EASY STREET: GM Profits In 2011 Tied To Company Not Having To Pay Any Federal Taxes

not surprised one bit.

here is what i posted at Autoblog last year with -7 reputation from people who cannot see the truth. obviously some info are out of date giving the time of my post, but most are held true.

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not only do you not get the bailout money back, they will enjoy a lot of benefit from it. in fact, GM claimed that already payed back the loan last year.
it is important to remember government gave a total of 49.5 billion dollars to GM. Only 6.7 billion of which is loan that REQUIRES GM to payback, the rest money was giving to old GM as form of purchase.
and why is that important? well, since only 6.7B is loan, the GM (or new GM) only required to pay 14% of what it received to declare "I PAYED BACK MY LOAN". Mr. Whitacre says GM has paid back the bailout money in full, he means not the entire $49.5 billion--the loan and the equity. In fact, he avoids all mention of that figure in his column. He meant only the $6.7 billion loan amount.
but how did GM paid back the bailout money last year when it did not make any money? As it turns out, the Obama administration put $13.4 billion of the aid money as "working capital" in an escrow account when the company was in bankruptcy. The company is using this escrow money--government money--to pay back the government loan.
in addition to that, the new GM is entitled for 16 billion in federal tax breaks as net operating loss from old GM. However, tax-loss carry forward should not be applied to new GM since tax code contains provisions that prohibit a profitable company from buying an unprofitable company for the sole purpose of claiming the unprofitable company's tax losses. Except for the fact that GM was bought by the government, and since the government writes the tax code and collects said taxes, it can decide how it wants to handle the companies it owns.

so the moral of the story:
GM took 50 billion dollars in total.
GM payed back 6.7 billion to declare it payed off the loan.
GM uses 13 billion government money to pay back that 6.7 billion.
GM bend the tax code to receive additional 16 billion dollar tax break.

net income: 50+16-6.7=59.3 billion dollar profit without doing anything, along with a good name that it payed back the loan 5 years ahead of schedule.

take that, U.S. taxpayers.

and that's why you don't want government to own company.

With every passing day, You have to admire Ford for taking on the challenges straight on and surviving without a handout.

It's not just GM, look at Apple, they pay next to nothing in taxes. It's interesting how large corporations that donate to political campaigns get such preferential treatment.

Crony capitalism from the likes of GE, GM and Solyndra who have all benefitted from cozy relationships with the Obama Administration is a huge problem. But don't expect a politician like Elizabeth Warren to raise the ethical standards in DC. This is a woman who claimed to be of native american ancestry in order to get a job at Harvard and pulls out the sexism card whenever something doesn't go her way. Hardly a paragon of decency.

Question for ghosthunter, Was the rest of the money purchased as stock and the US tax payers only lose money if we sell the stock at a loss?
not talking about the tax write offs!