• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

G.E.’s Strategies Let It Avoid Taxes Altogether

PeteEU

DP Veteran
Joined
Mar 11, 2006
Messages
38,900
Reaction score
14,235
Location
Denmark
Gender
Male
Political Leaning
Centrist
http://www.nytimes.com/2011/03/25/business/economy/25tax.html?_r=1&hp

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.

And people why the US is going down the hole with a tax system that actually PAYS its biggest corporation 3.2 billion dollars a year despite having 14.2 billion in profits.
 
It is wrong that GE is actually paid. Many conservatives in America have had a problem with this. Their CEO is a very corrupt individual. He owns MSNBC and has a very strong relationship with the Obama administration.
 
It is wrong that GE is actually paid. Many conservatives in America have had a problem with this. Their CEO is a very corrupt individual. He owns MSNBC and has a very strong relationship with the Obama administration.

This thread is not about a partisan issue. US corporations pay very little if at all taxes but this is just the worst example I have seen and the tax code has not really been changed much for decades. I read another article that stated that while the US corporate tax rate is 35%, most companies pay less than 25% and some like GE nothing. Broadcom had an effective tax rate of 1.3% last year I believe. Apple had one of 25%.

The problem is the loopholes companies have gotten put in the tax code over the decades, that allow such unpatriotic behaviour. GE and all companies that do not pay their full 35% in taxes should be nationalised and sold off in my opinion.
 
Last edited:
"This is obviously a major story - when a powerful corporation, which controls a major part of the American media, may be using its power and the airwaves to influence politics, in order to make money from government contracts," O'Reilly said. "That kind of corruption would make Watergate look small. We hope it is not true."

Will General Electric Get Paid for Supporting President Obama? - Bill O'Reilly | The O'Reilly Factor - FOXNews.com

GE owns msnbc.

and a man named george soros . . . also has clout in the main stream media business as well as wanting to buy a president...for reasons too long for me to type here..but kinda related globalization.

he almost did with kerry, but the swift-boaters stole it from him.

now msnbc, funded by GE became the media tool..bashing mccain and palin.

GE donated mega-bucks as did soros to the obama campaign.
so...
obama was getting mega money from soros as well as biased media coverage.

and so became president.
American Patriot: General Electric Owns Our President
 
This thread is not about a partisan issue. US corporations pay very little if at all taxes but this is just the worst example I have seen and the tax code has not really been changed much for decades. I read another article that stated that while the US corporate tax rate is 32%, most companies pay less than 25% and some like GE nothing. Broadcom had an effective tax rate of 1.3% last year I believe. Apple had one of 25%.

The problem is the loopholes companies have gotten put in the tax code over the decades, that allow such unpatriotic behaviour. GE and all companies that do not pay their full 32% in taxes should be nationalised and sold off in my opinion.

There is a partisan issue in regards to GE though. They are actually paid by the government and pay no taxes. The tax rate for corporations in America is far too high, and Obama believes this as well. Obama plans on reducing the tax burden on corporations and eliminating certain loopholes. The man he appointed to the President’s Council on Jobs and Competitiveness as its leader is none other than the CEO of GE who is a pro at avoiding taxes and manipulating the government. I smell corruption among the Obama administration.
 
GE isn't the only company that does this, and it's just not acceptable.
 
You can bet that the corporate interests will use this to push for the FAIR tax which is anything but fair...its all about reducing taxs for the rich
 
The problem is the loopholes companies have gotten put in the tax code over the decades, that allow such unpatriotic behaviour. GE and all companies that do not pay their full 35% in taxes should be nationalised and sold off in my opinion.

Pretty draconian. Sold off to whom? :(
 
Rupert laid bare | The Economist

Newscorp on the other side of the partisan divide. While most of their business is in the US, and they are registered there, their effective world wide tax rate was 6%.

And to put the partisan crap into the toilet, here is GEs history on tax rates.

GE, Exxon Paid No U.S. Income Taxes in 2009 - ABC News

The most egregious example is General Electric. Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.

Avoiding taxes is nothing new for General Electric. In 2008 its effective tax rate was 5.3%; in 2007 it was 15%. The marginal U.S. corporate rate is 35%.

So this was going on BEFORE Obama and under BUSH.

Also this

Exxon tries to limit the tax pain with the help of 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that (legally) shelter the cash flow from operations in the likes of Angola, Azerbaijan and Abu Dhabi. No wonder that of $15 billion in income taxes last year, Exxon paid none of it to Uncle Sam, and has tens of billions in earnings permanently reinvested overseas.

So Exxon, a US owned company pays NOTHING to the feds.

Again it is not a partisan issue.. it is a tax code issue built up over decades by BOTH sides of the the political spectrum.
 
The issue does reside with both parties. Both are very bad about cutting tax burdens on companies that support them. However as I stated previously, the corporation that gets paid by the government and pays no taxes has their CEO, appointed by Obama, leading a group that tries to limit the tax burden and erase loopholes. GE is very supportive of Obama, they basically own MSNBC as well. Republican or Democrat, things like this shouldn't fly. Right now we have a Democrat president who is allow (and fueling) this. They need to eliminate tax loopholes and lower the tax burden on businesses.
 
Pretty draconian. Sold off to whom? :(

Does not matter. Maybe the very threat will make these corporations not use tax loops to avoid paying taxes. For all I care it could be sold back to the former owners/shareholders or random people. Point is these corporations have so much power in the US (and in other countries too btw), that they can form their own tax policy to avoid taxes and yet be a huge burden on the country on many fronts. They are in principle no different than the dead beat dads or single moms living of welfare.. with one exception.. these companies earn billions.

Do you really think that the corporations would allow lawmakers to gut the tax code so that they would be forced to pay their fair share of taxes? They would complain, threaten to pull funding to said politicians and what not.

But what I do admire is Wal-Mart.. seem they pay near their full share of taxes in the US... kudos.
 
Artificial persons should not be allowed to lobby our govt
 
The revolving door issue again.
 
GE isn't the only company that does this, and it's just not acceptable.

I have often heard from folk that we should raise taxes on the wealthy to help cover the deficet. I believe that before we go rasining taxes on those already heavily taxed that we should fix all the loopholes that many of the wealthy exploit to avoid paying their share.
 
The United States, thanks to greedy politicians of all stripes, has become a Corporatocracy.

The sign I carry when I carry a sign reads: Term Limits Now. I believe our biggest problem is career politicians. They become monsters.


It'd be nice if instead of buying politicians the corporations could only rent the little fish for a few years.
 
Last edited:
The issue does reside with both parties. Both are very bad about cutting tax burdens on companies that support them. However as I stated previously, the corporation that gets paid by the government and pays no taxes has their CEO, appointed by Obama, leading a group that tries to limit the tax burden and erase loopholes. GE is very supportive of Obama, they basically own MSNBC as well. Republican or Democrat, things like this shouldn't fly. Right now we have a Democrat president who is allow (and fueling) this. They need to eliminate tax loopholes and lower the tax burden on businesses.

When Obama tried to let the Bush tax cuts expire, it was your party that fought against it like it was the end of the world....
 
When Obama tried to let the Bush tax cuts expire, it was your party that fought against it like it was the end of the world....
Were those taxes for personal income or for corporate income?
 

I just graduated college and I work in tax right now. I don't have my cpa yet... This year I have to say, I feel like I am ripping off the IRS every single day. I helped a client/business owner get a 1,000 refund, and they would have owed over 1,000 dollars... I am still working on their return, and they are looking for more deductions and receipts so the refund amount will go up more. I think I can get it over 3,000 easily... and it's a lot of mileage deductions, small receipt items, and depreciation... anything that I can depreciate, small items, furniture, etc.

It's legal, but it doesn't feel right...

I think any decent CPA knows how to do that stuff... Again, I am just a first year tax accountant so I am not that experienced. The tax code is messed up and full of "loopholes."
 
Dang! I feel sorry for the IRS getting ripped off like that. :(
 
I just graduated college and I work in tax right now. I don't have my cpa yet... This year I have to say, I feel like I am ripping off the IRS every single day. I helped a client/business owner get a 1,000 refund, and they would have owed over 1,000 dollars... I am still working on their return, and they are looking for more deductions and receipts so the refund amount will go up more. I think I can get it over 3,000 easily... and it's a lot of mileage deductions, small receipt items, and depreciation... anything that I can depreciate, small items, furniture, etc.

It's legal, but it doesn't feel right...

I think any decent CPA knows how to do that stuff... Again, I am just a first year tax accountant so I am not that experienced. The tax code is messed up and full of "loopholes."

You should think of another career. I do not say this with malise. But if you do not feel it is right for you to do everything legally in your power to help him/her reduce their tax burden then move to another part of accounting. No matter what you do in business you are paid to be their advocate. That does not mean do something illegal or somethink that seems wrong ( in your example if the deductions you are taking you think are phony you should ask for some sort of backup).

Maybe it is good you feel this way right out of school. People change careers all the time. Do something you love to do and you will be great at it. If you feel slimy at the end of the day, hard to put in the passion needed.
 
Back
Top Bottom