Yesterday the Wall Street Journal reported on the tax breaks which General Motors will be receiving from the federal government.  As the majority of Democrats make statements about ending what they call “corporate welfare”, they seem to be willing to extend unbelievable tax breaks to General Motors. 

The Wall Street Journal reports:

“GM, which plans to begin promoting its relisting on the stock exchange to investors this week, wiped out billions of dollars in debt, laid off thousands of employees and jettisoned money-losing brands during its U.S.-funded reorganization last year.

“Now it turns out, according to documents filed with federal regulators, the revamping left the car maker with another boost as it prepares to return to the stock market. It won’t have to pay $45.4 billion in taxes on future profits.

“The tax benefit stems from so-called tax-loss carry-forwards and other provisions, which allow companies to use losses in prior years and costs related to pensions and other expenses to shield profits from U.S. taxes for up to 20 years. In GM’s case, the losses stem from years prior to when GM entered bankruptcy.”

This is the kind of government favoritism that causes all Americans to lose faith in the basic honesty of their leaders.  As the article notes, this tax break is occurring just as General Motors is ready to release its Initial Public Offering (IPO) of stocks.  The stock sale needs to go well so that the Obama Administration can say that bailing out General Motors was a good thing.