“Treasury gave the firm (and its owners, including the UAW) $18 billion more in assets.” Thus a Democratic Administration gave “a massive tax benefit to one of the party’s biggest supporters.” – Wall Street Journal

 

From The Wall Street Journal

EXCERPTS:

GM had accumulated about $45 billion in such profit-shielding chits by 2008, with a book value of about $18 billion.

 

In a 2011 working paper, J. Mark Ramseyer of Harvard and Eric Rasmusen of Indiana University argue that by manipulating corporate tax rules by fiat, “Treasury gave the firm (and its owners, including the UAW) $18 billion more in assets.” Thus a Democratic Administration gave “a massive tax benefit to one of the party’s biggest supporters.” The other problem is that the move put Ford and GM’s other competitors at a disadvantage, as bailouts always do.

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