4.16.2011

General Electric - Imagination at Work

I'm not the kind who reads the NY Times, but I did stumble upon this article about GE.  General Electric, the largest corporation in America reported $5.1 billion in profits for 2010. Their tax bill from the IRS? Nada. In fact, the IRS is giving GE $3.2 billion in tax credits.

So impressed at their ability at  dodging tax burdens, I reckon that GE definitely lives up to their slogan, "Imagination at Work". Through aggressive lobbying and utilization of complex off-shore shelters, GE doesn't pay taxes anywhere. Their rationale, GE needs tax breaks in order to complete globally.
I'm not even American and this pissed me off! However I'm not sure who I'm angry at. The U.S Gov't for being so useless or at GE and their peers for being greedy capitalists? Some more interesting tidbits from the article:
  • 30% of GE profits are from their lending/financing division, GE Capital. Some argue that GE aren't manufacturers, but an unregulated lender who just happens to make dishwashers and MRI machines...?
  • John Samuels, is the head of GE's tax department, a former official at the U.S Treasury. Jeffrey Immelt, GE's CEO is Obama's liaison on corporate competitiveness and taxes.
  • Not paying taxes has allowed GE stay competitive & profitable, thus continuing to pay dividends to shareholders and rewards executives with grotesque compensation packages. All the while, GE have slashed 20% of their U.S workforce and shipped jobs overseas.   
So why exactly am I required to pay American taxes? I pay taxes and enjoy none of the benefits of an citizen. Americans also hate me because they think I'm here to steal their jobs. My fault, clearly!

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