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Despite massive profits, GM pays zero federal income tax

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GM avoided paying any federal tax in 2011, despite earning $7.6 billion in profits.

In news that will anger most people opposed to government bailouts of corporations, it was reported on Friday that General Motors paid no federal income tax for 2011. GM has earned more than $13 billion in profits since 2009, when it received a massive $49.5 billion bailout. In fact, GM recorded an impressive $7.6 billion in profits last year, up nearly $3 billion from the previous year.

"We did not pay federal income tax last year," said GM spokesman Jim Cain. The Detroit News, who broke the news on Friday, also quoted Cain as claiming GM would not have to pay federal taxes “for many more years.”

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Comments

One of the only organizations I have less pity for than GM is the IRS.
I'm early retired, mostly on a fixed income with $5k medical deductible, and I had to pay $2300 this year. Something wrong with that scenario. Where's my 18 quarters of tax exclusions?

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