After GE’s ‘secret’ $16 billion taxpayer-funded bailout while US Government enforced the use of GE mercury-laced light bulbs on American citizens, President Obama called on GE’s chief Jeffrey Immelt to head his economic recovery advisory panel as Obama made ‘special arrangements’ for the upcoming $53 billion in taxpayer funds used to subsidize GE’s construction of a high-speed rail system.
Having spent $5 billion in the past five months on energy-related purchases, today we learn that Government Electric, the nation’s largest ‘corporation’, received even more big government favors in 2010. Oh, and never mind The Examiner’s report of GE being $660+ billion in debt. Just more pesky details.
(NYTimes) 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.
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 bespectacled, 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.
This chart shows ‘progressive’ tax rates around the world:
(Image courtesy of Moonbattery)
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.
Company officials say that these measures are necessary for G.E. to compete against global rivals and that they are acting as responsible citizens. “G.E. is committed to acting with integrity in relation to our tax obligations,” said Anne Eisele, a spokeswoman. “We are committed to complying with tax rules and paying all legally obliged taxes. At the same time, we have a responsibility to our shareholders to legally minimize our costs.”
The source of America’s problems: HERE
Bankrupt GE to spend $30 billion as Obama administration continues to fund, you guessed it, GE: HERE
Obama seeks $53 billion to fund ‘secretly’ bailed out GE for high-speed rail: HERE
General Electric going bankrupt: HERE and HERE
Bankrupt GM and Chrysler blow taxpayer loot: HERE
High-Speed rail projects receive $ billions upon high-stakes elections: HERE
US Government is bankrupt: HERE
Bankruptcy declaration for states sought — QUIETLY: HERE
Stimulus money went to foreign banks and industry: HERE and HERE
Our nation cannot survive treason from within: HERE
Mr. Immelt has good gig going with Barry.
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