of political partisanship. Why not factor in the factories that were moved/built in China and Mexico with these tax dollars? What about the jobs lost in these two events alone? At least 2 Billion was spent on foreign factories. Where is the tax revenue in that?
Sorry, these was a scam from the get go. Devil in the details indeed.
Last time I checked Union labor still paid income taxes. If my guestimate of $82 billion in labor costs is correct with a 20% tax rate = $16 billion. with a 15% tax rate = $12 billion.
The rest of your points are all valid.
My point was that if you save American jobs, some of those funds flow back to the government as Tax revenues, offsetting the cost of the bailout.
But to the extent that the funds were used to ship jobs overseas, or pay outlandish bonuses to political cronies, or install cronies on the board of GM, etc, etc, then it's a bad deal.
We shouldn't automatically be against bailouts during economic crises. But we need trustworthy stewards in office who will act in the best interest of the nation, and not take the money and run.