How can it be that you pay more to the IRS than General Electric?
Some of the world's biggest, most profitable corporations enjoy a far lower tax rate than you do--that is, if they pay taxes at all. The most egregious example is General Electric. Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion. How did this happen? It's complicated.
GE in effect consists of two divisions: General Electric Capital and everything else. The everything else--maker of engines, power plants, TV shows and the like--would have paid a 22% tax rate if it was a standalone company. It's GE Capital that keeps the overall tax bill so low.
Over the last two years, GE Capital has displayed an uncanny ability to lose lots of money in the U.S. (posting a $6.5 billion loss in 2009), and make lots of money overseas (a $4.3 billion gain). Not only do the U.S. losses balance out the overseas gains, but GE can defer taxes on that overseas income indefinitely. The timing of big deductions for depreciation in GE Capital's equipment leasing business also provides a tax benefit, as will loan losses left over from the credit crunch. But it's the tax benefit of overseas operations that is the biggest reason why multinationals end up with lower tax rates than the rest of us.
Note: Can you believe that GE not only pays no taxes, they actually get credit from the US government? For a wealth of reports from media sources on the hidden manipulations of major financial corporations, click here.
Re: How can it be that you pay more to the IRS than General Electric?
Just for fun, its curios though, I thought subliminal advertisement was illegal.
https://www.leviton.com
How far is Leviton from leave it on?
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Posted in reply to the post by sharingwisdom:
Some of the world's biggest, most profitable corporations enjoy a far lower tax rate than you do--that is, if they pay taxes at all. The most egregious example is General Electric. Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion. How did this happen? It's complicated.
GE in effect consists of two divisions: General Electric Capital and everything else. The everything else--maker of engines, power plants, TV shows and the like--would have paid a 22% tax rate if it was a standalone company. It's GE Capital that keeps the overall tax bill so low.
Over the last two years, GE Capital has displayed an uncanny ability to lose lots of money in the U.S. (posting a $6.5 billion loss in 2009), and make lots of money overseas (a $4.3 billion gain). Not only do the U.S. losses balance out the overseas gains, but GE can defer taxes on that overseas income indefinitely. The timing of big deductions for depreciation in GE Capital's equipment leasing business also provides a tax benefit, as will loan losses left over from the credit crunch. But it's the tax benefit of overseas operations that is the biggest reason why multinationals end up with lower tax rates than the rest of us.
Note: Can you believe that GE not only pays no taxes, they actually get credit from the US government? For a wealth of reports from media sources on the hidden manipulations of major financial corporations, click here.
Re: How can it be that you pay more to the IRS than General Electric?
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Posted in reply to the post by Thad:
Just take your meds, like Fukketal, and you won't have to think about these things. :)
But seriously, GE is everywhere. Big, Bad and Ugly. Dirty Corporation.
Start with not buying their light bulbs, ever.
Heck, they probably are the makers of Fukketal, and the other stand-by, Whatevria.
