Despite massive profits, GM pays zero federal income tax
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.”