The United States tax code will never be accused of being simple or easy to comprehend. With a tangle of exceptions and loopholes, individuals and corporations can work their way around paying their full income tax rate with ease.
According to The Detroit News, General Motors continues to avoid paying its federal income taxes since the company exited bankruptcy. In 2008, the Treasury Department ruled that the automaker could use $18 billion in losses from "old" GM to offset any profits. That means from a tax perspective, GM still hasn't earned enough money to overcome its losses. The automaker has raked in more than $13 billion since 2009.

Of course, GM isn't the only company dodging the federal income tax. Ford, for example, payed $268 million in worldwide income taxes last year, despite claiming an income of $7.8 billion. Likewise, since Chrysler Group, LLC. is a limited-liability partnership, it isn't required to pay federal income taxes. According to The Detroit News, very few companies pay the full 35 percent federal corporate income tax rate.

But that doesn't mean GM or other companies get off entirely. GM says it pays considerable state taxes, and the company reports that its global tax rate for 2012 may jump to 12 or 13 percent, up from an earlier estimate of 10 percent.


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  • 106 Comments
      The Other Bob
      • 2 Years Ago
      Keep in mind the companies like General Electric have not piad taxes either. This is a simptom of our entire corporate tax structure. The corperate rate means nothing today considerign all the write offs, off shoring and other ways to avoid taxes.
      BC
      • 2 Years Ago
      "Likewise, since Chrysler Group, LLC. is a limited-liability partnership, it isn't required to pay federal income taxes." It isn't required to pay corporate income tax. Tax liability is passed through to the partners, unless they choose to be taxed as a corporation.
      Eric F
      • 2 Years Ago
      "Likewise, since Chrysler Group, LLC. is a limited-liability partnership, it isn't required to pay federal income taxes." VERY very misleading. While the partnership may not pay taxes, the partners in the partnership will be allocated a portion of Chrysler Group's taxable income which they will have to report on their own tax return.
      IOMTT
      • 2 Years Ago
      The tax code is complex on purpose. If you simplified the tax code, politicians could no longer use it to punish or reward, businesses would no longer need to lobby and could eliminate manpower used for tax accounting and litigation, and perhaps you and I could file a return in a few minutes without any help. Seems like the biggest losers in tax code simplification are politicians, lawyers,the IRS, and the lobbying industry. Winners are everyone else. Bring it on.
      • 2 Years Ago
      [blocked]
      Bruce Lee
      • 2 Years Ago
      "payed $268 million in worldwide income" Really? Payed?
      • 2 Years Ago
      [blocked]
      BTCC
      • 2 Years Ago
      No problem. I REFUSE TO SUPPORT GM. BOYCOTT GM AND OBAMA'S UNION THUGS.
      DSM
      • 2 Years Ago
      Yet another reason not to purchase a GM vehicle. The govt should have never bailed them out in the first place.
        dan1malk
        • 2 Years Ago
        @DSM
        The funny thing is, is that if you ACTUALLY wanted your tax money back (and not just to be a complaining troll,) you should want GM to succeed, and for everyone to buy their vehicles so they can pay us back.
          DSM
          • 2 Years Ago
          @dan1malk
          As if WE (the tax payers) would ever actually see any of that money again...
          ngiotta
          • 2 Years Ago
          @dan1malk
          Your argument is invalid. A lot of people would have preferred that GM hadn't received the money in the first place-- hence we wouldn't have to get our money back. The real argument is that GM failing would have hurt suppliers and other manufacturers, which I both agree with and disagree with. Being tagged "too big to fail" is an unfair advantage to an elite few and promotes reckless corporate leadership.
      luckee8s
      • 2 Years Ago
      THIS IS CUSTOM TAX LAW BY THE TREASURY FOR GM AT TAXPAYERS EXPENSE!!!!!!!!!!!!!!!!! VIOLATING BANKRUPTCY LAWS THAT YOU AND I HAVE TO ABIDE BY!!!!!!!!!!!!!!!! REQUEST THE 70000+ TAX LAW FROM TREASURY DEPT AND SEE HOW LONG IT TAKES TO RECEIVE IT!!!!!!!!!!!!!!!!!!!!!!!!!!
      RobG
      • 2 Years Ago
      WHO CARES if they're paying taxes? Do YOU want to pay taxes? No? Me either. Taxes are bullshit. Taxes are supposed to fund a LIMITED government whose only job is to secure the borders. Instead they redistribute wealth to those who won't work. I'm tired of paying people who won't work and paying for illegals to go to college. Good for GM to not have to pay all these stupid taxes.
        Polly Prissy Pants
        • 2 Years Ago
        @RobG
        I don't mind paying my taxes. I get good roads to drive on, good schools for my kids, police and fire departments I trust to keep me safe and allow me to earn a living for my family, plus a whole lot of other things. The problem isn't taxes, it's that there are quite a few who are not paying their fair share. And if it helps, the more those under-contributors pay the less you and I have to pay in return.
          philips0811
          • 2 Years Ago
          @Polly Prissy Pants
          "not paying their fair share" are you talking about the 50% of Americans who pay no income tax?
          TrueDat
          • 2 Years Ago
          @Polly Prissy Pants
          "it's that there are quite a few who are not paying their fair share" you mean like the president himself, who come to find out payed a lower rate last year than his secretary. oops... http://abcnews.go.com/blogs/politics/2012/04/obamas-2011-tax-returns-show-20-5-percent-rate/
          Polly Prissy Pants
          • 2 Years Ago
          @Polly Prissy Pants
          "not paying their fair share" are you talking about the 50% of Americans who pay no income tax?" No, I'm not talking about senior citizens living off of Social Security, the unemployed, those living under the poverty level or the disabled, I'm talking about those like Warren Buffet, Stephen King and Bill Gates Sr. who agree that the wealthiest in the U.S. are not paying their fair share.
      ELG
      • 2 Years Ago
      funny how Obama doesn't mention GM and Chrysler while crying about corporate tax breaks. Perhaps it has something to do with unions being the 10 of the top 15 political donors
        Moreno636
        • 2 Years Ago
        @ELG
        You forgot Ford.
        sqparadox
        • 2 Years Ago
        @ELG
        Wow, I didn't think even it was possible to to twist this in a way that blames unions. Bravo, you have blown my expectations away.
        TrueDat
        • 2 Years Ago
        @ELG
        why would he? 99% of UAW political contributions in 2008 went to him! lol.. ever heard the old political saying, "dance with the one that brung ya,"?
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