By Daniel Downs
Not long ago, the big news was Obama’s bailout of General Motors. In 2011, US Treasury reported that GM had paid back most of the large loan. However, the Treasury also notified the public that the federal government had become a permanent shareholder. The percent stock holdings amounted to something like 30 percent. Obviously, Uncle Obama and company wanted taxpayer-funded bailout to accumulate a long-term return on the investment.
It appears Obama is getting his way with the wealth. We could call it the back door method of taxing corporate profits.
Another interesting development recently reported by General Motors was the substantial increase of GM autos being sold to China markets. GM reported an 11.7% increase in sales in April and 9.4% for the first quarter in 2012. Total first quarter unit sales was 972,369. That’s nearly one million news vehicles cruising down Chinese pavement. If the trend continues, the federal government should see an increase of about 10-15% in revenues from GM net profits.
That is how our new schools should have always been funded. It would be a win-win for local taxpayers. Funding empire through back door taxation of corporate profits may only benefit the select few, most of whom are like Obama have a million plus portfolio of wealth.
Nevertheless, Chinese consumption is still underwriting a significant portion our government’s imperial spending spree.