G.E Turns a 14.2 Billion Dollar Profit... Claims a 3.2 Billion Dollar Tax Credit!

by: Les Carpenter
Rational Nation USA
Birthplace of Independent Conservatism

I am all for business organizations turning a healthy profit. We should all be in favor of this because profitable businesses generally create jobs that employ people, thus enriching lives.

A case can be made that profitable organizations ought to pay a "fair" share of their profits (gross revenue less legitimate business and operating expenses) to help support the infrastructure and financial stability of the country they call home.

It is just a tad disturbing {even for an avowed capitalist like myself} when I read about the phenomenal profits of G.E., 14.2 billion dollars, and at the same time find out they claimed a 3.2 billion dollar tax credit!

There is something very wrong with this picture. It reeks of special privilege secured by very aggressive lobbying tactics, and a tax code that is antiquated, burdensome, and is rife with loopholes and unjustified tax breaks for corporations and the very wealthy.

Now don't misread or misinterpret what I just said. I'm not talking about redistributing wealth. I am however talking about the need to revise the tax code and regulatory maize so as to make sense both for the individual taxpayers and businesses alike. For those who may be interested in my take on a simplified and more just tax code it can be found at, An Independent Conservatives View on Limited Government, an Objective Tax Code, and Regulatory Overreach.

Back to G.E.

N.Y. Times - 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.

I presume knowing very influential people in high places doth have its advantages as well.

h/t Weasel Zippers

Cross posted to Rational Nation USA

Via: Memeorandum


  1. It doesn't hurt at all that Immelt is helping out Government Motors by buying up all that excess Chevy Volt production: Government Motors finds a buyer for all those Chevy Volts

  2. Here's another way to look at it, eliminate all corporate taxes. This may seem like an illogical approach but it would have many benefits, chief of which would be to level the playing field for all US companies and also give companies less incentive to off-shore jobs. This would in turn create much needed jobs who's resulting personal income tax revenue would more than offset the revenue lost.

    It may seem like a crazy idea but as we can see, multi-nationals like GE are already not paying taxes and actually receiving tax credits while they continue to eliminate US jobs.

  3. Chris - In a perfect proper capitalistic economy and society I agree. Completely.

    Unfortunately this ideal, as Rand observed, has never existed and we can be sure {IMHO| never will.

    Therefore, ideas such as outlined in my link to my essay n the subject ought to be entertained. It, and others like it, offer a vast improvement to the status quo.

    And all the while please continue arguing youe point with passion. And be prepared to compromise as in the effort to awing the pendulum our way!


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