• Feb 23rd 2011 at 6:30PM
  • Add
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.

[Sources: Edmunds, CNN Money]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • 2015 Toyota Highlander
    MSRP: $29,765 - $44,140
    2015 Honda Accord
    MSRP: $22,105 - $33,630
    2015 Toyota Corolla
    MSRP: $16,950 - $22,955
    2015 Mazda Mazda3
    MSRP: $16,945 - $25,545
    2015 Jeep Grand Cherokee
    MSRP: $29,995 - $64,895
    Share This Photo X