23 Dec General Motors Tax Evasion Explained
In 2009, General Motors filed for bankruptcy due to losing $86 billion from 2005-2009. Once under the bankruptcy protection law, they would be entitled to receive bailout funds from taxpayers amounting to $10 billion. Since General Motors also invested in infrastructure and spent $66 billion in development and research, the tax code can grant them even more credit. It is not publicly available to check when taxes were last paid, so taxpayers are left with nothing but to trust the government when they say that General Motors still has tax refunds left. This means that taxpayers will ‘still’ be paying General Motors billions from refunds for the next few years.
When General Motors closed the Lordstown plant in Ohio, leaving more than 4,000 jobless. They were ordered to pay back $28 million for breaking a 30-year agreement to keep the plant operational — they agreed. But what’s $28 million if the government gives them $10 billion from taxpayers? A few months after shutting down the plant, they announced they would be investing in Ohio again with $71 million – another $2 billion in Spring Hill, $17 million in Michigan, and $3.5 million at the Orion Assembly. Will these investments happen any time soon or after the Dec 31, 2022 deadline to return the $28 million to Ohio?
Formerly ‘The Most Profitable Entity’ In the Country
Curiously, General Motors went from being once named ‘The Most Profitable Entity’ in the country to claiming that they have not had profits for the last decade. This has left taxpayers wondering if they are deliberately underpaying their taxes or making money to not report to the government. Or worse, the government is aware and is also profiting. If so, then it is no longer a question of tax avoidance but tax evasion. GM claims that they are balancing their budget while trying to restart the economy. But at the expense of taxpayers? Is there proof, or has a room filled with lawyers and lawmakers teamed up together and planned a way for American taxpayers’ money to be funneled through General Motors and into their pockets?
At the end of the day, they are getting richer, and the taxpayers are paying for it. Even after all the layoffs and plants shutting down, they will still be eligible to receive their tax credit in full with no guarantee that more jobs will be available. As we have seen, they have not been the most reliable with keeping their promises.
There are undoubtedly many factors at play that led to these circumstances, tax policies that changed to benefit big companies such as General Motors and several others. The question is, at what cost? For Ohio, business is business. They are more than welcoming for General Motors to return, and they definitely still want their money back. So for General Motors and taxpayers, the saga continues.
If you have any questions on other kinds of support you can get when it comes to your taxes, we invite you to contact the Golden Tax Relief team.