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GMAC likely to be taxed as U.S. recoups bailout funds

Posted on Thursday, January 21st, 2010 at 12:22 PM EST.(Employee News)

GMAC Financial Services is likely to be taxed under a new Obama administration proposal to impose a levy on U.S. banks to recoup bailout money—even as General Motors Co. and Chrysler Group are being exempted, the Automotive News reported.

“GMAC will likely be subject to the fee,” a Treasury Department spokeswoman said yesterday, the trade paper said. The Obama administration hasn’t decided how much each bank would pay or when it would make a final decision on which institutions to include in its proposal, the spokeswoman told the Automotive News.

If approved by Congress, the new tax would require banks to pay a total of $90 billion over 10 years, the publication said. The revenue would cover most of the expected $117 billion loss to Treasury’s Troubled Asset Relief Program, the paper said. The Bush administration initiated TARP in 2008 to bail out financial institutions, the story said. (Automotive News)
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