GE reports profits of $14 bill, pays $0 in US taxes

Obama is a socialist......

 

They must be rioting in the streets of Aman.

 

I understand what you're saying, but there's too much money floating here for this to happen.

 

All irrelevant. Companies sold on a stock exchange can't hide things that way. Financial statements from all perspectives you listed are required to made public. The company is worth $14B more than a year ago, including inventory, decreased liabilities, etc., not just the change in bank accounts.

True, that trick is allowed. The point is, if you can make $14B in profits vanish from the IRS like a rabbit in a hat, then that magic trick shouldn't be legal. You would have been more credible to (falsely) argue that maybe GE just delayed its tax obligation with a carryover. (They didn't.)

 

Even O'Reilly was ranting against GE not paying any tax. Then he said that he tells his accountant Swifty that when in doubt about taking some deduction, just pay it. He said he feels he should pay some tax, and also must protect his reputation. He went on and on.

I only saw 5 seconds because I never watch Fox. I was just looking for the game.

 

Since 2009, America’s most profitable companies such as ExxonMobil, General Electric, Bank of America and Citigroup all paid a grand total of $0 in federal income taxes to Uncle Sam. Tax havens alone account for up to $1 trillion in tax revenue lost every decade.

2008 article - 2/3 of corporations pay no tax
http://money.cnn.com/2008/08/12/news/economy/corporate_taxes/

 

Close the loopholes, lower the corporate tax rate. Crony capitalism leads to suboptimal outcomes and a less efficent and competitive economy.

 

I'm surprised that you, Denny, and O'Reilly all take the socialist, anti-business position. For years I've heard that this would be double taxation--that the consumer pays sales tax, and gets no deduction on his income tax for ordinary expenses, so why should the corporations pay income tax on profits. Also, this will raise prices, so consumers will pay corporate tax through those prices, so why not keep the current mode of consumers supporting the government through personal income tax.

Something like that. Then they would quickly change the subject to value added tax and flat tax, which is why I don't remember the exact rationale.

I could almost go for no corporate income tax, since passing through corporate income tax to consumers is regressive like sales tax. I'd rather have the government rely on personal tax so the rich pay more.

 

No, they made a big profit last year too, bringing down their carryover this year to $3 billion, not $38B. I speculated in Post #11 that the reason wasn't a carryover, because I knew there couldn't have been one big enough to cause zero tax on $14B. Turns out, the reason even a small $3B one can exist is that $9B of the $14B profit is untaxed due to overseas origin.

http://personalfinancebulletin.com/...but-what-about-the-14-billion-in-profit/8411/

 

Denny, GE has 14 separate divisions. Of course they play zero in income taxes. They simply have a division or two "take a bath" every quarter, keep profits overseas, use subsidies and tax shelters to increase NI without the corresponding tax penalty. The problem is the tax law and the amount of loopholes imbedded in it. Lower the corporate tax rate and eliminate the loopholes. GE will still pay a lower percentage of taxes compared to individuals and other companies, but that's why a diversified corporation and terrific accountants will get you.