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Posts Tagged ‘VAT’

You have to hand it to Obama to never miss an opportunity to get in front of a teleprompter.  General Motors in filing bankruptcy today will officially become Government Motors.  President Obama will hold an 11:30 a.m. event to discuss it even though last night the White House released this fact sheet fact sheet (.doc file) also available at http://www.autonews.com/assets/DOC/CA61689531.DOC.  Thank God it is not during Prime Time TV.

His blathering and this document lay out the Obama Administrations details of its plan for General Motors to help it emerge from restructuring quickly.  The automaker will get $30.1 billion of additional taxpayer money to restructure a smaller-company- a New GM and in return the Treasury Department has the right to appoint the initial directors.  Another $9.5 billion will come from Canada.

“In addition, the U.S. Treasury’s ability to prevent any change in control of us could also have an adverse effect on the market price of our common stock. The U.S. Treasury may also, subject to applicable securities laws, transfer all or any of its portion of our common stock to another person or entity and, in the event of such a transfer, that person or entity could become the controlling stockholder.” http://www.thetruthaboutcars.com/editorial-between-the-lines-gm-does-not-welcome-its-new-governmental-overlords/ The Treasury could conceivably transfer the stock to China to pay off debts!   

Dealscape lists the GM Bankruptcy petition filing June 1, 2009 at 7:57 am in its entirety here http://www.thedeal.com/dealscape/2009/06/gm_files_chapter_11.php

The nature of the claims and claim debts amounts are staggering.

1.  Wilmington Trust $22.7 Billion

2.  UAW $20.5 Billion

3.  Deutche Bank  $4.4  Billion 

4.  IUE $2.6 Billion

GM’s Total Assets on a consolidated basis $82.2 Billion

GM’s Total Debt on a consolidated basis $172.8 Billion

GM was world’s largest automaker for years.  It has been a technological marvel pushing the limits of technology, and marketing the fact that it’s brands were a mark of status.  Quality suffered over the years giving the Japanese auto giant, Toyota Motor Corp., the perfect opportunity to win the trophy as the world’s largest automaker, but it too has been beaten down by a sagging economy and credit crisis.  On May 8, 2009, Toyota reported a record annual net loss of $4.4 billion. An ad for the newest Prius feature the American Icon Superman standing next to the car in front of a photo of the globe.  http://toyota.jp/  Even superman could not have saved GM. 

In total disgust, Michael Moore had this to say; ” So here we are at the deathbed of General Motors. The company’s body not yet cold, and I find myself filled with — dare I say it — joy. It is not the joy of revenge against a corporation that ruined my hometown and brought misery, divorce, alcoholism, homelessness, physical and mental debilitation, and drug addiction to the people I grew up with.”  http://www.dailykos.com/story/2009/6/1/737485/-Goodbye,-GM  Dare I say, my joy would having never have to hear or read anything you have to say again you ignoramus.  Thousands are loosing their jobs, the government is buying a car company, and Moore has the balls to have joy?  Normally I would hope he gets a lump of coal in his Christmas stocking. Even that would be too good for him, as some coal miner had to dig it up to provide fuel for his country and to help run the factory that Moore is so joyfully ecstatic over. 

GM president and CEO Fritz Henderson said, “From day one, the New GM will be well-positioned to capitalize on the award-winning vehicles we have developed and launched during the past few years, and on our investments in exciting new technologies like the Chevy Volt.”  Henderson will host a press conference right after Obama’s spiel.  Toyota is already laughing! http://www.thetruthaboutcars.com/volt-birth-watch-141-toyota-laughs-at-the-volt-indirectly/ ” There’s no way the expensive, non-“rent-paying” Volt helps GM make money – at least in the short term. So, it’s a good idea to ditch it.” wrote http://www.autobloggreen.com/2009/05/29/wsj-keeping-the-chevy-volt-alive-doesnt-make-sense-for-governm/.

If  GM was a 500 lb gorilla with “misguided marketing, poor product direction, spotty quality control, random product cycles–simply not working.”, after Ch. 11 they will be a 200 lb gorilla with “misguided marketing, poor product direction, spotty quality control, random product cycles–simply not working.”  now led by the Automotive Task force and President Obama!  

Wall Street almost killed Detroit the first time with the credit crunch writes http://www.thebigmoney.com/blogs/shifting-gears/2009/05/31/how-wall-street-almost-killed-detroit.  Can GM, the government and the tax payer kiss and make up?  Hardly, kissing is only foreplay to getting fu#$%d yet again. After 83 years on the New York Stock Exchange, GM has been de-listed. “The parlous state of GM has left us with no choice but to remove it from the Dow,” said Robert Thomson, managing editor of The Wall Street Journal and editor-in-chief for all of Dow Jones. ”A bankruptcy filing immediately disqualifies a stock regardless of a company’s history or its role as a cultural icon.”  Tough shit for stockholders, eh? 

Oh, just kiss me you fool, and hurry before the gas tax and the VAT tax take effect.

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uncle_sam_taxes

Paying taxes is Patriotic? 

Congress is considering a National Sales Tax called a Value Added Tax-VAT in some circles. Forget about repealing all the income taxes already collected, they are planning to keeping the existing income tax and add a national sales tax on top of it.  How’s that for Patriotic?

Poor people who don’t make enough to make ends meet now will be forced to rely further on social services, further enhancing the debt and reliance on government.  Socialism, pure and simple.  

A commentator from the Say Anything Blog had this to say- http://sayanythingblog.com/entry/congress_considering_a_national_sales_tax/ that “Bush took 96 months to give us the largest debt in decades.  Obama took 4 months to QUADRUPLE that.”

This is the change you can believe in.  …”Everybody who understands our long-term budget problems understands we’re going to need a new source of revenue, and a VAT is an obvious candidate,” said Leonard Burman, co-director of the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution, who testified on Capitol Hill this month about his own VAT plan. “It’s common to the rest of the world, and we don’t have it.” 

I don’t have my armpits infested by the fleas of a thousand camels like some parts of the world either, but something stinks to high hell.  I understand that our economy and the world’s economy are fragile, but a VAT on top of what we already pay? Somewhere in this VAT is an angle for government subsidized healthcare, I just know it.  We are going to have to pay for the the Swine Flu Vaccine and Vaccine Stockpiles somehow, won’t we now?  Doing away with an antiquated tax code that our own Secretary of Treasury apparently couldn’t figure out is one thing, but not repealing it and expecting tax revenue on top of that is just greed and a nasty power play on the part of our elected democratic office holders.  Do they really want to be responsible for more burdens on the poor while they sit on the throne of power under the Obama reign?

You think a gallon of milk is expensive now?  A gallon of gas locally was $2.49 in Podunk USA- in the EU it is between $5-$8 per liter.  http://goeurope.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=goeurope&cdn=travel&tm=59&gps=294_333_986_501&f=10&su=p531.50.336.ip_&tt=2&bt=1&bts=1&zu=http%3A//www.eia.doe.gov/emeu/international/prices.html%23Motor

I get that not everyone pays taxes and that not everyone qualifies but for those of us who do; for the government to even consider a VAT is just another nail in the coffin of capitalism.  I am tired of scraping up the change off the floor to pay for President Obama’s proposed socialistic programs and endless bailouts.  If I wanted to own a car company, I would have purchased the stock on Wall Street.  I didn’t need a President to do it for me.

Patriotism is not getting your money for nothing and your tricks for free. Best link on the topic is here-

PHIL KERPEN: Be Afraid, Be Very Afraid of the Obama Administration’s Scary Trial Balloon

photo props to http://longdarkteatime.com/2004_02_01_archive.html

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