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

[Sallow]

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

But Nobody Pays That
G.E.’s Strategies Let It Avoid Taxes Altogether
By DAVID KOCIENIEWSKI
Published: March 24, 2011
General Electric, the nation’s largest corporation, had a very good year in 2010.

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.

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.

<snip>

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.

<snip>

The head of its tax team, Mr. Samuels, met with Representative Charles B. Rangel, then chairman of the Ways and Means Committee, which would decide the fate of the tax break. As he sat with the committee’s staff members outside Mr. Rangel’s office, Mr. Samuels dropped to his knee and pretended to beg for the provision to be extended — a flourish made in jest, he said through a spokeswoman.

That day, Mr. Rangel reversed his opposition to the tax break, according to other Democrats on the committee.

<snip>

As it has evolved, the company has used, and in some cases pioneered, aggressive strategies to lower its tax bill. In the mid-1980s, President Ronald Reagan overhauled the tax system after learning that G.E. — a company for which he had once worked as a commercial pitchman — was among dozens of corporations that had used accounting gamesmanship to avoid paying any taxes.

<snip>

G.E. subsequently ramped up its lending business.

As the company expanded abroad, the portion of its profits booked in low-tax countries such as Ireland and Singapore grew far faster. From 1996 through 1998, its profits and revenue in the United States were in sync — 73 percent of the company’s total. Over the last three years, though, 46 percent of the company’s revenue was in the United States, but just 18 percent of its profits.

<snip>

By the time the measure — the American Jobs Creation Act — was signed into law by President George W. Bush in 2004, it contained more than $13 billion a year in tax breaks for corporations, many very beneficial to G.E. One provision allowed companies to defer taxes on overseas profits from leasing planes to airlines. It was so generous — and so tailored to G.E. and a handful of other companies — that staff members on the House Ways and Means Committee publicly complained that G.E. would reap “an overwhelming percentage” of the estimated $100 million in annual tax savings.

<snip>

While G.E.’s declining tax rates have bolstered profits and helped the company continue paying dividends to shareholders during the economic downturn, some tax experts question what taxpayers are getting in return. Since 2002, the company has eliminated a fifth of its work force in the United States while increasing overseas employment. In that time, G.E.’s accumulated offshore profits have risen to $92 billion from $15 billion.

“That G.E. can almost set its own tax rate shows how very much we need reform,” said Representative Lloyd Doggett, Democrat of Texas, who has proposed closing many corporate tax shelters. “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.”

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?pagewanted=4&_r=1&ref=todayspaper

Great article. Highly recommended.

 

[Sallow]

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

As it has evolved, the company has used, and in some cases pioneered, aggressive strategies to lower its tax bill. In the mid-1980s, President Ronald Reagan overhauled the tax system after learning that G.E. &#8212; a company for which he had once worked as a commercial pitchman &#8212; was among dozens of corporations that had used accounting gamesmanship to avoid paying any taxes.

GE was such a problem..that REAGAN, no less had to tighten the screws on tax policy to get what the government had coming..

 

[The T]

Marriage Made In Heaven...

B.H. Obama and Jeffey Immelt

 

[Sallow]

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?

 

[Intense]

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?

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.

 

[Intense]

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 &#8220;highest energy efficiency&#8221; 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&#8217;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%&#8211;7% revenue growth in 2011 accompanied by a 10%&#8211;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

 

[Sallow]

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?

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.

Totalitarian? Naw.

The Tax code needs to be tightened to cut this crap.

 

[Trajan]

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?

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.

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.

 

[Sallow]

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?

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.

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.

The incentives should be for two things..make better products..and employ Americans.

 

[boedicca]

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.

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.

The incentives should be for two things..make better products..and employ Americans.

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.

 

[Sallow]

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.

The incentives should be for two things..make better products..and employ Americans.

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.

That's the way it's been since the beginning. And it's in the Constitution. From the government using the Military to clear the frontiers, to gunboat diplomacy, to buying cheese from Kraft to put into rations during WWII...the government's had a hand in shaping American business.

Deny it all you want..but that's the way it is.

 

[Intense]

The incentives should be for two things..make better products..and employ Americans.

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.

That's the way it's been since the beginning. And it's in the Constitution. From the government using the Military to clear the frontiers, to gunboat diplomacy, to buying cheese from Kraft to put into rations during WWII...the government's had a hand in shaping American business.

Deny it all you want..but that's the way it is.

Soft Tyranny is a One Way Street Sallow. Hamilton fucked us from the start. We could choose to fight the Bullshit like Jefferson and Madison, or believe every lie, and support every Usurpation. You still don't get that it's the same crowd running both shows. There is no win when the deck is stacked Sallow. Just say no to more power over your life, keep empowering those Puppet Masters. Me.... I'd like to imagine where we would be, if we limited our consent to what is relevant and just. Shit, I can still remember when Washing Machines actually cleaned what you put in them.

 

[Sallow]

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.

That's the way it's been since the beginning. And it's in the Constitution. From the government using the Military to clear the frontiers, to gunboat diplomacy, to buying cheese from Kraft to put into rations during WWII...the government's had a hand in shaping American business.

Deny it all you want..but that's the way it is.

Soft Tyranny is a One Way Street Sallow. Hamilton fucked us from the start. We could choose to fight the Bullshit like Jefferson and Madison, or believe every lie, and support every Usurpation. You still don't get that it's the same crowd running both shows. There is no win when the deck is stacked Sallow. Just say no to more power over your life, keep empowering those Puppet Masters. Me.... I'd like to imagine where we would be, if we limited our consent to what is relevant and just. Shit, I can still remember when Washing Machines actually cleaned what you put in them.

The Washing Machines I use work just fine.

And as for the rest..meh..that's what happens when you decide to get civilized. There are plenty of Islands for sale though. Marlon Brando had one.

And I am not under any illusion about "who runs the show". We basically have 2 choices at this point..corporatist heavy..and corporatist lite. I vote lite with the hope that we will ween ourselves off the addiction of corporatism...and back to a more Democratic Republic. It's not going to happen over night..and I am not one who likes Radical change. But knowing there is a problem is the first step to correcting it.

 

[Quantum Windbag]

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?

It seems it also blows apart the Republicans export jobs thingy.

What do you expect, politicians follow the money, and poor people do not have as much as GE.

 

[Sallow]

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?

It seems it also blows apart the Republicans export jobs thingy.

What do you expect, politicians follow the money, and poor people do not have as much as GE.

Well of course.

And in the short term..for corporatists..it pays to keep them stupid.

 

[Dot Com]

It all goes back to lobbying/campaign finance. The current system demands a quid pro quo. Who loses? The voters.

 

[The T]

The incentives should be for two things..make better products..and employ Americans.

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.

That's the way it's been since the beginning. And it's in the Constitution. From the government using the Military to clear the frontiers, to gunboat diplomacy, to buying cheese from Kraft to put into rations during WWII...the government's had a hand in shaping American business.

Deny it all you want..but that's the way it is.

They have a HAND in it due to the fact that the GUBMINT is ZERO without PRIVATE INDUSTRY...so why does Obama wish to destroy it?

 

[The T]

Answer? Because OBAMA wants to bring this country DOWN...and On purpose...He has an AXE to grind against it for sins against the Colonialists for his Grandfather being put in jail.

The man should be Impeached for what he is doing to this Republic...you'll BOLT and applaud as your Liberty is taken away from you.

 

[The T]

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.

That's the way it's been since the beginning. And it's in the Constitution. From the government using the Military to clear the frontiers, to gunboat diplomacy, to buying cheese from Kraft to put into rations during WWII...the government's had a hand in shaping American business.

Deny it all you want..but that's the way it is.

Soft Tyranny is a One Way Street Sallow. Hamilton fucked us from the start. We could choose to fight the Bullshit like Jefferson and Madison, or believe every lie, and support every Usurpation. You still don't get that it's the same crowd running both shows. There is no win when the deck is stacked Sallow. Just say no to more power over your life, keep empowering those Puppet Masters. Me.... I'd like to imagine where we would be, if we limited our consent to what is relevant and just. Shit, I can still remember when Washing Machines actually cleaned what you put in them.

Exactly.

 

[The T]