06-05-2011, 07:57 PM
Speaking of Bank Bailouts . . .
Here's an excerpt from the WSJ re: Auto Industry Bailouts -
"But this doesn't mean that taxpayers are off the hook. They are still likely to end up with a multibillion dollar bill—nearly $14 billion, according to current White House estimates."
"But the $14 billion figure omits the cost of the previously accumulated tax losses GM can apply against future profits, thanks to a special post-bailout government gift. The ordinary rule is that these losses can only be preserved after bankruptcy if the company is restructured—not if it's sold.
By waiving this rule, the government saved GM at least $12 billion to $13 billion in future taxes, a large chunk of which (not all, because taxpayers also own GM stock) came straight out of taxpayers' pockets."
Okay . . . I'm confused. I thought Obama stated corps and the "fortunate" need to pay more. Go figure.
Full article here: http://online.wsj.com/article/SB10001424...lenews_wsj
Here's an excerpt from the WSJ re: Auto Industry Bailouts -
"But this doesn't mean that taxpayers are off the hook. They are still likely to end up with a multibillion dollar bill—nearly $14 billion, according to current White House estimates."
"But the $14 billion figure omits the cost of the previously accumulated tax losses GM can apply against future profits, thanks to a special post-bailout government gift. The ordinary rule is that these losses can only be preserved after bankruptcy if the company is restructured—not if it's sold.
By waiving this rule, the government saved GM at least $12 billion to $13 billion in future taxes, a large chunk of which (not all, because taxpayers also own GM stock) came straight out of taxpayers' pockets."
Okay . . . I'm confused. I thought Obama stated corps and the "fortunate" need to pay more. Go figure.
Full article here: http://online.wsj.com/article/SB10001424...lenews_wsj