Slashdot Mirror
US Competitiveness Chief Immelt's GE Tax Bill: $0
theodp writes "'He understands what it takes for America to compete in the global economy,' President Obama said of GE CEO Jeff Immelt, as he announced Immelt would chair the President's Council on Jobs and Competitiveness. On Friday, the NY Times reported that one trick Immelt employs to keep GE competitive is paying no American tax bill. In fact, GE claimed a 2010 tax benefit of $3.2B on worldwide profits of $14.2B, $5.1B of which came from US operations. According to the NYT, GE's extraordinary tax-avoidance 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. GE's giant tax department is led by a former Treasury official whose 975-member team includes former officials not just from the Treasury, but also from the IRS and virtually all the tax-writing committees in Congress. GE's return to rock-bottom tax rates marks a dramatic reversal from the mid-80's when President Reagan reacted to corporate accounting gamesmanship and supported a change that closed loopholes and required GE to pay a far higher effective rate, up to 32.5%. 'That GE can almost set its own tax rate shows how very much we need reform,' said Rep. Lloyd Doggett. '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.gereports.com/setting-the-record-straight-ge-and-taxes/
- GE paid almost $2.7 billion in cash taxes in 2010 on a consolidated basis (almost 19% of pretax income from continuing operations).
No-one outside of America (and, I suspect, a whole lot of people inside America) would consider the Democrats to be Left-wing. They're Right-wing, just not so crazy Right-wing as the alternatives.
They paid $0 last year. http://abcnews.go.com/Business/Tax/ge-exxon-paid-us-income-taxes-09/story?id=10300167
Sure, they have liberal commentators on in the evening... but they also have Chris Matthews...
Chris Matthews? He ran for the House in a Democratic Primary, he was a speechwriter for Carter, and he was a top aide to Tip O'Neill. He said in 2008 that he has "made a commitment to covering politics in a liberal way, starting in 1987." He "felt a thrill going up his leg" when Obama speaks. He also said, "I want to do everything I can to make this thing work, this new presidency [the Obama administration] work." He said this as a journalist theoretically covering the administration from the outside. This guy is as liberal as they come. Don't let his hate-on for the Clintons obscure that.
Not gonna comment on the rest, but low teacher salaries are just the public education system trying to spin their atrocious performance the best way they can. Currently the U.S. spends about $10,000 per student on public education, which is among the highest in the world and up nearly 4-fold since the 1960s in inflation-adjusted dollars. So a teacher in charge of a class of 25 students actually represents an expenditure of a quarter million dollars every year. The problem is most of that money is being squandered on administration, rather than in the classroom. It's incredibly difficult to fix this problem when any attempt to address it is immediately characterized as an attack on underpaid teachers, whose salaries represent less than 20% of expenditure.