Chevy Volt - Tax Credit - Phoney Baloney Accounting

Government Motors is at it again.  Having previously touted that they "Paid off their loan.....IN FULL!" to the United States Government, (which was of course nothing but a big lie). GM and the folks at the Obama administration have figured out yet another way to puff up GM's numbers and make it appear that the company is in better financial shape then it really is.

The government is offering a $7,500 tax credit to people who purchase the Chevy Volt.  So that takes the $41,000 sticker price down to $33,500.  But wait just a minute......doesn't the government own GM?  Why don't they just make the sticker price $33,500?  It's obvious why they are going the tax credit route.

GM gets to puff up their sales figures and bottom line whenever they sell a Volt.  They will show the full $41,000 sales price on their income statement, and also book the additional $7,500 as proft, (above and beyond what they are making if they sold it at $33,500).  The federal government will eat the $7,500 in the form of issuing additional debt that we and our kids will all owe.  This is phoney accounting!  GM and the federal government are all one entity!

This type of accounting would make the folks at Enron envious.  If any of us tried this with a private corporation we would be thrown in jail.  Don't look for the MSM to figure out these accounting shenanigans any time soon.