Thursday, June 4, 2009

Republicans want to give taxpayers GM stock

President Obama said he doesn't want to run auto manufacturing companies. Republicans are drafting legislation to help him out with this goal. They want to give the governments GM stock to taxpayers. Reuters reported:

WASHINGTON, June 3 (Reuters) - Two senior U.S. Senate Republicans are drafting legislation to require the government to hand over to American taxpayers its controlling stake in General Motors Corp (GM.N), a party aide said on Wednesday.

To have any chance of passing the legislation, Republicans would need to win the support of Democrats who control both chambers of Congress, as well as President Barack Obama.

There was no immediate indication they could do so, but the bill would broaden debate on the president's unprecedented action to take a 60 percent ownership stake in GM.

Under the planned legislation, the Treasury Department would give stock certificates to the 154 million Americans who pay federal taxes. Taxpayers in effect financed the federal government's $60 billion investment in GM, which filed for bankruptcy protection on Monday.

"If they didn't pay taxes, they wouldn't get a share," the aide said.

No comments: