General Motors Stock Initial Public Offering Plan is irresponsible because it doesn't adequately address GM's pension problem. GM has a really serious pension problem in that its pensions are underfunded in the amount of $27.4 billion as of the end of 2009 (certainly more as of the date of this writing). This pension liability could act as a long-term economic cancer on GM sucking up revenue which should be used by GM to develop and roll out new car models and increase wages for GM workers and pay for increased benefit costs. The problem the authorities behind the GM IPO are exhibiting in the IPO plan is that they are failing to use the potential stock value of GM's stock which is enormous to erase this pension liability. GM executives have said and which seems very reasonable that the annual pretax revenue from GM will be between $11 billion and $13 billion (WSJ-11/9/10); based on historic stock valuing GM's stock value should be fifteen times these earnings so the total stock value of GM should be at least $165 billion. The present GM IPO plan is to sell $10 billion of common shares and $3 billion of preferred shares which can be converted into common shares. For this IPO, the US Treasury, the Canadian Government and GM Retirees Health Care fund are selling some of their ownership interest; after the IPO the US Treasury will be left with 43%, the Canadian Government 9.6% and the UAW retiree health fund 15% (Zacks 11/2/10) and the old GM bondholders hold a 10% equity interest in the new GM. This leaves a 22.4 % ownership interests in GM for the new IPO stockholders, now besides the aforementioned common shares and preferred shares, shortly after the IPO authorities in control of GM plan to give this $ 27 billion dollar deficit GM pension fund $2 billion dollars in stock. The idea is the right idea to give the pension fund GM stock but the amount should be at least "$5 billion in GM stock" because this stock when it reaches it's readily foreseeable market value would at least double in value reducing GM's pension by a third. This is figured by considering that the readily foreseeable market value of GM as stated is at least $165 billion, the new stock's portion of that value is 22.4% or $36.9 billion, if you take $10 billion common shares, $3 billion preferred shares (assuming their all converted) and $ 5 billion to the pension fund that equals $18 billion, $18 billion is half of $36 billion so in all likelihood in a very few years the pension funds GM stock would double in value. The overall bailout of GM was an outstanding move by the Obama Whitehouse it saved the U.S. auto industry and at least a half million middle class jobs connected with that industry because if GM failed Ford would have failed because they share suppliers and the suppliers would have failed if GM failed. There is one extremely wrongful element of this bailout, this new GM has exited bankruptcy with essentially a $45.4 billion tax credit associated with tax loss carry forwards from GM, when a business loses money in one year it is permitted by the tax code in subsequent years to use that loss to reduce their taxable income on their profits. This is an unfair development because the new GM is a different company the owners of the old GM essentially were wiped out the new GM has different owners. This essentially a tax credit based on the U.S. corporate tax rate of 35% will potentially allow GM to shield up to $135 billion dollars of income from taxes and this protection will last up to 20 years. Members of Congress should step in and do something about this travesty!