GM's Ongoing Tax Break From Uncle Barack
General Motors didn't have a very good second quarter, as the Associated Press's Tom Krisher duly noted on Thursday.
What Krisher didn't note, and what almost no one in the establishment press ever notes, is the fact that the company doesn't have to pay any income taxes on its U.S. profits until it uses up losses carried forward from before its 2009 bankruptcy filing accompanied by at least $50 billion in government capitalization -- something other companies emerging from bankruptcy are almost never allowed to do. Based on the company's reported North American income for the quarter of $2 billion, most of which would have been realized on U.S. business, taxpayers subsidized the company to the tune of several hundred million dollars in just three months.
Another item the press routinely ignores is how high its dealers' inventories are, as seen in the company-published graphic which follows:
This is significant for two reasons. First, since the company, in accordance with generally accepted accounting principles, recognizes a vehicle sale when it leaves the plant, it's booking revenues far in advance of when a consumer actually ends up buying it. Second, if the vehicle market heads south in the coming months, and there is some reason to believe this is already happening (GM was down 6% year over year in June, and Ford was down 4%; most other makers did well, but GM and Ford may be bellwethers), dealers will be forced to slash prices to move their merchandise, and will push back hard if the company tries to force too many vehicles onto their already crowded lots.
Don't ever expect the press to spend a lot of time on this -- at least while President Obama continues to tout the GM bailout as one of his administration's signature achievements.
Read more: http://newsbusters.org/node/57733#ixzz22cyADLaO
Top Opinion
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Red_Horse 2012/08/04 21:50:14
More democrap fraud on their GM boasts.
Preach your sky is falling rhetoric somewhere else...
http://www.forbes.com/sites/j...
GM should have went through the Chapter 11 process because that is what chapter 11 was set up for. Instead, you had a group of people that never ran a damn thing taking our money and throwing it at something they had no clue about. Wasting billions in the process, if it would have gone under Chapter 11, the end game would have been putting less money towards GM to help it's survival and all would have been better off. Instead they liquidated old GM and the money disappeared into thin air on that and the money thrown at GM went to building GM plants in China to employ Chinese.
The other screw up by our government was throwing money at Chrysler when Fiat had planed to buy them but stopped in their tracks when Fiat found out that the government was going to buy it for them.
Read the update at the bottom of the story...
http://nlpc.org/stories/2012/...
Guess we never knew unril now that GMC actually meant General Motors China
Government Motors: Feds keep expanding fleet of cars
http://www.washingtontimes.co...
Government Motors Spends $600M on UK Soccer Promo
http://freebeacon.com/governm...
The American taxpayer is getting reamed, big time!
GM has about 73,000 employees in the United States and about 266,000 people around the world. Now, there's some outsourcing for ya!
Intended Cars
To Use Gasoline
http://rense.com/general67/FO...
I thought the Olympics were for the whole country and all those countries we invited to join us.
I suppose we could have let some other country host the games and cut our losses ... eh?
The fact is Romney uses his supposed rescue of the winter (not the olympics, just the winter olympics) as a badge of honor. But he had govt. money to do it with. Isn't govt. money an anathema to republicans who hate government funding?
Actually, Salt Lake City would be very capable of hosting the Summer games as well. Romney not only saved the games (which were $350 Million in the hole already) but refused to take a salary and kicked in $1.4 million out of pocket.
Yes, hosting the Olympics is a ''whole country effort". That began with the 1984 Los Angeles games when the Feds kicked in $100 Million. That figure multiplied by 6 and became $609 Million for the Atlanta 1996 games and doubled for the Salt Lake City games.
Who knows what the cost would have been to make Chitcago presentable had 0bozo, the Wookie and her entourage of celebrities, (and multiple aircraft) put in a realistic argument for the 2016 games? However, the Olympic committee made a wise choice, knocked out the USA's murder capitol in the first round and Chitcago wasn't even considered.