Now that is an excellent question. I can tell you the answer, but it’s still an excellent question.
(From Fox Business)
Ask yourself, how come the candidates aren’t debating how the GM bailout is a textbook case of crony capitalism? A bailout in which taxpayers paid millions of dollars in “advisory” fees to companies like Evercore Partners to arrange, and given that GM is paying more in annual taxes in China than it is paying in the U.S.?
All in, GM got a $51 billion bailout, for which it refused to pay back some $10.5 billion to U.S. taxpayers, since that $10.5 billion hit arose from the Treasury Dept.’s losses on the automaker’s stock when it sold the shares in late 2013 (the bailout took the form of a loan and a 61% equity stake in GM by the Treasury Dept.)…
…The reason for GM’s low tax bill: A big fat tax break in the bailout. This sweetheart deal from the Obama Administration let GM deduct $45.4 billion in costs going forward, against current year taxes, even though it discharged those sums in bankruptcy.