Posted in The New York Times This Morning: Sent in By The GEICO Guy Living Under a Rock

As companies seek tax deals, the US government pays high price -- according to whistle-blower par excellence, The New York Times.

Tell me about it.

One can start with the 38 solar companies that are bankrupt or in serious financial trouble despite billions from the US government. [In case you missed it, this is what your $26 million bought you -- yes, a nearly blank webpage.]

But this story, sent in by the GEICO guy living under a rock, astounded to see that "in the end, the money that towns across America gave Government Motors did not matter."

I cannot make this stuff up. If it's in in the New York Times, it must be true.

Sent in by the GEICO guy. Okay, I might have made up that last part. It might have been the GEICO gal.

When the automaker released a list of factories it was closing during bankruptcy three years ago, communities that had considered themselves G.M.’s business partners were among the targets. [Wow, imagine that.]

For years, mayors and governors anxious about local jobs had agreed to G.M.’s demands for cash rewards, free buildings, worker training and lucrative tax breaks. As late as 2007, the company was telling local officials that these sorts of incentives would “further G.M.’s strong relationship” with them and be a “win/win situation,” according to town council notes from one Michigan community. [Fool me once, shame on you. Fool me twice, same on me.]

Yet at least 50 properties on the 2009 liquidation list were in towns and states that had awarded incentives, adding up to billions in taxpayer dollars, according to data compiled by The New York Times.

Cue up Connnie Francis.

That's the headline story on the front page of the $7.00/copy of today's Sunday issue of the New York Times.

Some states were desperate to throw their money away: Ohio offered GM $56 million to save its Moraine plant, and Wisconsin, fighting to save its Janesville factory, offered $153 million. GM said "no," walked away, and thanks to the bailout (mainly writing off debt and forgiving future federal taxes) is now profitable.

The photo, at the link to the New York Times story above, of the $200 million GM warehouse in Ypsilanti Township in Michigan is priceless.