GE and Crony Capitalism - We should all be against this

[volinbham]

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?_r=2&hp

The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.
Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

Good thing Obama tapped Immelt for an advisor...

 

[IPorange]

Unreal.

 

[droski]

not only that they got tens of billions of tarp loans and guarantees, but didn't have to pay the steep interest and warrents the bands had to. i assume this comes from carryforward losses. seems absurd they can use them considering what the taxpayers has done for them.

 

[VolsNSkinsFan]

they increased the dividend this year and are currently buying back shares

 

[volinbham]

Simplify the tax code and lower the tax rate.

 

[sjt18]

Fair Tax... and much if not most of corporate welfare goes away.

 

[utgibbs]

Y'all are beginning to sound like me.

It was inevitable.

 

[tigervol9802]

Fair Tax... and much if not most of corporate welfare goes away.

It will never go away under the current set-up in DC.

Simplify the tax code and within 10 years we will be close to exactly right back to where we are now.

 

[NEO]

Y'all are beginning to sound like me.

It was inevitable.

You don't get it do you?

This is the opposite of what is suppose to happen in a 100% free market.

This is what happens when the Federal government gets in bed with business.

 

[gsvol]

Bu, bu, bu, but I thought Barry was anti-corporation???

Careful bham, you'll cause some heads to explode and we'll have brain matter (if you can call it that) splattered all over the message board.

Barry isn't above taking a sweetheart deal himself.

Obama Invested in Company That Got Sweet Deal From FCC | National Legal and Policy Center

Last night, NLPC Chairman Ken Boehm appeared on Fox Business Network to describe political favoritism by the Federal Communications Commission (FCC) that benefited Harbinger Capital, a hedge fund headed by billionaire Phil Falcone.

NLPC first accused the FCC of favoritism in a February 2 request for an investigation by the House Committee on Oversight and Government Reform, chaired by Rep. Darrell Issa (R-CA). We pointed to large donations to Democratic Senatorial Campaign Committee, made the day after Falcone visited the White House, that appeared to be related to the FCC's fast track approval of Harbinger's acquisition of a company called SkyTerra, which has been renamed LightSquared.

More significantly, the FCC also allowed LightSquared to exploit a loophole that allows it to deploy a national 4G wireless network to handle cell phone calls and data. LightSquared is getting valuable wireless spectrum on the cheap, while its competitors like AT&T and Verizon are spending billions to build out their networks.

Not included in our February 2 letter to Issa is the fact that Barack Obama invested $90,000 in the obscure, thinly-traded SkyTerra in 2005. He was put into the investment by a UBS broker at the behest of a major donor to Obama's campaigns named George W. Haywood, who was also a major investor in SkyTerra.

In depth interview follows.

 

[MG1968]

meanwhile, Exxon/Mobil pays over 30 billion in one year in taxes and they're regarded as the spawn of Satan.

 

[Rasputin_Vol]

Not included in our February 2 letter to Issa is the fact that Barack Obama invested $90,000 in the obscure, thinly-traded SkyTerra in 2005. He was put into the investment by a UBS broker at the behest of a major donor to Obama's campaigns named George W. Haywood, who was also a major investor in SkyTerra.

UBS??? :unsure:

Aren't they the ones that hide assets and were asked to open up their books by the IRS to find tax evaders? Why is Obama associating with employees of a company that is helping tax cheats? Unless he was trying to hide something???

 

[utgibbs]

Simplify the tax code and lower the tax rate.

Did you turn into me suddenly?

Simple, transparent, progressive. There is no doubt if everyone paid their fair share, the vast majority of the population would be paying a lot less.

There is only one reason to have a convoluted tax scheme - so those with the means can avoid them.

 

[n_huffhines]

Simplify the tax code and lower the tax rate.

There you go. My sister is a controller for the entire western hemispheric operations at GE. She's kind of a big deal and must be hella good if she can pull something like this off (just kidding, she doesn't deal with transfer pricing).

Transfer pricing can only hurt the US if other countries have better tax rates. If we get lower corporate tax rates then we'll actually increase total tax revenue (see Laffer curve).

 

[tigervol9802]

There you go. My sister is a controller for the entire western hemispheric operations at GE. She's kind of a big deal and must be hella good if she can pull something like this off (just kidding, she doesn't deal with transfer pricing).

Transfer pricing can only hurt the US if other countries have better tax rates. If we get lower corporate tax rates then we'll actually increase total tax revenue (see Laffer curve).

Lucky woman. I've worked on on transfer pricing study. They absolutely suck. That said, you can make a lot of $$$$$ if you are good at them.

 

[volinbham]

Did you turn into me suddenly?

Simple, transparent, progressive. There is no doubt if everyone paid their fair share, the vast majority of the population would be paying a lot less.

There is only one reason to have a convoluted tax scheme - so those with the means can avoid them.

I've been a long time advocate of simplification and lowering.

I bet we have different views on lowering and on level of progressiveness.

Finally, WRT corporate taxes (topic of this thread) I don't see any need or use for a progressive structure.

 

[milohimself]

IMO simplified tax codes are something most should be able to agree on. No surprise here.

 

[n_huffhines]

GE's response. According to them, NY Times has bent the truth. Wouldn't be the first time.

GE and Taxes | GE Reports

 

[utgibbs]

You don't get it do you?

This is the opposite of what is suppose to happen in a 100% free market.

Letters to Santa Claus.

This is what happens when the Federal government gets in bed with business.

They have a name for that... fascism.

There is no "free market" (another so-called "Letter to Santa Claus") and this is what has happened since the advent of state capitalism (again, utopian to believe there is a magic nirvana-land where the free market guides us infallibly with its "invisible hand.")

 

[utgibbs]

I've been a long time advocate of simplification and lowering.

I bet we have different views on lowering and on level of progressiveness.

Finally, WRT corporate taxes (topic of this thread) I don't see any need or use for a progressive structure.

Surely though, if you believe a corporation is a legal person (as the US does), it should simply be taxed at the individual rate? There is absolutely no need for separate tax laws...

Progressivity is elementary fairness. There is no other way around it. If you do not want progressivity, you do not want fairness. If you can justify the unfairness, then by all means.

 

[MG1968]

Surely though, if you believe a corporation is a legal person (as the US does), it should simply be taxed at the individual rate? There is absolutely no need for separate tax laws...

Progressivity is elementary fairness. There is no other way around it. If you do not want progressivity, you do not want fairness. If you can justify the unfairness, then by all means.

fairness would be a uniform tax rate with no exceptions, which is what the US Constitution calls for. Progressive taxation is a Marxist ideal and is inherently unfair because it punishes success although only to a certain point. If an individual's tax rate increased by 1% for every earned million after the first 5, a lot of Hollywood types would suddenly realize how unfair progressive taxation truly is and the democrats would lose a reliable base of advocates.

 

[tigervol9802]

GE's response. According to them, NY Times has bent the truth. Wouldn't be the first time.

GE and Taxes | GE Reports

I was wondering how long it would take for that reply to get out.

 

[tigervol9802]

Surely though, if you believe a corporation is a legal person (as the US does), it should simply be taxed at the individual rate? There is absolutely no need for separate tax laws...
Progressivity is elementary fairness. There is no other way around it. If you do not want progressivity, you do not want fairness. If you can justify the unfairness, then by all means.

lol:lol:lol:

 

[Rasputin_Vol]

GE's response. According to them, NY Times has bent the truth. Wouldn't be the first time.

GE and Taxes | GE Reports

I have to give GE some credit, they didn't just stand there and take it. I wish more companies would do this.

 

[gsvol]

UBS??? :unsure:

Aren't they the ones that hide assets and were asked to open up their books by the IRS to find tax evaders? Why is Obama associating with employees of a company that is helping tax cheats? Unless he was trying to hide something???

Hide something???

He issued an executive order his first day in office that sealed just about every record about his past.

One question is this, given that both Barry and Michelle can't practice law in Illinois anymore, were their licenses revoked?? If so, why?

Another item is that he has been dragging his heels about releasing white house logs that give the names of visitors.

About as transparent as a slab of granite.

Surely though, if you believe a corporation is a legal person (as the US does), it should simply be taxed at the individual rate? There is absolutely no need for separate tax laws...

Progressivity is elementary fairness. There is no other way around it. If you do not want progressivity, you do not want fairness. If you can justify the unfairness, then by all means.

The idea that a corporation has the rights of an individual citizen comes from an erroneous 1890s era supreme court ruling that needs to be challenged and overturned. Activist judges isn't a recent invention.

fairness would be a uniform tax rate with no exceptions, which is what the US Constitution calls for. Progressive taxation is a Marxist ideal and is inherently unfair because it punishes success although only to a certain point. If an individual's tax rate increased by 1% for every earned million after the first 5, a lot of Hollywood types would suddenly realize how unfair progressive taxation truly is and the democrats would lose a reliable base of advocates.

Then too the there is the super wealthy who have all their assets tied up in tax free foundations and the class of international financiers who are loath to ever pay any taxes in America but frequently benefit from grants and exemptions from the federal government.

I have to give GE some credit, they didn't just stand there and take it. I wish more companies would do this.

GE has been cooking the books for over forty years.

I remember from the sixties one expose that showed haw a triad of companies in cooperation, GE, Western Electric and some other 'Electric' would transfer funds and assets from one company to another on multiple levels and then one goes before some federal regulatory board, shows how it is losing money and then gets approval for a rate increase.