WSJ: GM Will Avoid Taxes on Up to $50 Billion in Profit

[thundley4]

The Wall Street Journal is reporting that General Motors won’t have to pay federal taxes on up to $50 billion in profit, thanks to a provision of its government bailout.

GM may use these tax-loss carry-forwards for up to 20 years, the Journal reported, citing people familiar with the situation.

Based on the standard federal corporate tax rate of 35%, the tax break is potentially worth $17.5 billion to GM, not including tax deductions.

http://blogs.barrons.com/stockstowatchtoday/2010/11/02/wsj-gm-will-avoid-taxes-on-up-to-50-billion-in-profit/

Basically another bailout for GM.  ???

[true_blood]

Saw that today on Fox Business Channel.
Great, huh?!?! >

[SSG Snuggle Bunny]

So Obama has created an environment that materially benefits GM with money that doesn't belong to it while it puts Ford at a disadvantage for not taking taxpayer money.

Ford should de-unionize to make up the difference.