Reply to Canadian Econoview

Have a look at THIS post over at Canadian Econoview, which discusses the hidden $1,400 dollar per vehicle health tax on GM vehicles.

Here’s my reply:

I have a friend who posts to my blog, and recently he raised the same issue of the $1,400 or so as a type of tax on cars.

Remember back in 2003, how GM miraculously erased its pension fund gap?

Well, they did it by issuing a $13.5 Billion set of bonds. This translates into $1 billion dollars per year in interest payments. I can’t find any numbers pertaining to the number of units sold in the US, but that fixed cost no doubt contributes to the price of a vehicle.