The dollars are still flowing from the U.S. Treasury to General Motors.<\/p>\n
There\u2019s been a lot of talk about GM\u2019s relisting on the stock exchange this week. This is supposed to be evidence that bailout funds are being paid back and GM is on the road to sobriety. But there\u2019s something you probably did not know.<\/p>\n
Companies that experience a significant ownership change typically lose access to a tax benefit enabling them to count prior losses and various other expenses\u2014including pensions\u2014against future earnings for tax purposes. In 2009 the federal government quietly decided that companies receiving bailout funds under the TARP program would be exempt from this restriction. This means that GM will be able to count up to $45 billion in pre-bankruptcy losses against future profits for up to 20 years.<\/p>\n
When the GM bailout was initiated, I argued that GM WOULD BE PROFITABLE EVENTUALLY because leftists in government would continue to channel taxpayer funds, breaks, and subsidies to keep the company afloat. Whether it\u2019s the original bailout, cash for clunkers, pension \u201creform\u201d that reduces or eliminates the GM pension burden, \u201cgreen\u201d subsidies, or tax loopholes, the Obama administration has a vested interest in the company\u2019s survival.<\/p>\n
This loophole is further evidence that the GM bailout was simply a bad idea. It\u2019s also a textbook example of why there\u2019s no such thing as fair competition when the government has a horse in the race. \u00a0Perhaps the new Congress should take action to eliminate the loophole for GM and other bailout companies. I\u2019m getting ready to pass this suggestion along to my new Congressman.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The dollars are still flowing from the U.S. Treasury to General Motors. There\u2019s been a lot of talk about GM\u2019s relisting on the stock exchange this week. This is supposed to be evidence that bailout funds are being paid back and GM is on the road to sobriety. But there\u2019s something you probably did not […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts\/280"}],"collection":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=280"}],"version-history":[{"count":0,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts\/280\/revisions"}],"wp:attachment":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}