Merry Christmas-- if the govt takes gifts from others to give to you

Some great points made about the auto bailout-- in letters to the editor of the WSJ...

We've heard people making comparisons of the bailout of the Big Three to tax breaks received by other auto makers. But the comparison does not hold water for a variety of reasons, four of which are outlined here...

In his letter of Dec. 16, Stephen Collins tries to paint a picture that the foreign car companies receive huge financial assistance in the form of lowered taxes and other benefits that U.S. auto makers do not. A quick Internet search shows this not to be the case.

Two months ago, Ford received tax breaks from Kentucky of up to $180 million to help fund the retooling of its two Louisville plants. In July, the Ohio Tax Credit Authority approved $82.1 million for GM for its Lordstown complex near Youngstown. In addition, at the same time it gave Ford $1.7 million to start a third shift at the Lima engine plant. In August, Flint, Mich., authorized a $56 million package of tax credits and grants to keep a SUV factory open. GM also received additional tax incentives adding up to at least $96 million to build the Volt and Cruze models in Flint.

Let's face it -- states and local governments try to attract or retain large businesses in their jurisdictions, whether these companies are foreign or domestic.

Eric Matthews
Maineville, Ohio

Mr. Collins's letter on behalf of the Big Three is a valiant attempt at obfuscation. The fact that he can equate tax reductions to encourage investment by foreign companies with outright government grants of taxpayer money is revealing. Here's a little education: Reducing the government confiscation of profits is not at all similar to a free handout....

Jonathan Rothenberg
New York

While I oppose state and city subsidies here, I don't mind if taxpayers in Texas or Alabama use their 10th Amendment rights to reduce the cost of my Toyota.

I haven't read state constitutions, but bailouts certainly are not among the enumerated federal powers in the U.S. Constitution.

Carson Taylor
Portland, Ore.

For what it's worth, the only reason that the Big Three are not being offered tax incentives is because they have accumulated enormous losses and will carry those losses forward to offset future profits, and therefore will pay little or no tax to the federal government for years.

Brinton W. Frith
Princeton, N.J.