NEW YORK (CNNMoney.com) -- General Electric filed more than 7,000 income tax returns in hundreds of global jurisdictions last year, but when push came to shove, the company owed the U.S. government a whopping bill of $0.
Oh to be GE. Hey folks,
Welcome to the Big Sunday Edition of the OPNTalk Blog. So how did they do this? Well according to CNN Money - GE: 7,000 tax returns, $0 U.S. tax bill By Annalyn Censky, staff reporter April 16, 2010: 11:52 AM ET
GE had plenty of earnings last year -- just not in the United States. For tax purposes, the company's U.S. operations lost $408 million, while its international businesses netted a $10.8 billion profit.
That left GE (GE, Fortune 500) with no U.S. profit left for Uncle Sam to tax. Corporations typically face a 35% federal income tax on their earnings. Thanks to its deductions and adjustments, GE reported an actual U.S. federal income tax rate of negative 10.5%. It got to add a "tax benefit" of $1.1 billion back into its reported earnings.
They are not alone. This is a pretty common practice, and it is completely legal. Yet, YOU sure will pay your taxes.
Coming right up?
Oh to be GE. Hey folks,
Welcome to the Big Sunday Edition of the OPNTalk Blog. So how did they do this? Well according to CNN Money - GE: 7,000 tax returns, $0 U.S. tax bill By Annalyn Censky, staff reporter April 16, 2010: 11:52 AM ETGE had plenty of earnings last year -- just not in the United States. For tax purposes, the company's U.S. operations lost $408 million, while its international businesses netted a $10.8 billion profit.
That left GE (GE, Fortune 500) with no U.S. profit left for Uncle Sam to tax. Corporations typically face a 35% federal income tax on their earnings. Thanks to its deductions and adjustments, GE reported an actual U.S. federal income tax rate of negative 10.5%. It got to add a "tax benefit" of $1.1 billion back into its reported earnings.
They are not alone. This is a pretty common practice, and it is completely legal. Yet, YOU sure will pay your taxes.
Coming right up?
All that in just a second. Told you Cap and Tax was next. According to Reuters - US Senate climate bill to be unveiled April 26* Backers hope for Senate vote in June or July
* Measure could affect states' climate control activities (Adds reaction from American Petroleum Institute)
Oh it will effect States. It will once again, take authority away from states and gives it to the Federal Government. According to this piece..
On Wednesday, a Senate source told Reuters the legislation would prohibit the Environmental Protection Agency from regulating carbon dioxide emissions. It would also end state and regional carbon-trading programs, such as the one several Northeastern states participate in, to be replaced by a national carbon reduction policy. [N14150360]
It will increase Gas prices also. 27 cents a gallon. That's on top of the already HIGH prices for other reasons. It will be a final nail in our Economic Coffin.
Going to fill my cup. Today is one of my favorites, Folgers Gourmet Selections, Chocolate Truffle. You can find it at your local Grocer, or at their Website, www.folgers.com. Go get your morning Joe, and we shall meet right back here in just a minute.
Oh and do not forget, you can follow us on Twitter - peteropntalk, Facebook - Peter Carlock, Tom Sullivan Radio Listener's Club, and as always, the Email is opntalk@gmail.com. Be right back
Peter
Sources:
CNN Money - GE: 7,000 tax returns, $0 U.S. tax bill
Reuters - US Senate climate bill to be unveiled April 26
4 comments:
ahhhh... Still at it. Just telling some of the story. Here's more of the story. 2 out of every 3 U.S. corporations paid NO federal income taxes between the years 1998 and 2005. ExxonMobile uses the Bahamas, Burmuda and the Cayman Islands to shelter their tax liability. In 2008 E/M paid $15 Billion in income taxes world wide ($45.2 billion profit). Guess how much they paid to Uncle Sam. ZERO. (maybe if they paid just some taxes we - the consumer- could get a break at the pump). Just wanted to get more of the story out there. And just to set the record straight, GE can go suck it, too. They ruined the Hudson and are STILL not owning up to their actions. What is this U.S. worship of corporations? They don't really help. We can get by without them. Really. Can we see you do a story about Exxon and taxes, too? Let's get the word out.
Would also love to encourage you to buy Fair Trade coffee. Proctor and Gamble (Folgers) has historically screwed the already poor bean farmers in the poorest countries of the world. Hey, I guess you don't become one of the fattest corporations in the world by treating your workers with respect and dignity.
Hey Pete,
Corporation pay NO Taxes. YOU do. Every time to deal with them. Be it manufacturing, transporting or supplying.
You go into a store that sells item x for $10.00. You buy it because it is so cheap, and you love X. It costs $1.00 to make. cumulative taxes through this process, $4.00. Profit, between manufacturer, and Stores, $5.00
Taxes go up every step of the way? Now that final product cost YOU $20.00. The corporations pay nothing. YOU do.
And what's with this HATE for corporations? I have never been employed by a poor person. Corporations bring Jobs. Produce things we need. BENIFIT the communities they exist in. Bring tax revenue to both the Local and Federal Government to pay for all the freebies that some love some much.
Oh, I'll look into the Exxon thing. You know in 2006 Exxon did pay $27.9 billion in taxes (41.4% tax rate), and just something to think about, 2008 CNN - May 1, 2008 ... Following CNN's analysis, Exxon paid $1185 in income taxes every second this quarter. Imagine a tax bill like that Pete? How much tax has the "Green" Industry paid?
Peter
Oh, I'll also look into the Coffee thing. THAT peeked my attention. I do drink MANY different Coffees from Many different Sources. You got my attention with the Folgers thing.
Peter
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