Report: GM to get $14 billion domestic tax break
Filed under: Government/Legal, GM
It looks like General Motors will be able to skip out on around $14 billion worth of taxes domestically and another $19 billion in taxes overseas thanks to a deal with the U.S. government. According to Edmunds, 2010 will mark the first year since 2004 that the company has operated in the black, and while most companies are made to pay taxes on their revenue, GM will be able to skip its tax tab due to years of massive losses. Companies are typically forgiven a portion of future taxes due to their past losses, but that benefit is typically stripped after an organization goes through bankruptcy.
That’s not the case with GM, however. For reasons that aren’t entirely clear, The General has managed to hang on to its tax breaks despite shedding around $30 billion in debt during bankruptcy proceedings. According to CNN Money, both GM and the Treasury Department deny that the automaker has received any special deal, though Edmunds reports that GM may have gotten the break to help reduce the perceived cost of the auto industry bailout.
Report: GM to get $14 billion domestic tax break originally appeared on Autoblog on Wed, 23 Feb 2011 18:30:00 EST. Please see our terms for use of feeds.
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