GE and Tax Cuts: A bi-partisan love story.

Discussion in 'Economy' started by Sallow, Mar 25, 2011.

  1. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    A very good and eye opening story about the pandering of politicos with big business.

    Great article. Highly recommended.
     
  2. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Gonna bump this a bit..because this part REALLY surprised me:

    GE was such a problem..that REAGAN, no less had to tighten the screws on tax policy to get what the government had coming..
     
  3. The T
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    The T George S. Patton Party Supporting Member

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    Marriage Made In Heaven...

    [​IMG]

    B.H. Obama and Jeffey Immelt
     
  4. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Well it sorta puts the "Obama is a commie" meme to bed.

    But really..no taxes? And reduction of American Employment?

    How the heck to you justify the two?
     
  5. Intense
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    Intense Senior Member

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    Obama And GE are both Totalitarian Sallow. Baby steps. ;)

    FYI Whirlpool Corp will probably come up not owing Taxes this year either, partly because of Government incentive Programs.
     
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  6. Intense
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    Intense Senior Member

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    The extension of the tax credit for energy-efficient appliances through 2012 is expected to bring considerable benefits to the appliance-makers such as Whirlpool Corp. (WHR - Analyst Report) and General Electric Co. (GE - Analyst Report). The tax credit, as declared by the Obama Administration, is projected to cost the government approximately $235 million, almost thrice the $78 million estimated cost through 2011.

    The credit facility, introduced in 2005, was aimed at providing a fixed tax concession to companies that manufacture appliances with high efficiency standards. However, in its 2011 version, a capped credit limit of $25 million has been introduced for each of the appliance manufacturing companies. However, clothes washers and refrigerators that meet the highest efficiency standards will enjoy credit limits up to $225 and $200 per appliance, respectively.

    Both Whirlpool and General Electric are pioneers in appliance making. They undertake constant and deliberate efforts for upgrading their products. Both are keen on manufacturing products that comply with the “highest energy efficiency” norms. As a result of these efforts, Whirlpool was awarded the 2011 ENERGY STAR Sustained Excellence award, the highest possible award provided by the U.S. Environmental Protection Agency (EPA).

    Simultaneously, General Electric is engaged in a bunch of projects aimed at incorporating energy efficienct products in each of its business segments. Alongside, General Electric,NRG Energy Inc. (NRG - Analyst Report) and ConocoPhillips (COP - Analyst Report) have formed a conglomeration to augment the development of next-generation energy technology.

    Whirlpool is expected to receive a tax credit of nearly $300 million in 2011, which will boost its earnings. Similarly, General Electric, whose benefit from the tax credit amounted to $200 million in 2010, is also believed to make considerable gain this year as well.

    In 2010, Whirlpool’s net income increased substantially to $9.65 per share from $5.01 per share in 2009. Revenues increased 7% to $18.4 billion. Whirlpool expects a 5%–7% revenue growth in 2011 accompanied by a 10%–15% growth in earnings, incorporating the effects of tax credit that were introduced by the U.S. government in December, 2010.
    U.S. Extends Appliance Tax Credit - Zacks.com
     
  7. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Totalitarian? Naw.

    The Tax code needs to be tightened to cut this crap.
     
    Last edited: Mar 25, 2011
  8. Trajan
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    Trajan conscientia mille testes

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    yup, the guberment got them out of the bus. of making washing machines ( top loaders) that actually cleaned your clothes, they got credits and they can 'stack' them for years to come...unreal.
     
  9. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    The incentives should be for two things..make better products..and employ Americans.
     
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    B'loney.

    The incentive to make better products is the profit motive. We don't need the government to provide "incentives" to make better products - such incentives results in crap like the Chevy Volt, which costs twice what a Prius and has lousy performance.

    Ditto on employing Americans. If the government quit handicapping American businesses with social engineering and transfer payment nonsense, we'd be creating plenty of jobs.
     
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