General Motors Should Pay More In Tax, Hints President Biden37
General Motors has received plenty of support from President Joe Biden. Not only is the Biden Administration a major proponent of the automaker’s pivot to electric vehicles, but it has also pledged to put the Detroit Big Three first in its race to electrify America’s roads, putting forth a proposal to limit the full federal EV tax credit to union-built, American EVs.
President Biden may count GM as a close corporate ally, but the automaker was recently the target of some mild criticism from the 79-year-old, as Automotive News reported Monday.
Speaking to media during his visit to the GM Factory Zero plant last week, Biden suggested that his administration is looking for corporations to pay their fair share in taxes in each year – and that includes America’s largest automaker.
“And guess what? They ain’t paying enough. Sorry, Mary,” he added whilst gesturing toward GM CEO Mary Barra.
GM infamously paid almost no corporate income tax between when it went bankrupt in 2009 and 2019, thanks to a common corporate tax break that allows companies to use their past losses to shield future profits from income tax. A report published by The Detroit Free Press in early 2019 indicated GM had received roughly $450 million in tax refunds in the decade since its 2009 bankruptcy filing and would likely avoid paying annual income tax for “the next several years.”
However, a recent report from the Institute on Taxation and Economic Policy that was referenced by Automotive News indicates that GM was not one of the profitable companies that paid no corporate income tax in 2020, suggesting it paid at least some kind of corporate dues for that year. Major companies that appear on the ITEP list include Nike, Salesforce.com, FedEx, Penske Automotive Group and Dish Network, among others.
Biden was present at Factory Zero to observe the start of production of the 2023 GMC Hummer EV Pickup and promote his administration’s backing of the American EV industry. The president also got behind the wheel of the Hummer EV while at the plant, testing out its launch control system for the media and later praising it as “one hell of a vehicle.” The Hummer EV is currently being produced at the Michigan facility, which will also eventually produce the GMC Hummer EV SUV, Cruise Origin robotaxi and Chevy Silverado EV.
Subscribe to GM Authority for more Mary Barra news, Joe Biden news, GM-related politics news and around-the-clock GM news coverage.
- Sweepstakes Of The Month: Win a 2023 Corvette Z06 Convertible. Details here.
No, because it will be passed on to the consumer. Also, it’s ironic how Mary Barra is a suckup to Biden, but he doesn’t give a sh!t about GM, other than his Corvettes that is.
Let’s go Brandon, more free welfare for the Libs and more taxes for everyone!
They suck up to all politicians. Nothing new.
plugs biden is a demented old fool with fools for advisers, i’m told biden can’t tie his shoes and he’s running, ruining our country?
Let’s go Brandon!
This shouldn’t be complicated. If you make more then x amount a year then this is what you pay in taxes it’s simple. It’s crazy to think all these rich people and there loop holes they get. Like they buy property for development then let it sit for however long now they take a “loss” so it’s a write off lol. Politicians and these big companies should pay there share of tax period. So weird to think these people in Washington get the best dang health insurance there is and make 6 figure salaries and they don’t do anything. How about all politicians live by the same laws they pass for everyone else how about they live on the Obama care insurance since they passed it into law. If a company makes bad choices then that’s on them they shouldn’t get a pass because of stupid decisions. But of course this will never change the rich and elite will stay the rich and elite and the poor will continue to grow poorer. Mom and pop businesses are closing left and right but I bet these guys and other huge companies will get a tax break.
The problem is much of the loop hole money goes into investments that built companies and create jobs to create more profit.
Most money the wealthy have is in investments and companies not in a suit case, mason jar or private safe.
Warren buffet may have less cash around the house than anyone here does.
It takes money to make money and the side effect is companies and jobs.
Name a loophole that they use?
The capital gains tax, to name one. Even you should know what this is.
Also it isn’t really a loophole, but net loses in one year constitute a tax credit in subsequent years. I’m no accountant but I believe this had a lot to do with the no taxes paid by GM for those years following the bankruptcy.
Of course we know what capital gains taxes are. As as an individual and most corporations are subject to this code. You are correct it is not a loophole.
So name a loophole??
Well you could of always done a quick search yourself but that’s ok. 55 of the largest companies here in the US paid no income tax over the last 3 years 18-20 all while generating hefty profits. Some loopholes are accelerated depreciation, offshoring profits, awarding stock options, maximizing tax credits as I said above you could looked all the stuff up yourself so your welcome.
I still want you to name a loophole. Maybe I can help you narrow your search. As we are referring to GM here, so look at them. So why not do a quick search for yourself.
Tax loophole – A person or company utilizing a loophole isn’t considered to be breaking the law but circumventing it in a way that was not intended by the regulators or legislators that put the law or restriction into place. The ability to circumvent the law is due to a flaw or defect in the legislation, often one that wasn’t obvious to those who originally drafted said law.
“accelerated depreciation” – tax code that allows higher depreciation in the early years of an assets life. As assets are often used more heavily in the early years of life and less productive as they age. This part of the code is also to encourage and enable new investment which helps communities and employment – hardly a loophole, this is the intent of the code.
“off shoring profits” – hardly a loophole – the company has legally set up overseas operations. I don’t like it, but hardly a loophole. However, if the U.S. corporate tax rates were as reasonable as those in some other countries, perhaps this would encourage more domestic investment.
“Awarding stock options” – again, allowed by code. This is an incentive as a way to compensate employees in lieu of salary or conventional compensation. If the stock does well, they do well financially. If the stock does not do well, (as they have forgone the salary), they lose the benefit as the options have no value. Again, not a loophole, but the intent of the code. Maybe more positions in all walks of life should be based on performance compensation, but I digress.
“Maximizing tax credits” – again allowed by code – these are incentives placed in the code to encourage or stimulate activities by individual and corporations. Companies receive tax credits for deploying renewable energy and green initiatives in their manufacturing processes. Individuals receive tax credits for energy savings in their homes, or some for child care needs or buying a non gas powered vehicle. Loophole? Maybe a loophole to some, if you are opposed to green initiatives, however, that is the intent of the code.
Tax loophole – A person or company utilizing a loophole isn’t considered to be breaking the law but circumventing it in a way that was not intended by the regulators or legislators that put the law or restriction into place.
“”How about all politicians live by the same laws they pass for everyone else how about they live on the Obama care insurance since they passed it into law.””” Now there’s a loophole!!!
I do understand the mom-and-Pop closing. They just can’t pass on cost hikes like big business. You see it with gas a rain shower in the Gulf and they raise gas. Big business will never pay fair Taxes. They have to many smart people doctoring the books to hide the money. When the Gov. passes a new law, they find the gray area to work around it.
Mom and pop have to close up because when pop dies the family can’t afford the taxes on the business. Many farms are. Lost this way.
All this to accord to buy votes and fund programs you would never agree to.
I agree with Josh, the taxes a company pays is incorporated into the price of their product. President Reagan once said that companies don’t pay taxes, their customers pay the taxes.
Screw you then Joe, and your CAFE and other green mandates. Get back in the business of providing what the market wants then (it ain’t 1.3 litre three cylinder engines). Looks like GM’s been pandering to the gov since the bankruptcy and now its not enough. Maybe go back to focusing on what the buyers want, not what the govt is trying to push.
The companies stopped fighting as the EV will be cheaper to build than trying to get an ice to meet emissions.
Development cost now are why we have so few engine and transmission choices. It has killed the manual.
Mary musta loved that. Slowly moving gm to China , anyway.
When sucking up to the feds doesn’t go in your favor.
Let’s Go Brandon.
Do the opposite of what Reagan created. Start by… if you build/ invest /employ 100% in the US, you’ll pay fewer, to no taxes, period.
Loopholes for the past 40 years for low taxes NEVER guarantees investment that will favor the US and employment. In fact, we are in the predicament today because American companies invested and now rely on foreign countries to make just about everything for us.
Low-cost foreign manufacturing + low taxes? Sorry, you can’t have your cake and eat too.
GM vehicles will just cost more, all Dems are doing is screwing over the average middle class person, as usual!
How much more exactly? Cause when those vehicles are built here mean more middle class people will be paid to do it here in America not in Mexico or Asia.
EVs need less parts so building EVs means less labor is needed and those jobs are going to be done away with in the USA not china. i want to see how the UAW handles this as the unions in germany are already protesting .
So you’re telling me one of the most proven constants over the past 100 years in the automotive industy is going to continue to occur? Manufacturers become more efficient and need less labor to complete the same task.
How is that a rational to abandon or want to abandon an entire industrial segment?
Corporations do not pay taxes their customers do, its cowardly way to get taxes without political consequences.
This is exactly it!!
Brandon is in his element! A Crowd of Liberals giving their Undivided Ignorance to a Cognitive Impaired Liar who still thinks he won the election “fair & Square”
During the election one candidate said he wants to raise taxes on corporations and the incumbent wanted to keep the taxes low for corporations. Yet the candidate that wants to raise taxes got overwhelming support from the corporations? Doesn’t make sense?
PLEASE BE CAREFUL TO LOOK AT HOW WASHINGTON DC DESTROYED GENERAL MOTORS ONCE 500,000 EMPLOYEES TODAY GM’S MARY BARRA LESS THAN 90,000. WHEN I WAS HIRED INTO CHEVROLET 10-6-69 CHEVROLET DIVISION ALONE HAD MORE THAN 90,000 GM-ERS. WASHINGTON DC CAN DESTROY ANYONE. IT STARTED WITH JIMMY CARTER FINISHED WITH BARRACK OBAMA.
GM was the second-largest employer in the world created real employment, Only Russia employed more people. When President Kennedy wanted a motor vehicle to go to the moon the president called on GM, not Honda or Toyota.
NEVER FORGET GM BUILT MORE HOUSES, POLICE, FIRE STATIONS, CITY HALLS, COLLEGES, GRADE AND HIGH SCHOOLS, MOTT CHILDREN HOSPITALS, KETTERING-SLOAN CANCER CENTER HOSPITALS, CHURCHES, SUPPORTED THE BOY SCOUTS, GIRL SCOUTS, AND UNITED FUND THAN JIMMY CARTER, BARRACK OBAMA, AND WASHINGTON DC COULD EVER COUNT. IF ROGER SMITH WAS PRESIDENT WE WOULD NOT BE $21,000,000,000,000 IN DEBT. IF SO HEADS WOULD Roll I SAW IT WITH MY OWN EYES.
WAS GM PERFECT NO BUT!! ALMOST
ASK JAY LENO ED COLE’S CHEVY COVAIR ONE of GM 10 BEST, JAY LENO KNOWS HE HAS MOTOR OIL IN HIS BODY INSTEAD OF BLOOD!!
GENERAL MOTORSSOM – General Motors Building (Cadillac Place)
I was never a BIG WHEEL AT GM, NOT EVEN A HUB CAP may be a lug nut. But! I believe I was one of the hardest workers with forecasting at GM and the Chevrolet Division. President Jimmy Carter 1978, almost cost me my forecasting job at GM; result if I could not build an adjustable forecast by model and by plant my new job would be at a loading dock at the Miller Road GM Plant, Flint Michigan. I built the first two Federal Government Forecasts for all GM Chevrolet and GMC Trucks. President Jimmy Carter’s Federal Government Fine was $5000 Per Truck Times $5000 per tenth of a mile that MY GM FORECAST missed the government mandate. My first forecast result, I missed by 5 miles the Federal Government Fine was $1,250,000.00 per sold GM truck.
As a result, after 4 more days and 4 eleven PM nights Gordy Wolter, Marty Raymen, and I built the second IBM Forecast that would work. In 1978 Microsoft WAS NOT A WORD the only Apple you could buy was at A and P and on October 6, 1969, my first GM DAY NO XEROX COPY MACHINES ONLY AB Dick model 350 and 360. In the 1980s before today’s cell phones I was one of the hand-picked crew to make sure when the GM Board of Directors, Proctor and Gamble MR JohnG. Smale and The Board came to Detroit for four days and nights there were no hick-ups and no sleep for 24 hours Friday, Saturday, Sunday, and Monday. GM would prep the Board of Directors for the New York Stock Holders meeting at the GM Proving Grounds, Milford Michigan, I felt proud that GM trusted me with these extra work assignments and the extra dollars were nice in addition to other nice favors granted to me and Gloria.
Hey GM ! How about you finish repaying the $5 Billion Dollars you got from the Obama Administration. I’ve heard you gave the government stock options … that blows. As a tax payer, and as a person whose always paid off every loan he ever made … me an a few million more like me thinks you should settle your debts first. Chrysler repaid over $2 Billions dollars in the early ’80’s AHEAD OF SCHEDULE. And one other tid bit … 100% electric vehicles aren’t the future … gas/electric hybrids are the future, and one established, and one that works. The current GM business model/management should realize that. When the public fully realizes that a 200 miles “range” is all you got, and an electric car is all you got … game over. if you live over 100 miles from the coast and no charging stations what are you going to do? In most instances you’ll find just two to four charging stations … if any at all and the future will show 10 cars jockeying for position to charge . All the auto builders say they the EV infrastructure will happen … the infrastructure that will work for a Hybrid is already there … and usually built without ANY GOVERNMENT TAX DOLLARS.
#1 the Obummer admin did not give GM the $ . The American tax payers did! #2 Why don’t Biden and Hunter pay their fair share of taxes ?
I’m sure you hold that same passion with Donald Trump and just paying taxes, no?
Or are we sweeping that under the rug?
Oh, you (think) “Obummer” was the only one involved here? Educate yourself on what happened on December 14, 2008, and T.A.R.P.
Either way, with your logic, “Obummer” didn’t do enough on 9/11 either, huh?
I thought tax increases were only if you, I mean your family make over 400k.
Corporations do not pay taxes, there customers do.
If gm has to pay a fair share they are toast!
How many ppl really do not understand business. 🤔