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Thread: GE: 7,000 tax returns, $0 U.S. tax bill

  1. #21
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by obvious Child View Post
    Speaking of which, what Congress should do is drop the tax rate on repatriated income to like 10% for a year and have all of it go towards debt reduction. There are hundreds of billions (if not a trillions) dollars of income that is sitting outside of the US deferred. Big firms like IBM often will take out unsecured loans with a wink and a smile about what is the real collateral. Allowing firms to repatriate foreign income at a super low rate could put a rather large dent in our debt.
    You're a CPA right? I'm hoping to take the test in October.

    Hopefully then I'll be able to spout business taxation law like you!
    be humble for you are made of earth; be noble for you are made of stars

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  2. #22
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by jamesrage View Post
    Corporations typically face a 35% federal income tax on their earnings. .
    Which is probably why so much of their business is overseas to begin with.

  3. #23
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by jamesrage View Post
    It depends on what they manufacture and besides less sales means less money and therefore less taxes collected.


    What does G.E. make? You do not think they would pass those cost onto other products?




    Taxes are just another expense towards making a product just like labor, materials, equipment and so on. If they make multiple products they might change the prices to help compensate.




    G.E. won't be the one paying it, it will be the consumers.Because G.E. makes everything from lightbulbs(which people do need) to industrial automation and much more.
    OK. You can once again read the full answer, as per above, or I will give you the simple version: Companies can not simply pass a tax along. In some cases they can, in other cases they can't...Usually a tax increase is shared by manufacturer and customer in varying portion. It depends on the product.

  4. #24
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by jamesrage View Post
    It depends on what they manufacture and besides less sales means less money and therefore less taxes collected.


    What does G.E. make? You do not think they would pass those cost onto other products?




    Taxes are just another expense towards making a product just like labor, materials, equipment and so on. If they make multiple products they might change the prices to help compensate.




    G.E. won't be the one paying it, it will be the consumers.Because G.E. makes everything from lightbulbs(which people do need) to industrial automation and much more.
    OK. You can once again read the full answer, as per above, or I will give you the simple version: Companies can not simply pass a tax along. In some cases they can, in other cases they can't...Usually a tax increase is shared by manufacturer and customer in varying portion. It depends on the product.

    The concept is called "incidence of tax". It is a basic principle of economics.

  5. #25
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by jamesrage View Post
    I have mixed feelings on this. Yes everyone should pay their fair share. But at the same time you could put a 50% tax on businesses and they would pass those costs onto the consumer just like when they buy materials,equipment, pay for employees and other things used to make a product. This is why I laugh my ass off when die hard anti-smokers think big tobacco companies suffered, especially many of those tobacco companies own food companies the die hard anti-smoking people buy food products from. Why would companies not pass taxes onto the consumer?
    I think companies that do this should get a big fat fine. In GE's case it should be over a billion dollars. Or perhaps they should be audited and made to pay a fine of what their tax should have been before they got creative with their accounting.
    Last edited by tacomancer; 04-21-10 at 10:59 PM.

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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    I've always wondered how people could argue out of one side of their mouth that the price of an item is set by supply and demand, and then turn around and say out the other side of their mouth that you can't tax businesses because they just pass the cost onto the consumer? Isn't that a contradiction? Either supply and demand sets the price, or the company sets the price where he wants. If he can pass along the cost of taxes, can't he just as well pass along executive bonuses, or country club memberships? Why stop with taxes? Anything but a pay raise for their workers that make the product. The way I see it, rich men write tax laws, therefore tax laws favor the rich.
    Last edited by jacksbrat; 04-22-10 at 01:11 AM.

  7. #27
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by Kelzie View Post
    You're a CPA right? I'm hoping to take the test in October.

    Hopefully then I'll be able to spout business taxation law like you!
    Not quite. I need the time. I passed the exam though. That test sucks. Royally. Makes things like the SAT look like child's play.

    I just really wanted to get FAR out of the way. I really, really did not want to be there when the IFRS FAR version comes around. I understand IFRS to a fairly decent level, but that test I suspect is going to blind side people left and right.
    Last edited by obvious Child; 04-22-10 at 01:40 AM.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

  8. #28
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by Taylor View Post
    Which is probably why so much of their business is overseas to begin with.
    Not really. Corporations generally don't pay income tax. Well, technically they pay it, but they are really just passing the costs on to consumers. Therefore, the consumer (and intermediaries) is paying an additional 35% sales tax.

    Businesses offshore because of labor and environmental reasons. Taxes is not really the issue.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

  9. #29
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by obvious Child View Post
    Not quite. I need the time. I passed the exam though. That test sucks. Royally. Makes things like the SAT look like child's play.

    I just really wanted to get FAR out of the way. I really, really did not want to be there when the IFRS FAR version comes around. I understand IFRS to a fairly decent level, but that test I suspect is going to blind side people left and right.
    What is this "FAR?" I haven't heard of it.

    I enjoyed the SAT. Not as much as I enjoyed the GMAT, but I like testing. I have this ego problem...
    be humble for you are made of earth; be noble for you are made of stars

    Serbian proverb

  10. #30
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    Re: GE: 7,000 tax returns, $0 U.S. tax bill

    Quote Originally Posted by Kelzie View Post

    I enjoyed the SAT. Not as much as I enjoyed the GMAT, but I like testing. I have this ego problem...
    Oh GAWD you are weird. You must be a SPACE ALIEN!!!

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