On GE's Pathological Aversion To Paying Taxes

Tyler Durden's picture

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unclebigs's picture

Somehow this has got to be bullish for silver.  I know.  GE's tax bill is expected to increase and they plan to pay in silver coins?

blindfaith's picture

no they plan to barter it with crappy appliances and faulty nuclear reactors and jet engines that have fan blades that break off during flight....cleaning house so to speak, or clocks like the American type clock.

scatterbrains's picture

You can tell by the shitty materials and design in their refrigerators that they concluded a long time ago the americans are idiots.

66Sexy's picture

Their earnings are bullshit. The culture of corporate earnings fabrication, along with the captured regulatory process means a corporate dictatorship, under the Federal Reserve.

Everything is fiat, where the source of the 'decree' has changed from the US government to the chosen 'blessed', 'federal reserve bank approved', corporations.

Oh regional Indian's picture

Exactly 66. GE is anyways a bank pretending to be a manufacturing company. Just like GM is a bank pretending to be a car company. Noen of these pretnders need to pay taxes. They are more ont he queen's charter, maritime law serving than the productive enterprises they pretend to be (yes they employ many people, but that's the ploy).

We have our own version of GE here in India, called the TATA group. Same thing, taxes paid into the system is miniscule compared to profits.

Corporatism is a disease upon us.

ORI

http://aadivaahan.wordpress.com/2011/03/24/lets-start-from-the-very-beginning-a-very-good/

metastar's picture

Taxation Without Representation- People pay taxes, but gov't servers corporations (not the people).

Representation Without Taxation- Gov't serves corporations who pay no taxes.

Revolution- When people wake up and hold their gov't accountable (won't happen here as dumbed down population sleeps. This country truly deserves what it is about to get.)

10kby2k's picture

People buy the stock of GE thinking that this tax free bounty will somehow end up in their wallet. LOL.

rocker's picture

@metastar   The American people are too Fucking Stupid to rebel against the corporations and the elite who keep them debt slaves to the Central Bankers.  I have tried to explain it and they just don't get it. They do not understand the concept that a devalued dollar is a tax.  They are just too Fucking Ignorant.

Don Birnam's picture

Spot-on, ORI. GE is little more than a finance company which produces locomotives, hand mixers and dehumidifiers on the side. As finance-related entities are hard-pressed for earnings, it is frankly little wonder that GE "paid" so little in corporate income tax. <sarc>

blindfaith's picture

"

You can tell by the shitty materials and design in their refrigerators that they concluded a long time ago the americans are idiots."

 

Oh...so you have one of their crappy refrigerators too?

My Profile is 3 years old and the entire freezer door is rusted thru the paint because the geniuses at GE allows the water and ice to run inside the door guts!   I won't even go into the defrost cycle dumping water onto the floor.  Or the Profile range with two burned out burners in the same time period at $100 each.

Maybe the accounting and design departments should change (what is left of) employees.

 

GE IS JUNK!!!!!!!

aerojet's picture

Or brake linings that lock up after a thousand miles, right?

pan-the-ist's picture

Picture your gut chakra opening in a slow-motion explosion of sausage-casing small intestine.

SteveNYC's picture

But "our Corporations" needed us in 2008 and 2009.....and we were there for "our Corporations" like GE. Now, they will be there for us........yes.......they will.......

...oh fuck.....

topcallingtroll's picture

The usa tax system is abusive, complicated, and economically inefficient and distortive with some of the highest marginal rates in the world. It is the duty of all corporations and citizens to oppose this system and undermine it as much as possible. Hurray for GE!! Keep up the good work.

Dr. No's picture

I agree.  It is tax season, and why is it everyone must spend at least $50 on software simply to file?  Since the software was written by companies in collusion with the IRS, a person must seek out the help of a CPA in order to get their rightful deductions.  A few tax filings ago, I realized the tax code will never be simplified, there is a huge support industry created around filing 1040s.

MachoMan's picture

The blueprint for change/obama's campaign platform included provisions for simplifying the filing process claiming multiple billions in savings for americans.  My guess is that obama has never filed his taxes because a 1040EZ is about the end of the road as far as simplicity...  He also failed to understand how many jobs that would gut at a time when jobs are hard to come by...  and, ultimately, if squeezing efficiency out of the system through an overhaul of the complex maze of rules and regulations was a goal, then it can apply to virtually all areas, his hordes of staff and jackoff positions included.  In the end, he capitulated on the issue.

But yes, GE does not have an aversion to paying taxes per se...  rather, GE has a penchant for not having tax liabilities...  the former presumes some sort of equal dispersion amongst all taxpayers for tax liabilities ...  the latter presumes that there is no tax until the tax laws require us to pay...  big distinction.

pan-the-ist's picture

How many jobs would we loose if we simplified the tax code?

How many jobs would be lost if we standardized the plastic grocery bag?

One purpose of our government is to create jobs, it shouldn't be, but it is.  A simplified tax code is a short term net job loser, and since our government can't think ahead any later than happy hour, I'd say we're f***ed.

-Michelle-'s picture

I have to agree.  I will cheer any person or business that can figure out how to keep more of their own money.

My only qualm is that GE has a backdoor to the WH and they are able to reduce their taxes much easier than the rest of us.

G-R-U-N-T's picture

"The usa tax system is abusive, complicated, and economically inefficient and distortive with some of the highest marginal rates in the world."

I agree but the question still remains: What will be the final straw to affect change?

Harlequin001's picture

The bottom line is you have a system that doesn't require you to pay any taxes because the govt can just print, so why change it if it keeps you busy and stops you revolting...

It creates jobs...

Republican Lackey's picture

I'm sure GE is the only company doing this.

obelisks's picture

compared to say ....lets see....News Corporation ?

I bet they dont get any favours from Obama ?

tarsubil's picture

The point, douche bag, is that GE is part of the system. Their company is roundup ready while all the little guy competitors who won't produce corner cut crap while robbing the American people with subsidies get doused with the roundup of big intrusive government. Big corporation's biggest fear is competition. The tax code and regulations, the Washington cronyism, are its best friends. You do not care about any of this because you love the way the system frees you of any social obligations because you are a douche bag, douchebag.

blindfaith's picture

I think he was kidding.. you know wink wink, tongue -in-cheek, I mean look at his user name.

Zina's picture

Check the website of "US Uncut" (known as the "progressive Tea Party"):

http://www.usuncut.org/about

 

What they say:

"Enjoying record profits and taxpayer-funded bailouts as the economy slowly recovers from a financial crisis, nearly two-thirds of US corporations don't pay any income taxes, instead opting to abuse tax loopholes and offshore tax havens. According to this study from the non-partisan Government Accountability Office, 83 of the top 100 publicly traded corporations that operate in the US exploit corporate tax havens. Since 2009, America’s most profitable companies such as ExxonMobil, General Electric, Bank of America and Citigroup all paid a grand total of $0 in federal income taxes to Uncle Sam."

overmedicatedundersexed's picture

CBO news today:

The Congressional Budget Office (CBO) this week released a report that said taxing people based on how many miles they drive is a possible option for raising new revenues and that these taxes could be used to offset the costs of highway maintenance at a time when federal funds are short.

Confused's picture

Well then, that makes suburbia a failed experiment then....

 

Like getting blood from a stone. 

snowball777's picture

Stones can't run away, right? Bleed them!

As if people want to spend hours of their day in traffic commuting.

 

pan-the-ist's picture

If people start telecommuting, will they tax the distance their data travels?

Robert Neville's picture

"America’s most profitable companies such as ExxonMobil, General Electric, Bank of America and Citigroup all paid a grand total of $0 in federal income taxes to Uncle Sam"

And if they did they would just pass it on to us. The only truly transparent tax is a capitation tax. We should divide the amount the government spends by number of people in the country and everyone coughs up their share. Any other tax is just a way for the elites to hide the true cost of government. 

Bob's picture

Sure, Leroy Jones, my trash man, pays more than corporate "person" ExxonMobil, so the only viable solution is to send everybody the exact same bill . . . which ExxonMobile will surely pay. And we all live happily ever after in a land where everybody is finally paying their fair share. 

Sorry, does not compute in so many ways. 

 

Robert Neville's picture

In a true capitalist society businesses don't pay taxes. Taxes are a cost of doing business just like rent, cost of materials, or labor. Costs determine the selling price of goods. If the government passes a one dollar condom tax, the condom company will raise the price of condoms one dollar. When you engage in sex, you get screwed twice. You'll find that Leroy and you pay a lot more taxes now than you would if we had a capitation tax. You just don't see it. We would also save money by eliminating tax accountants, the IRS, and a dozen other bureaucracies. Those peole could do somthing useful instead of leaching off a corrupt system.

Zina's picture

Interestingly, your "true capitalist society" only exists on your imagination and your neoclassical textbooks, and never existed in the real world.

 

(And please, don't call me a "Keynesian". I'm neither a neoclassical nor Keynesian, nor "Austrian". Nor marxist. I'm Zinaist.)

Zina's picture

By the way, "Zinaism", created by me, is a kind of middle ground between German Ordoliberalism (and its "social market economy") and French Dirigisme.

Zinaism definitely doesn't trust in "laissez-faire", but is not Keynesian and doesn't believe in "deficit spending".

aerojet's picture

Meh, economics means "you get screwed" unless you are well-connected to the political machine. 

 

I would point out that executive compensation could be reined in quite a bit.

Harlequin001's picture

less tax and less government, perfect...

sadly less tax and less government equals fewer jobs and fewer mortgages, lower house prices, less credit and a full om economic fail.

The government IS the credit economy...

geekgrrl's picture

I don't see the logic in your example that if the government taxes condoms, the manufacturer needs to raise prices. They just make less profit since demand will go down if the price (cost+margin+tax) increases. Of course this cost is passed along to the consumer, but I would think that going forward, we're more likely to see taxes on things we might want to discourage, like excessive fuel use. Condom use, not so much.

My feeling after reading your post was to wonder what you think business is here to do? Is it to help us meet our needs and perhaps some of our desires, or is it a mechanism to convert all the natural resources of the planet to waste and then permit the organizations primarily responsible for this destruction to be given constitutional rights while paying nothing to the state for their exalted position?

I no longer see any reason for profit. The lure of profits encourages risk-taking, and I think the nuclear disaster in Japan and the BP Gulf of Mexico ecodisaster are proof enough that business people are taking excessive risks, to the detriment of us all.

GE: We Bring Good Things to Death.

Robert Neville's picture

I ponder the irony of discussing the wisdom of central economic control on a website dedicated to exposing it's failures. In answer to your question business exits to make a profit for it's owners. They tried your way in the Soviet Union, but I doubt you are old enough to remember.

geekgrrl's picture

If business exists solely "to make a profit for its owners," then this is a recipe for the conversion of all things of real value into waste, as I suggested in my original response.

I'm not sure what you mean by "they tried your way in the Soviet Union." In my post, I was thinking that the needs of the people can be achieved through non-profits, where the profit motive is not part of the equation. Of course, a non-profit is also a bureaucracy and will tend to degrade like all bureaucracies, but at least there would not be the profit motive to further distort the situation. Perhaps it is too late for that.

As to the wisdom of central control, there is none. It is dependent entirely on cheap energy, and that is about to change abruptly.

Robert Neville's picture

Do you work for free? Of course not. In fact you don't do anything unless there is something in it for you, even if it just makes you fell better. Your utopia will never exist as long as humans populate the Earth. BTW central economic control has nothing to do with cheap energy. It's when pointy headed intellectuals elites decide what is best for the other inferior beings. You have no problem using the power of government to influence the behavior of people but you don't like when corporations do the same thing. Absolute power in the hands of a few is evil regardless of who they work for. Your concept of turning resources into waste is interesting. If I cut down a tree and turn the wood into lumber and build something useful, how is that waste? It is better to let the tree grow till it rots and falls over? The Earth is in constant flux and our presence here is makes no difference in the master scheme of things. Regardless of what we do one day the sun will nova and turn this planet in to a hunk of cinder before being incorporated into the resulting black hole. The universe won't even notice.

geekgrrl's picture

"You have no problem using the power of government to influence the behavior of people but you don't like when corporations do the same thing."

Is there really a distinction between government and corporations? As far as I can tell, they are virtually identical. I see that many government officials are former employees (or future ones) of major polluting and resource extraction industries. There is a revolving door between industry and government, and these industries have been writing our laws. I don't consent to almost everything this government does, so I wouldn't characterize my position the way you did. I don't believe in this government, and I don't consent.

"If I cut down a tree and turn the wood into lumber and build something useful, how is that waste? It is better to let the tree grow till it rots and falls over?"

In most cases, the answer is yes, because it permits the forest to regenerate. You can't just keep cutting down the forests at incredible rates and extract that material and then rationalize it by saying that something "useful" was produced. John Locke's ideas are so very 18th century. We live in a resource-limited world now. Do you know anything about ecosystems, or are you just a financial person, that deals in abstracts, and then assumes everything else is abstract as well? If so, you might want to read-up on salmon escapement and what spawned-out salmon bring to the ecosystems where they exist. Sadly, I have to inform you their numbers are radically decreased over the last century.

"The Earth is in constant flux and our presence here is makes no difference in the master scheme of things. Regardless of what we do one day the sun will nova and turn this planet in to a hunk of cinder before being incorporated into the resulting black hole. The universe won't even notice.""

Our presence here makes no difference in the "master scheme of things?" Wow, do you really believe this? Do you think that humans have anything to do with the distribution of highly radioactive particles eminating from Fukushima? Maybe I misunderstand your idea of the "master scheme of things," but this is as close to crazy-talk as I can possibly imagine. You are scary.

But you are right on one point: I don't work for free. My labor is my survival. Without it I will die in this country. But I would only point out that were it not for taxes related to land ownership, namely property taxes, I could actually be free. But my county requires me to pay tribute in order to have a place to live. I think it is extortion.

AnAnonymous's picture

The most impressive remains that all these data wont make people who think that taxation is too high in the US bulge an inch.

 

falak pema's picture

It is estimated that 50% of world corporate earnings are siphoned through tax havens and transfer pricing mechanisms to then feed operating affiliates, allowing optimal tax profiling for multinationals. Simple as taking candy from a baby. So whoever says US tax systems are overcomplicated and unfair is right about small enterprises; who don't transfer price as they are national not multinational. Not the US juggernauts! They piss on tax collectors the world over. By the way taxes don't just pay salaries of state sector flunkeys, they also pay for infrastructure and education etc. before lining the pockets of MCIC...

blindfaith's picture

you have been flipped the bird again, and there is nothing you can do about it bacause we did noting when we could.

Revolution_starts_now's picture

Taxes, like laws are for the little people. Those kind of things don't apply to corporations, or the oligarchy. Eat shit people, or an iphone your choice.

Only you can prevent fascism.

Bob's picture

You can add to the liars the sock puppets who monotonously proclaim that we tragically burden American business with "the highest tax rates in the world." 

Republican Lackey's picture

You mean they're lying to us? 

blindfaith's picture

I don't think most are going to "appreciate" your form of humor....for the second time in just a few posts down this page.

People are very pissed off and more so by the day with each new revelation of how easy these criminals (from sea to shinny sea) are destroying their country like cancer or HIV destroys it's host.  And, just like Cancer and HIV they know no country, make no exceptions, allow no survivors...less their own kind.

At some point Americans will have had enough...maybe in my lifetime or yours.

But if you keep up with your brand of humor, no one will bother reading you or you will earn a record number of JUNK stars..