The Cost of the GM Bailout on the Average Taxpayer

[dellinger63]

While celebrations took place over a $7.2 billion record profit by GM and $7,000 bonus checks going to 45,000 union, rank and file workers, the American taxpayers were left holding stocks worth $27 billion less than what was paid for them. Yet no investigation, no sorry it was a horrible mistake just singing of C-E-L-E-B-R-A-T-I-O-N!

Using $35K as an average income and the latest tax table available (2011 1040EZ) we find that taxable income on $35K (after the $9,500 standard single deduction) is $3,304.

Shockingly when that $27 billion GM loss is divided by the ‘average’ taxpayer’s contribution of $3,304 the total comes to 8.18 million taxpayers! Thus for every one of the 45K workers there are 182 average taxpayers who will be forced to pay 100% of one year’s taxes to offset the $27 billion ‘investment’. They received no $7K bonus, but instead in a left front pocket to right front pocket move, got a $700 dollar payroll tax cut offset by not contributing the same $700 to their retirement account.

Wall Street Occupiers, Buehler, anyone?

[Riot]

What is the cost to the economy of 1.2 million people on unemployment insurance? Foreclosed houses? Lost local income (groceries, etc.) Lost manufacturing ancillary firms? Ford having to close, too, because all their supply manufacturers closed, unable to keep open for just one auto firm.

Duh.

[dellinger63]

Originally Posted by Riot

What is the cost to the economy of 1.2 million people on unemployment insurance? Foreclosed houses? Lost local income (groceries, etc.) Lost manufacturing ancillary firms? Ford having to close, too, because all their supply manufacturers closed, unable to keep open for just one auto firm.

Duh.

Yea because instead of cars and trucks we'd be on horseback and in wagons without GM.

The entire universe would be sucked in by a black hole if GM were to go under. Flying Unicorns with missile-guided lasers shooting from their horns will attack America if GE is required to pay taxes.

[Riot]

Originally Posted by dellinger63

Yea because instead of cars and trucks we'd be on horseback and in wagons without GM.

You have no answer to the cost to the nation of 1.2 million on unemployment insurance, etc. Just ignoring that? Got it

Keep beating the "bailout sucked" drum with your friend Mittens, and be sure to drive American. Your drum is getting pretty faint, however. BTW, ask Mittens why the government had to bail out, why private firms would not provide capital for managed bankruptcy and declined financial involvement - you know, like Bain Capital turned down involvement when it was specifically asked.

The rest of us will enjoy the success and the win for Detroit. Unemployment of 1.2 million Americans prevented, a thriving manufacturing industry saved. Yeah. That's a good thing to most.

[dellinger63]

Originally Posted by Riot

Keep beating the "bailout sucked" drum with your friend Mittens, and be sure to drive American. Your drum is getting pretty faint, however. BTW, ask Mittens why the government had to bail out, why private firms would not provide capital for managed bankruptcy and declined financial involvement - you know, like Bain Capital turned down involvement when it was specifically asked..

OK I'll take a wild guess. Maybe because they realized it was a $27 billion dollar loser? Same reason they didn't want anything to do with Solyndra?

Let me ask you something. How many employees of Lehman Bros and Art Andersen are still on unemployment?

[SOREHOOF]

Originally Posted by Riot

What is the cost to the economy of 1.2 million people on unemployment insurance? Foreclosed houses? Lost local income (groceries, etc.) Lost manufacturing ancillary firms? Ford having to close, too, because all their supply manufacturers closed, unable to keep open for just one auto firm.

Duh.

Pelosi and the Dems tell us that Unemployment Insurance is a big boost to the economy. Remember? Good thing G.E. bought lots of Chevy Volts!

[Riot]

Originally Posted by SOREHOOF

Pelosi and the Dems tell us that Unemployment Insurance is a big boost to the economy. Remember?

Pelosi and the Dems tell us that employment is an even better boost to the economy. And they put actions behind their words to prove it.

Oh - and it worked. Beautifully.

[SOREHOOF]

Originally Posted by Riot

Pelosi and the Dems tell us that employment is an even better boost to the economy. And they put actions behind their words to prove it.

Oh - and it worked. Beautifully.

By putting people out of work? I'm not sure what you mean. The Dems have been quite prolific in that respect.

[Riot]

Originally Posted by SOREHOOF

By putting people out of work? I'm not sure what you mean. The Dems have been quite prolific in that respect.

I mean the obvious subject of the thread. By keeping 1.2 million auto industry people in work.

Not quite sure what you mean by "the Dems are quite prolific in that respect" of putting people out of work, as unemployment has decreased, not increased, consistently and markedly since 2008. Do explain.