When General Motors exited their bankruptcy proceeding, Obama stepped in with $50 billion tax dollars to bail them out. Not only did they receive this money tax free, but the tax code was changed for them so that they could profit for years without paying their fair share in taxes. Isn’t it amazing how Obama seems to avoid talking about his little slush fund pals at GM when he rants on with his class warfare rhetoric about millionaires and billionaires not paying their fair share? Same with GE by the way. Well, this past financial year, GM reported earnings of $9 billion. How much did they pay in their fair share of taxes? A big fat $0. In fact, just to rub more salt into the wounds of the tax payers, they received a $110 million tax benefit. When Obama bailed out GM, he also protected the interests of the UAW – the union that has pledged to support Obama in November. All their blue-collar members are getting a $7000 bonus because of the good earnings – none of the union members can be fired, only non-union members can be fired and their pensions frozen at GM (it gets better and better). Yet Ford and other motor companies – which didn’t ask or receive any bailout from the government – are expected to not only be profitable on their own steam, but pay their fair share in taxes. So, just how fair is it in this false business world Obama has created? This is not a level playing field. Just how does this goon Obama get away with blatantly funding his supporters via the tax payer? Can you imagine what he’s going to do in the next 4 years should be be re-elected? I don’t think America can survive his dictatorship and spending on the credit card. But, from all estimates, there are enough dumb and liberal Americans to get him over the line.
General Motors reported year end earnings figures today. The company made about $9 billion dollars in 2011. How much of its “fair share” is GM paying in taxes? Zero. In fact, from GM’s financial report, they actually received a “benefit” of $110 million for the year. The UAW benefited as well, as they are set to receive $7,000 per worker in profit sharing bonuses.
The sweet tax deal GM receives was set up by the Obama Administration as the company was granted a multi-billion dollar tax credit for loss carry-overs when they exited their bankruptcy proceeding. Normally, the company would not have received the tax credit but the bankruptcy process was anything but normal. Creditors were put in the back of the line to protect UAW interests and tax code was changed so that GM could profit for years without paying its fair share in taxes. President Obama now campaigns on the perceived success at GM and any help he can give to the company will result in additional votes come November. As taxpayers lose out, GM profits and shares the wealth with the politically favored UAW.
Despite all the claims of sacrifices at the UAW, members continue to benefit as evidenced by the $7,000 profit sharing checks they will receive as a result of the wealth redistribution scheme orchestrated by the Obama Administration. Executives at GM seem to be doing pretty well also as they receive millions of dollars in stock options. For their part, the UAW has agreed to strongly support the President come election time. And the hypocrisy of GM’s tax deal is obvious as Obama makes claims that corporations need to pay their fair share. Crony corporations like GM and General Electric (which also is known to avoid taxes) are conveniently left out of the criticisms. Also on the favored list are wealthy purchasers of Chevy Volts who receive federal tax credits of $7500 to buy the cars. President Obama wants the rich buyers to have even more wealth redistributed to them in the form of higher credits, which he reportedly wants to raise to $10,000.
The GM earnings report seems to be getting favorable reviews as the share price rose on the news. Considering the $50 billion that taxpayers forked over to bailout GM along with the sweet tax deal, it is understandable that the company seems to be on the road to recovery. There was some evidence of roadblocks, however, as European woes surfaced and pension obligations rose to over $25 billion. Government Motors has recently announced that non-union salaried employees will have their pensions frozen. The company also is looking in to cutting white collar workers. It seems that the goal of job creation and preservation at GM only applies to union workers.
I can not fault the individual UAW workers at GM for benefiting from the political actions of the Obama Administration and GM. I’m sure many of them are hard working individuals. The problem is, most of the rest of us do not have the benefit of belonging to politically favored unions. Non-union taxpayers are picking up the tab for those favored classes that help with President Obama’s election campaign. And that’s just not “fair.”