After Bailout Gm Pays Almost Nothing Taxes

DETROIT — In the years following the massive government bailout that saved General Motors from collapse, the automaker found itself in hot water over its tax bill, or rather, the lack of one.

Back in 2009, as the economy tanked, GM took a $50 billion lifeline from taxpayers to avoid bankruptcy. It was a tough pill for many to swallow at the time, with jobs on the line and the auto industry reeling. By 2015, though, GM had roared back, posting solid profits and churning out popular vehicles like the Chevrolet Silverado. The company even repaid much of the bailout money, which felt like a win for everyone involved.

But then reports surfaced that GM had paid almost nothing in federal taxes for several years, despite raking in billions. Experts pointed to deductions and credits carried over from the pre-bailout era, including losses from the financial crisis that offset current earnings. For the 2014 fiscal year alone, GM reportedly owed zero taxes on over $2 billion in profits, thanks to these offsets. It left a bad taste for critics who argued that big corporations were dodging their fair share, especially one that had leaned so heavily on public funds just a few years earlier.

The story didn’t sit well with lawmakers and watchdogs, who saw it as another example of how the tax code favored the wealthy. Some members of Congress called for reforms, questioning why a company that got a government handout wasn’t giving more back. While GM defended its practices as legal and standard in the industry, the backlash highlighted ongoing frustrations with corporate America. In the end, it served as a reminder that even comebacks have their complications.