A few years ago, a Wall Street Journal article reported that GM won’t have to pay $45.4 billion in taxes on future profits. “The tax benefit stems from so-called tax-loss carry-forwards and other provisions . . . In GM’s case, the losses stem from years prior to when GM entered bankruptcy.”
What controversy relates to the accounting for net operating loss carry-forwards?In your opinion, why did the government allow GM to keep this tax break, despite bailing out GM?
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