Yes, you read that right…
Government Motors General Motors paid zero taxes, and because of fancy bookkeeping their tax rate was actually negative.
General Motors, in particular, paid less than zero taxes of 2011. And when the Administration brags that GM reported a $7.6 billion profit in 2011, conservatives are quick to note the profits include roughly $100 million in the form of a tax benefit document in GM’s annual report (p. 51) — and, thus, massive untaxed profits.
The outcome: GM paid a negative tax rate, around -1.5%, because of a decision allowing some of the bailout recipients, GM, AIG, and Citi, to avoid actual losses, but to still claim those losses for tax purposes.
Whatever happened to everyone — and every corporation — paying their fair share? The answer probably lies in three little letters: UAW. Obama wants to make sure the union workers get their nice extravagant pensions and benefits, and therefore expects them to vote for him this year. Therefore, GM ends up paying far less in taxes than even Warren Buffett. I’m also not hearing a lot of Democrats screaming about this low tax rate, are you?