A Great Deal For Who? General Motors Rakes In The Cash And Admits It Paid No Federal Taxes

General Motors Co., which has earned more than $13 billion since 2009, said Thursday its worldwide tax rate will increase to as much as 13 percent.

But the Detroit automaker, which reported $1 billion in profits for the first three months of the year, has legally avoided paying U.S. federal income taxes since exiting bankruptcy. And GM likely will pay no income taxes for many more years.

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 spokesman Jim Cain said the automaker pays "significant" state income taxes, but because of its prior losses doesn't incur federal tax liability. "We did not pay federal income tax last year," he said.

g2ok - 5/4/2012 5:26:33 PM

+6 Boost

Sounds like a corrupt kickback deal by the Feds.

4Mula1fan - 5/4/2012 5:53:05 PM

-2 Boost

That's a very Republican deal.. Not sure why there's a picture of Obama.

bfghemicuda - 5/5/2012 7:21:33 PM

+1 Boost

4Mula1fan,,,Because Obama and his hench-men did the deal. You must be blind to who the current Democrat politicians really are.