DEDICATED TO BJ ALUMS FOUNDER HARRY LIGGETT 1930-2014. BJ NEWSROOM LEGEND 1965-1995.
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Envision this: GM bailout benefits
China, not America
Despite making nearly all of its profits in the U.S., General Motors
reportedly pays little or no American taxes but paid China $908 million in taxes for the same year.
According to filing records from the Securities and Exchange Commission,
the automotive company paid $5 million in federal taxes in 2015 despite its
multi billion dollar earnings. When you factor in federal, state and local
taxes, GM paid zero.
The reason? GM received a $51 billion bailout, which included a $45.4
billion tax deduction, from the federal government.
The bailout initially came as a loan, with GM giving the U.S. Treasury
Department a 61% stake in the company. When the Treasury Department sold the
shares in 2013, taxpayers came up $10.5 short because the stock price dropped so much.
GM plans to increase production in China by 65% by the end of 2020, primarily
the Buick Envision SUV. So if you buy an Envision, you're benefitting China, not America.
GM’s response: Since 2009, it has invested $17.8 billion in the U.S.,
creating 6,250 jobs and saving another 20,700.
GM isn’t alone. Standard and Poor’s 500 reports that 26 other companies paid
no taxes despite reporting large pre-tax profits, including telecom firm Level
3 Communications, Hewlitt Packard and airlines United Continental and American