GM pays no Federal Income Tax

[aussie muscle]

USA: Thanks, America! GM Pays No Federal Income Tax

General Motors, which, thanks to some help from the U.S. taxpayer, has earned more than $13 billion since 2009, said Thursday its worldwide tax rate will increase to as much as 13%. But, as David Shepardson at the Detroit News points out, 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 to come thanks to a series of Treasury Department rulings on TARP dollars from 2008 letting GM use $18 billion in losses - from the "old GM" that was left behind in bankruptcy - to offset any profits. GM spokesman Jim Cain told Shepardson that the automaker pays "significant" state income taxes, but "we did not pay federal income tax last year," he said.

source: Jalopnik

[jpd80]

Originally Posted by aussie muscle

USA: Thanks, America! GM Pays No Federal Income Tax

General Motors, which, thanks to some help from the U.S. taxpayer, has earned more than $13 billion since 2009, said Thursday its worldwide tax rate will increase to as much as 13%. But, as David Shepardson at the Detroit News points out, 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 to come thanks to a series of Treasury Department rulings on TARP dollars from 2008 letting GM use $18 billion in losses - from the "old GM" that was left behind in bankruptcy - to offset any profits. GM spokesman Jim Cain told Shepardson that the automaker pays "significant" state income taxes, but "we did not pay federal income tax last year," he said.

source: Jalopnik

I don't consider it a huge deal, old GM was always going to go bankrupt and rather than extinguish the tax losses with it,
the government and federal judges approved tax deductions for new GM so there's already been plenty of oversight on this.

Also, Ford has considerable tax credits brought forward due to almost 30 billion in past losses so it's an even
playing field for Ford and GM, Chrysler and Fiat probably have the same deal too.

[Nikked]

Take note, Gillard...

[Dr Smith]

Originally Posted by jpd80

I don't consider it a huge deal, old GM was always going to go bankrupt and rather than extinguish the tax losses with it,
the government and federal judges approved tax deductions for new GM so there's already been plenty of oversight on this.

Also, Ford has considerable tax credits brought forward due to almost 30 billion in past losses so it's an even
playing field for Ford and GM, Chrysler and Fiat probably have the same deal too.

Except how many suppliers didn't get paid from old GM, maybe those tax credits should have been converted into some form of repayments for suppliers losses dealing with old-GM so that they could at least get some money back and GM could look into their faces with some honour.

[jpd80]

Originally Posted by Dr Smith

Except how many suppliers didn't get paid from old GM, maybe those tax credits should have been converted into some form of repayments for suppliers losses dealing with old-GM so that they could at least get some money back and GM could look into their faces with some honour.

From what I gather any suppliers who lost money with old GM in bankruptcy were given tax credits.

And it's not like investors didn't see trouble coming with GM, shares declined for months before going bankrupt..

[ltd_on20s]

Originally Posted by aussie muscle

USA: Thanks, America! GM Pays No Federal Income Tax

General Motors, which, thanks to some help from the U.S. taxpayer, has earned more than $13 billion since 2009, said Thursday its worldwide tax rate will increase to as much as 13%. But, as David Shepardson at the Detroit News points out, 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 to come thanks to a series of Treasury Department rulings on TARP dollars from 2008 letting GM use $18 billion in losses - from the "old GM" that was left behind in bankruptcy - to offset any profits. GM spokesman Jim Cain told Shepardson that the automaker pays "significant" state income taxes, but "we did not pay federal income tax last year," he said.

source: Jalopnik

goes to show you who the governments really look after...

[jpd80]

Well, Ford gets help too:

GM isn't alone among automakers that have paid little, if any, federal income taxes in recent years.

Ford Motor Co. has paid relatively low worldwide income taxes in recent years after it lost $30 billion between 2006 and 2008. It, too, has been able to use past losses to offset its profits.

Last year, Ford paid $268 million in worldwide income taxes — up from $73 million — on income of $7.8 billion, excluding $12.4 billion in deferred tax assets. Ford doesn't disclose how much it pays in individual countries, or whether it has paid any U.S. federal income taxes in recent years, spokesman Todd Nissen said.

From The Detroit News: http://www.detroitnews.com/article/2...#ixzz1uBPtfXeY

[HUNTER8]

Originally Posted by jpd80

Well, Ford gets help too:

You really can't compare the 2 as Ford didn't receive a bailout and didn't go bankrupt.
Ford is exploiting a legitmate business practice.