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GM could get a $45B tax break

Taxpayers' final gift to the bailed-out automaker could be billions of dollars in tax-free profits.

By MSNMoney partner Nov 3, 2010 1:44PM
General Motors qualifies for a whopping tax break -- as much as $45 billion -- as part of its taxpayer-backed restructuring, according to documents filed with federal regulators in April.

 


The Wall Street Journal reports that GM would not have to pay federal taxes on up to $45 billion in profits, an amount that includes more than $18 billion of carry-forwards.

 

This means losses the automaker incurred before its government-funded bankruptcy can offset future tax liabilities under the Troubled Asset Relief Program.


Read the Journal's full report here.

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14Comments
AngelofFire
Nov 3, 2010 4:10PM
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Well, if companies like GM get rewards for F'ing up then citizens such as myself who work so hard to make this country a better country should get a mortgage loan to buy my first home with 0% interest, 0% in property taxes, and 0% in personal taxes for the next 30 years.  Let me tell you this people, company owners never lose, the ones who lose are the hard working people that work for those companies period.
VICIOUS MISANTHROPE HATING FOR SPORT
Nov 3, 2010 2:53PM
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Gee, no wonder democrats say that republicans are the party of big business............​.......no messing around with 16% cap. gains taxes...............​just start by completely negating all bankruptcy laws and rules, then lend twice as much money as there is capital to act as collateral, .......but do that @ "0%" interest.......with no timeline for payback, spice that up with a taxpayer gift of cash for clunkers and NOW the dessert of 45 billion dollars of TAX FREE PROFITS!

 

Nice of the federal government to not send in the marines to kill all of the personnel of FORD, that would be the only concession toward anything even  resembling a fair marketplace! 

Opalholic
Nov 3, 2010 4:46PM
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And our administration gets hot when talking about tax breaks for the rich! $45 BILLION tax-free?  Hypocrites!!! Just goes to show that Wall Street, Fannie/Freddie & Big Business mean more to them than Main Street!  The average guy voted for hope & change, and instead  got rope & chains.... 
My Bank
Nov 3, 2010 3:19PM
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If we have to give out tax breaks lets give them to companies like Ford who did not take federal money. Time to take care of the people and companies in the US who do things the right way and punish those who don't.
Taxpayer 1
Nov 3, 2010 2:31PM
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The gravy train never ends when it comes to the union hacks.
ST CROIX
Nov 3, 2010 6:18PM
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ZERO INCREASE FOR SOCIAL SECURITY FOLKS AND 45 BILLION PAID AGAIN  BY THE TAXPAYER FOR GM, WHAT A DEAL KARL MAX WOULD BE PROUD

vinman2
Nov 3, 2010 4:56PM
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Under Clinton we had Johnny Cash and Bob Hope, under OBummer there is no cash or any hope.
Sunny outlook
Nov 3, 2010 3:49PM
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GM has had enough help already...time to give a break to a company which deserves to be saved and helped!

PEARL HIX (Pearl 100)
Nov 3, 2010 3:46PM
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It s much better to give an American Company a tax break than it is to send our money all over the world to help those that hate us. Maybe we need to give more Companies a tax break, if they bring their jobs back to the US, instead of subsidizing them to take jobs out of the US.
Someone (Lee_MA)
Nov 3, 2010 2:41PM
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We hear those on the right talking about how U.S. businesses are at a tax disadvantage to foreign companies. What they fail to tell you is after the companies have taken advantage of all the tax loop holes their tax rate is better than or equal to the foreign companies.

D Horn
Nov 3, 2010 7:46PM
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With those kind of tax breaks, Dem's can count on some real return of investment from the UAW.
Jazzman22
Nov 4, 2010 12:52PM
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The republican administration is what got us into this mess, what make anyone think that they will change for the middle class.....
Head hunting by the senate
Nov 3, 2010 3:14PM
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Thiefs aren't they!! God I hope the republicans can get this mess straightened up before we all go 6ft under a pile of sh-t!!
68025trust
Nov 3, 2010 2:53PM
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Goodness....isn't it just great we (the american people) did not just let GM go into bankruptcy but rather loan them money first so they can then go bankrupt and then get a $45B tax break! Another thank you goes out to Obama, Pelosi and Reid.
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