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That is interesting and makes sense. I didn't know that. Of course then if the company is suffering huge losses then the ceo and other upper management may be incompetent
That may be the case. But it also may reflect a natural business cycle (among other things), macro economic conditions, etc.
That is interesting and makes sense. I didn't know that. Of course then if the company is suffering huge losses then the ceo and other upper management may be incompetent
Were you asleep through 2007-2009? A lot of companies lost money and turned over their management teams. Also a company losing money doesn't mean it's poorly run either you'd have to look a little deeper than that
It appears that you might not have understood completely the previous question.
It is not uncommon for a company that has current income to have a reduced (or zero) tax bill due to prior period losses being carried forward. This is perfectly legitimate, and Net Operating Loss carryovers are available for both businesses and individuals. It is, however, an issue that is extremely easy to demagogue, and many news reporters who are less than honest will often spin these stories in a way that makes it easy for many to not understand exactly what is actually happening.
People often overlook reality when emotion comes into play
Quote:
Williams also pointed to a company press release, from April 17, on taxes paid by GE. According to that release, GE paid an effective global tax rate of 7 percent in 2010, counting money paid “to the IRS and foreign counterparts” in other nations. That rate was particularly low, Williams said, because the company lost $32 billion in its financial business during the global financial crisis.
According to the company release, GE’s effective tax rate jumped to 29 percent in 2011. The company paid $2.9 billion in worldwide corporate income tax in 2011, and another $1 billion in other U.S. taxes that year, the release states.
We asked Williams how much of the $2.9 billion in worldwide corporate taxes was paid to the U.S. government, and how much the company paid in U.S. corporate income taxes in 2010. “Like virtually all other companies, we do not break out tax data on a country by country basis,” Williams said. “Instead, we disclose our worldwide payments and rates. However, we did pay federal income taxes.”
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