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Media Hail GM ‘Record’ Profits, Forget to Mention GM Doesn’t Pay Any Taxes

Seton Motley's picture

One thing I’ve learned in the year I have spent tracking General Motors cum Government Motors (GM) - and all its Crony Socialist, green non-energy “energy”, flammable absurdities - is the fact that the car media are every bit the Leftist open-channel steno pool as are the political media.  

And with President Barack Obama running for reelection in large part on the utterly failed “success” of the $85 billion auto bailout, the car and political media have by now achieved fully melded fusion.

The examples are myriad.

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The press in parrot-unison hail Obama for having “saved” the auto industry.  

But always somehow fail to report that we have lost (at least) $23.6 billion on the (mis-ad)venture.  

Or that Obama handed an additional $68 billion of our coin - to two companies with a combined market value of around $8 billion.  How’s that for new math?

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The press in parrot-unison back Obama’s excoriation of Republican Presidential candidate Mitt Romney for suggesting GM and Chrysler file for bankruptcy.  

But always somehow fail to report that Obama...had GM and Chrysler file for bankruptcyJust as Romney recommended.  But Obama did so only after handing them an additional $68 billion of our money.  Which is not at all like what Romney suggested.

Correct me if I (and Romney) are wrong, but GM and Chrysler could have gone bankrupt - for free.  Companies and people do it all the time - with especial frequency here in the Age of Obama.

Why did Obama hand them more than eight times their combined worth - before doing just what he’s criticizing Romney for suggesting?  And why hasn’t the media asked - him, anyone - that question?

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The press in parrot-unison blithely called the Chevy Volt fire investigation closed - immediately after the Obama Administration did.  An investigation which only looked at one Volt fire - involving a vehicle that had in government testing been involved in an accident.

But the press somehow failed to subsequently remember the (at least) five additional Volt fires - even though they initially reported on them.

It’s as if they have forgotten that the Obama Administration and GM covered up the Volt fire(s) for nearly six months.

It’s as if they have forgotten the two other Volt fires that took place during government testing.

It’s as if they have forgotten the two Volt fires that led to the government’s Volt investigation in the first place - involving a vehicle that wasn’t in an accident.

And it’s as if they have forgotten about a third non-accident Volt fire.

GM’s Volt fire “solution” - and the Obama Administration’s “successfully” “concluded” Volt investigation - did nothing to address these non-accident fires.

But once the Obama Administration declared the woefully incomplete Volt case closed - so too did the media.

Oh - and another Volt number you won’t hear is 0.001%.  That’s the Volt representative percentage of the total number of cars sold in the U.S. last year (7,671 out of 6,089,422).  

More Obama-GM “success” - that the media steadfastly refuses to report.

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Which is why this latest pro-GM reportorial deluge is so unsurprising in its repetitive pathetic-ness.

The press in parrot-unison are hailing GM’s just announced “record” 2011 profits of $7.6 billion.

But they are all somehow failing to report that Obama eviscerated bankruptcy law to rip-off bond holders and payoff union cronies - and allow GM to illegally carry forward $46.4 billion in losses, which they can now illegally use as a tax write-off. 

It’s really easy to turn “record” profits - when you’re skating tax-free.  And in the Age of Obama’s Class Warfare, we have to ask - is absolutely nothing GM’s “fair share?”

Let’s do some (old) math, shall we?  Since, after all, the media won’t.

The U.S. corporate tax rate is a ridiculously high 39.2%.  (The second highest on the Planet - for another six months, at which point Japan will lower theirs and leave us with the dubious distinction.)

For the sake of this discussion, let us play it straight and apply said absurd rate bereft of deductions to GM’s 2011 “record” profits.

39.2% of $7.6 billion is $2.98 billion - in taxes NOT paid by GM.  Which means GM’s “record profit” - ain’t a record.  It ain’t even close.

All of which the press has somehow failed to report. 

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So we have experienced an Obama Administration-long press whitewash of the uber-failure that is the $85 billion auto bailout.  

And with Obama hitching his reelect wagon to this auto bailout “success” - we can expect more of the pathetic media same. 

So fasten your seat belts, Ladies and Gentlemen, it’s going to be a bumpy ride to November.  

And for you 0.001%-ers out there - you’ve got ‘em, so smoke ‘em.

Comments

#1 ⇒ Thank you Mr. Motley

The WSJ reports GM will be free of tax liability to the tune of $45 billion.

I can't think of a reason to buy from a known thief when a reputable supplier is available.

#2 this does put ows in a bit of

this does put ows in a bit of an awkwierd (sic) situation:)

Congratulations Jimmy Carter!

#3 GM is soo successful that I won't...

ever buy a GM car again..., even though the last 10 vehicles I bought were GM. I will buy a car from a non-bailed out corporation. I won't even take my Chevrolet truck to the Chevrolet dealer for servicing anymore, neighborhood mechanic is fine now.

#4 Curious to know what

Curious to know what percentage of their "profits" will go toward paying off their debt to the US public.

At this rate, it will only require them handing over 100% for the next 4 years ;)

#5 Yes, and we just know congressional repubs will be all over this

...like plastic on a Goonion Motors bumper.

Right.

-Dave

Vote for the American in November

#6 so what else is new libs

so what else is new libs lie..

#7 GM Record Profits????

This one has got to be a huge stretch to believe... show me the books!

#8 Well done, thankyou. You're forgetting Canada though

First, thanks for keeping fresh the fact that Obama overturned half a millenium of bankruptcy law to screw the bondholders and pay off the UAW. Placing the unsecured creditors ahead of the secured creditors based on nothing more than Presidential whim was, and is, a clear indication that the US is no longer a nation of laws.

I have a question though: Obama vilified hedge fund managers to get them to shut up about this $40 Billion theft. Of course, no one ever seems to mention that these are money MANAGERS and most of the bonds were held by their clients. I'd heard one of the biggest losers in this deal was a retirement fund for Indiana teachers, but I've never been able to verify it. Seems to me this is something Liberals might actually get upset about. Obama put the UAW first in line in the bankruptcy and the bondholders - many of them public sector retirees - got a pittance in GM stock in exchange for billions in bonds.

I have a question though: Didn't Canada also bail out GM and Chrysler in addition to the US bailout? I've seen elsewhere that the GM bailout cost the Canadian Government about $450,000 per GM job in Canada. The Chrysler bailout cost them about $150,000 per Chrysler job in Canada.

#10 IN Treasurer at the time now running for Senate

Thanks!

IN State Treasurer at the time was Richard Mourdock, he's now challenging Lugar in the IN Senate primary. Wonder if he'll do anything about his state's pensions being robbed if he makes it to the US Senate.

#11 GM and the Bailout

When you have a president who job experience is community organizing why would you expect him to know anything about economics? The most upsetting thing about this whole bailout is how quickly any complains were put to rest. The bailouts were clearly a violation of the law, the joke called bankruptcy was a violation of the law, the way the dealers were fired was against the law and the unions getting any portion of either company was against the law. And, of course, we have a President who has already said that if any law that he disagrees with comes up, he won't enforce it. And all this in less than 4 years. This should scare all Americans, but it won't and that is the truly scary part.

#12 Rights & Responsibilities

Along with freedom of the press comes the responsibility to tell the complete, and true, story. These days, if you don't, someone else will. Deviate from the responsible path at your own peril.

To more fully comprehend the Left, one must read “Leftism As Psychopathy” by John Ray, M.A., Ph.D. Caution, it might scare you a little bit.
http://jonjayray.tripod.com/psycho.html

#13 Mr. Motley

The press in parrot-unison back Obama’s excoriation of Republican Presidential candidate Mitt Romney for suggesting GM and Chrysler file for bankruptcy.

But always somehow fail to report that Obama...had GM and Chrysler file for bankruptcy. Just as Romney recommended. But Obama did so only after handing them an additional $68 billion of our money. Which is not at all like what Romney suggested.
 

Some on this forum have stated that GM could not have made it to or through bankruptcy, in effect closing its doors for lack of a buyer/creditor, leaving millions of people associated with the manufacturer as their source of income, in whole or part, to suffer, and only the bridge loan to GM prevented a widespread financial calamity.

Do you think that GM could have gone through bankruptcy without the billions in tax payer money and not caused alleged widespread devastation and still be in business making cars?

#14 GM bankruptcy.

The bailout was unconstitutional and shouldn't have happened.

And yes, they would have been fine going through bankruptcy.

Seton Motley is a consultant and the founder and president of Less Government.

#15 Thank You For The Response

I agree with both your points.

I do not understand how government malfeasance in passing over first in line creditors while continuing to kick the can of inevitable crushing Union benefits down the road of tomorrow create an environment where investor money flows or financial stability sowed.

If the 800 lb gorilla of the Union had been tamed via bankruptcy then investor money would flow. GM is doomed to repeat their fall.

#16 Gonna disagree with you just a little Mr. Motley.

We can't say out of hand it was unconstitutional. "Probably unconstitutional" would work out a little better. The issue was taken to court, all the way to the Supreme Court who refused to hear the case.

 The Second Circuit also addressed the Indiana Funds’ argument regarding the legality of the Treasury Department using TARP funding to finance the acquisition. The Emergency Economic Stabilization Act (“EESA”) granted the Treasury Department the authority “‘to . . . fund commitments to purchase . . . troubled assets from any financial institution . . . .” EESA defined “financial institution” to include “‘any bank, savings association, credit union, security broker or dealer, or insurance company.’” The Indiana Funds argued that the Treasury exceeded its authority under EESA by financing the Chrysler sale because Chrysler was an automaker, not a financial institution. In response, the government argued that under EESA, “any industry so ‘interrelated’ with banks that its dealings could adversely impact the national banking system is, for TARP purposes, a financial institution.” While the court did not endorse the government’s expansive interpretation of “financial institution,” it refused to uphold the appeal based on a lack of standing. For these reasons, the court denied the Indiana Funds’ appeal and affirmed the bankruptcy court’s sale order. (page 37)

PS - the one arguing for the U.S. government - Elena Kagan

I believe the bankruptcy would have been messier had it occurred earlier and without government funding. There was no private creditors willing to lend money to GM at that time. The entire credit industry was frozen in late 2008/early 2009. 

;Two of the largest American automakers, General Motors Corp. (“GM”) and Chrysler, found themselves unable to obtain financing from private lenders.10 They were only able to continue operating in late 2008 and early 2009 thanks to an infusion of billions of dollars from the U.S. government. (page 28)

Companies in chapter 11 still need an infusion of cash to operate while the bankruptcy process moves on. And there was no one willing to lend to these money bleeding operations during the ongoing financial panic at that time. 

#17 GM not paying taxes

The fact that GM pays no taxes were not reported on is further proof that Obama has the media in his pocket. This reminds me of fascist Germany when journalists towed the party line. I am so angry I could spit.

What can we do about this?

We can write these illiberal dogs and tell them that we will keep on keeping on and that we are prepared to expose their Liberal bias. That does not mean of course that they will change their ways.

What will bring about change is that we find some way to hurt them in the wallet. That approach always gets results. We should write their sponsors.

Steve Cakouros

#18 Well, Steve

Given it's the Federal Government affording an unfair advantage to GM over Ford, I would think a question of equal protection should apply.

Obama is of the opinion "Don't complain to me if you're not willing to beg."

Here's your Beggin' Strip, GM.  Now Roll over!  Play dead.

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