US Competitiveness Chief Immelt's GE Tax Bill: $0 436
theodp writes "'He understands what it takes for America to compete in the global economy,' President Obama said of GE CEO Jeff Immelt, as he announced Immelt would chair the President's Council on Jobs and Competitiveness. On Friday, the NY Times reported that one trick Immelt employs to keep GE competitive is paying no American tax bill. In fact, GE claimed a 2010 tax benefit of $3.2B on worldwide profits of $14.2B, $5.1B of which came from US operations. According to the NYT, GE's extraordinary tax-avoidance 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. GE's giant tax department is led by a former Treasury official whose 975-member team includes former officials not just from the Treasury, but also from the IRS and virtually all the tax-writing committees in Congress. GE's return to rock-bottom tax rates marks a dramatic reversal from the mid-80's when President Reagan reacted to corporate accounting gamesmanship and supported a change that closed loopholes and required GE to pay a far higher effective rate, up to 32.5%. 'That GE can almost set its own tax rate shows how very much we need reform,' said Rep. Lloyd Doggett. 'Our tax system should encourage job creation and investment in America and end these tax incentives for exporting jobs and dodging responsibility for the cost of securing our country.'"
A Little Quick Math (Score:5, Interesting)
3.2 Billion - 320 million people in the U.S. Roughly half pay taxes (unemployed, children and so on of course don't). That works out nicely to: $100 refund for 20% of the U.S. population who pays taxes.
From one company working the system. ONE. Out of several hundred such companies that are manipulating things to their benefit.
You want a tax cut for the working people? How about making the corporations pay their fair share. There's more than enough money in their coffers to make taxes a thing of the past for the poor and middle class, as well as for small business owners and the self-employed. How does "if you make less than $50K a year, you don't have to file taxes at all" sound? You want to spur growth at the lower levels and create a solid foundation? Get rid of this burden. Doubly so on small businesses. You should get a tax *rebate* for starting a new business at this point. Instead it costs hundreds in taxes and fees. And that's if you aren't in California or some other state that really sticks it to you.
In fact, this is one thing I cannot fathom. How the RNC and big business (which are essentially one now - with the other party quickly being subverted as well) have managed to still get support from the very people that they shaft over and over again. Big business won't trickle-down. They won't save us. They won't create jobs here at home. What's good for big business is not good for the rest of us. It never has been. We need to wake up and stop letting them get away with this. Because all we're doing is strangling the very people and small businesses that we need to create the next generation of jobs and innovation.
In case you weren't paying attention, big business and small business are diametrically opposed at this point. So when they say "we're all for business" - you have to ask the greaseball politician who's mouth is flapping which "business" they are talking about. You probably won't like the answer, though.
Re:Relevance? (Score:5, Interesting)
Both parties are to blame for this mess; the Democrats just put a better spin on their corruption. You'll notice fuck-all was done about Wall Street during the two years the Democrats had control of the White House _and_ both houses of Congress.
The financial regulatory bill exists, and was in fact passed into law. Like the health care bill, however, it was fillabustered into near-ineffectiveness; most of the big reforms were bargained out of the bill in order to get a single Republican to agree to not fillabuster.
The essential problem in American politics is that most of the money comes from large donors, eg. corporations and the very wealthy. Small donations from individuals are so rare that it's actually historically relevant that Barak Obama received fully half his 2008 campaign money from small donors, making him one of the first presidents in recent memory actually bought and paid for, at least halfway, by the people. This explains why he has to date kept more than three times the number of campaign promises than he's broken [politifact.com] (though he would have been able to keep more of them if Congress didn't, for example, block funding for the closing of Guantanimo) which for an American politician is shockingly true to his word.
Re:But think of the accountants! (Score:5, Interesting)
This is very true. In the US I very often find that people give the rich a get out of jail card because they "think" they will be rich one day. I am for low taxes, live a country that has very low taxes. But even here there are rumblings that there are a limit to low taxes and that everybody has to pay taxes, including corporations.
Here is how I would solve the corporate tax issue. If you don't pay taxes in the country since you decided to move away, cool so be it. However, since you are still doing a billion dollars worth of business we will consider that profit and you will have to pay taxes on it. Oh you don't like that? Too bad, then don't sell your products here.
The moment you wave that in front of the corporation their tune will change pronto! The shareholder of corporations demand profit, and revenue. If you decide to not sell in a particular country then that means they are missing revenue. That will hurt their bottom line! And it will put them on level footing with the local corporations that can't afford to outsource or hire fancy tax lawyers.
Re:Relevance? (Score:2, Interesting)
Small donations from individuals are so rare that it's actually historically relevant that Barak Obama received fully half his 2008 campaign money from small donors, making him one of the first presidents in recent memory actually bought and paid for, at least halfway, by the people. This explains why he has to date kept more than three times the number of campaign promises than he's broken (though he would have been able to keep more of them if Congress didn't, for example, block funding for the closing of Guantanimo) which for an American politician is shockingly true to his word.
Amazing how all that isn't enough to make any sort of significant difference. Obama campaigned on hope and change, but he just ended up proving how broken American politics are.
And, concerning Guantanamo, it doesn't cost anything to just unlock the doors and shut off the lights.
Re:Relevance? (Score:3, Interesting)