Obama's special interests, the bailouts are even bigger than realized
General Motors Co. won't have to pay up to $50 billion in taxes under an unusual provision of its government-funded bailout, giving the car maker an added boost as it prepares to return to the stock market this month.
GM may use so-called tax-loss carry-forwards to shield its profit from taxes for up to 20 years, according to people familiar with the situation. The benefit is based on losses that GM incurred in years prior to when it entered bankruptcy.
Usually, companies that undergo a significant change in ownership risk having major restrictions put on their tax-loss carry-forwards. The U.S. bailout of GM, in which the Treasury took a 61% stake in the car maker, ordinarily would have resulted in GM having such limits put on its tax benefit, according to tax experts.
But the federal government decided that companies that received U.S. bailout money under the Troubled Asset Relief Program won't fall under that rule. . . .
Thanks to Tony Troglio for the link.