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?
GE: 7,000 tax returns, $0 U.S. tax bill - Apr. 16, 2010
NEW YORK (CNNMoney.com) -- General Electric filed more than 7,000 income tax returns in hundreds of global jurisdictions last year, but when push came to shove, the company owed the U.S. government a whopping bill of $0.
How'd it pull off that trick? By losing lots of money.
GE had plenty of earnings last year -- just not in the United States. For tax purposes, the company's U.S. operations lost $408 million, while its international businesses netted a $10.8 billion profit.
That left GE (GE, Fortune 500) with no U.S. profit left for Uncle Sam to tax. Corporations typically face a 35% federal income tax on their earnings. Thanks to its deductions and adjustments, GE reported an actual U.S. federal income tax rate of negative 10.5%. It got to add a "tax benefit" of $1.1 billion back into its reported earnings.
"This is the first time in at least decades that GE has reported negative U.S. pretax income and it reflects the worst economy since the Great Depression," Anne Eisele, GE's director of financial communications, said via e-mail.
But what about the $10.8 billion profit overseas? GE is "indefinitely" deferring income tax payments on those profits, Eisele said.