G.E. Paid No U.S. Taxes in 2010

Weekly Standard ^ | 3/25/2011 | Daniel Halper

[xtinct]

General Electric paid no American taxes in 2010, the New York Times reports:

The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.

Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

That may be hard to fathom for the millions of American business owners and households now preparing their own returns, but low taxes are nothing new for G.E. The company has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than at most multinational companies.

[Renderofveils]

Sucking up to Obummer has it's privileges.

"The assortment of tax breaks G.E. has won in Washington has provided a significant short-term gain for the company’s executives and shareholders. While the financial crisis led G.E. to post a loss in the United States in 2009, regulatory filings show that in the last five years, G.E. has accumulated $26 billion in American profits, and received a net tax benefit from the I.R.S. of $4.1 billion."

I'd say $4.1 billion in taxpayer money taken by G.E. would go just a tad beyond privilege.

[Tenniel2]

Duh — higher prices for the company’s products. Or hadn’t you noticed?

[RightOnTheBorder]

I agree with your tax assessment, however the prism through which we should view this is whether or not the same tax options were available to GE’s competitors.

Is GE simply taking advantage of tax laws or is the Obambi administration picking winners and losers like they have with the GM tax breaks?

[KSCITYBOY]

GE is in bed with the loser

[NormsRevenge]

Beware the Corporate Gubamint Media Complex..

[No Socialist]

Nobody likes taxes or wants business taxed. This is just a sign of the commie rule. There is the priveleged class that reaps the rewards and the rest of us who suffer and pay.

[DonaldC]

I can understand if we were talking VAT or something like that, but not income taxes.

[mass55th]

"Get ready to be called a commie for suggestion GE pay taxes."

I'm a commie then. GE pays no taxes on billions of dollars of profits, but the Feds raise the taxes on my lousy pension an extra $350 a year. There's something definitely wrong with that picture.

[Responsibility2nd]

Good for GE.

Way to go.

If anyone is unaware of the fact that the US has the world’s largest capital rate, then go look it up.

Why should large corporations fork over billions of dollars to endorse Socialism in Washington DC? You and I as individuals look for ways to save our own money. Why shouldn’t GE?

[Armando Guerra]

Um, let’s all remember one thing here: businesses do not pay taxes, period. Taxes are a cost of doing business that get passed along in the cost of the business’ product or service. Whoever buys the product or service pays the tax, not the business. The business merely collects it for the government. It’s easy to get upset in a knee-jerk reaction here because we all hate GE, but in so doing, do we want to be espousing the benefits of taxation on business?

Very well said. I was going to post along the same lines and then read your post. I couldn't have said it any better so am re-posting it since it's worth repeating. I am amazed that even here on Free Republic that point is so easily lost. Corporate taxes, payroll taxes, etc. are the liberal favorites because they are hidden. I am a believer in the FairTax because you would see the taxes you are paying right on your receipt. The FairTax people also seem to forget that transparency is the biggest selling point because they get caught up in the argument of whether it would be 23% or 27% or whatever. The worry is that people will not go along with it because it is too high. The argument in return is "yes, yes it is too high." The number is set to make it revenue neutral and is what you are paying right now without realizing it. If it is too high, then lower government expenditures. It is not the FairTax fault if a revenue neutral percentage is too high. People need to see the true cost of the government.

[surfer]

Can’t wait to see how much Google was paid...

[HollyB]

Good points, and this article comes out in time for UK protests tomorrow against corporations to pay more taxes, calling the companies tax dodgers.

[AnotherUnixGeek]

Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

"A tax benefit"? So when GE got finished with it's taxes, it ended up with $3.2 billion more from the US than it started with? Impressive - most welfare leeches don't get anywhere near that kind of money.

[Responsibility2nd]

If anyone is unaware of the fact that the US has the world’s largest capital rate, then go look it up.

ugh.

Should read ...

If anyone is unaware of the fact that the US has the world’s largest CORPORATE TAX rate, then go look it up.

[discostu]

All corporate costs get passed on to the consumer. If they gotta pay a million bucks for something you can bet prices are going up. Unless their market situation dictates they absolutely have to (ie upping their prices even a little kills sales) companies don’t eat costs, whether it’s taxes or wages or utilities they all go into figuring out how much to charge.

[23 Everest]

Even took Imelt on vacation to Brazil too! I’m sure that Jeffrey didn’t pay a dime or maybe it was one red cent.

[dead]

Any tax on a corporation is paid by the consumer.

Instead of asking the government to raise taxes on corporations, you should just ask them to raise your taxes directly and cut out the middleman.

[Freedom_Is_Not_Free]

That is a target rich environment if I’ve ever seen one.

[kcvl]

Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.

While General Electric is one of the most skilled at reducing its tax burden, many other companies have become better at this as well. Although the top corporate tax rate in the United States is 35 percent, one of the highest in the world, companies have been increasingly using a maze of shelters, tax credits and subsidies to pay far less.

“He understands what it takes for America to compete in the global economy,” Mr. Obama said of Mr. Immelt, on his appointment in January

A review of company filings and Congressional records shows that one of the most striking advantages of General Electric is its ability to lobby for, win and take advantage of tax breaks.

Over the last decade, G.E. has spent tens of millions of dollars to push for changes in tax law, from more generous depreciation schedules on jet engines to “green energy” credits for its wind turbines. But the most lucrative of these measures allows G.E. to operate a vast leasing and lending business abroad with profits that face little foreign taxes and no American taxes as long as the money remains overseas.

Press Here

[Lazlo in PA]

How this piece of garbage was ever Jack Welch's hand picked successor, I will never know. Jack knew how to make a profitable business. Immelt must have had earplugs in during Jacks lessons because he is the polar opposite. Just look at how he ran GE into the ground.