1)I can't cite the section of the tax code that covers gifts to employees but at least one GM supplier puts the discount on the paycheck as taxable income (and, I suspect, they all do).
2)The employee discount (for GM vehicles anyway) is nowhere near $6000 on a $25k car. More like $2000.
3)We're discussing why someone might choose NOT to take advantage of their employer discount, and I've given you two reasons. (1) the tax consequences and (2) it's not as big of a discount as is commonly thought. (I am well aware of what the current GM employee/supplier discounts for 2006 models are, and I'm well aware that employees of at least one GM supplier get the discount added to their paycheck as taxable income).
4)Cousins of GM or GM supplier employees aren't eligible for GM employee/supplier discounts.
5)Maybe Ford's deal is sweeter, but I think likely not.
Clarification #2: The taxable amount of the discount is also automatically withheld from your gross pay for several consecutive paychecks.
At one time, the discount was extended to almost everyone related to anyone involved in the production of the car in any way.
In my last post I did state that 12 years had elapsed so I am sure that changes have been made to their program, but they are still better than what Joe Customer gets.
Are you suggesting that the total savings from sticker is only $2000? Or $2000 better than the regular buyer?