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

[dtotire]

By DAVID KOCIENIEWSKI
Published: March 24, 2011




General Electric, the nation’s largest corporation, had a very good year in 2010.
Drew Angerer/The New York Times

A PRESIDENT’S BUSINESS LIAISON
In January, President Obama named Jeffrey R. Immelt, General Electric’s chief executive, to head the President’s Council on Jobs and Competitiveness. “He understands what it takes for America to compete in the global economy,” Mr. Obama said.
But Nobody Pays That

A Lobbying Powerhouse

Articles in this series will examine efforts by businesses to lower their taxes and the debate over how to improve the tax system.



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 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.

more:
http://www.nytimes.com/2011/03/25/business/economy/25tax.html?hp

[bpcmxr]

1. How patriotic!

"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."

Where do the rest of We the People sign up for some of that?

[Highway61]

2. Sickening

The heads of that company along with their board room cronies should be airlifted and dropped in the middle of their mess in Japan so they can get a first hand look at what their profits are doing for the people over there!

Then they have the nerve to reep billions in profits and pay ZERO taxes while we dig deep in our pockets?

[emilyg]

3. Disgusting.