(the latter for the second time in three decades). It was a costly exercise. The federal and Ontario governments loaned $13.7 billion to the two companies in fiscal 2009/10. That was 38 percent of the $36 billion in corporate income tax revenue collected by both governments that year. It was an interesting gamble, risking four out of every ten corporate tax dollars to resuscitate two companies. Problematically, in a shrinking market for automobiles, jobs “saved” at one company are merely sacrificed at another. The bailout did not increase demand for automobiles or any of the parts or materials needed to build them.
GM’s bailout created a $4.74 billion loss for taxpayers
Some bailout cash has been returned to the public treasury.
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But taxpayers have still lost substantial amounts according to the federal Finance department. After subtracting the partial repayment made by both companies, the government’s sale of some shares they obtained via the bailout, and the present value of GM stock still