In fact, G.E. claimed a tax benefit of $3.2 billion.
that's how many companies finance themselves. they pay the profits to the SHAREHOLDERS and pay zero tax. the SHAREHOLDERS gain a bigger dividend and they are the ones to pay the tax which works out to a lower tax rate and everyone wins except the IRS.
the difference is miniscule. ah, class warfare, bleed to death those with enough smarts and gumption to be successful.
do your homework on tax benefits and then you'll understand. or not, being a liberal.
Hmm ...and even Reagan agrees with me.
While G.E.’s declining tax rates have bolstered profits and helped the company continue paying dividends to shareholders during the economic downturn, some tax experts question what taxpayers are getting in return.
Since 2002, the company has eliminated a fifth of its work force in the United States while increasing overseas employment.
In that time, G.E.’s accumulated offshore profits have risen to $92 billion from $15 billion.
G.E. and other financial services firms won a change in tax law that would allow multinationals to avoid taxes. The company would no longer have to pay American tax on the interest income as long as the profits remained offshore.
GE keeps it's profits in low-tax countries Over the last three years, 46 percent of the company’s revenue was in the United States,
but just 18 percent of its profits.This tax Loophole is called
active financing. (legalese for Tax avoidance!!!) .
President Ronald Reagan overhauled the tax system after learning that G.E. — a company for which he had once worked as a commercial pitchman — was among dozens of corporations that had used accounting gamesmanship to avoid paying any taxes. “I didn’t realize things had gotten that far out of line,” Mr. Reagan told the Treasury secretary, Donald T. Regan, according to Mr. Regan’s 1988 memoir. The president supported a change that closed loopholes and required G.E. to pay a far higher effective rate, up to 32.5 percent.
Bug,
Do your homework then perhaps you you can debate based on factual data and gain an understanding or not, being a conservative, Liberal, independent or otherwise.
Nuff said ,
Semper Fi