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?