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They are not loopholes. They are laws in the tax code.
If they were put there incorrectly or by mistake then Congress and the IRS have had years to "fix them" but they haven't.
They are not illegal and not cheating. They are there for any taxpayer to take, given their level of income.
Beg pardon? I quoted from the link I provided in my post directly, word for word. How is that a misquote, and where exactly is the error in my numbers?
You cut off the sentence right before the explanation was given. The 7% global rate was particularly low and not the norm. Their effective rate was 29% in 2011.
Quote:
Originally Posted by lycos679
You misquoted what the document said. Their effective tax rate was low due to capital losses from the financial crisis.
"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."
That $32 billion in losses was NOT mentioned by the MSM when they went on their rampage of corporations that pay no taxes.
That, my friends, is propaganda. These outlets know that Americans won't dig any further than the article at hand.
The government knows that Americans won't dig any further than the sentences being spoken to them.
You cut off the sentence right before the explanation was given. The 7% global rate was particularly low and not the norm. Their effective rate was 29% in 2011.
They are not loopholes. They are laws in the tax code.
If they were put there incorrectly or by mistake then Congress and the IRS have had years to "fix them" but they haven't.
They are not illegal and not cheating. They are there for any taxpayer to take, given their level of income.
Agreed...that's why I included (unfortuately legal) in my post. If they were cheating, the IRS or DOJ would be all over it.
I don't have any interest in GE per se, but what were their revenues, net income and US taxes in 2010 then?
You would need their tax return for that year to determine that, but tax returns are private. You do realize that most companies posted losses from 2009, right? They paid about $1Billion is US taxes in 2010 and about a 7% global rate. In 2011 they paid an effective rate of 29% and $3.9 billion.
You would need their tax return for that year to determine that, but tax returns are private. You do realize that most companies posted losses from 2009, right? They paid about $1Billion is US taxes in 2010 and about a 7% global rate.
I don't know that, but it's possible right after the meltdown, do you have a source?
Another statement on GE 2010 "We expect to have a small U.S. income tax liability for 2010," GE chief spokesman Gary Sheffer told us. How big is small? GE declined to say. The number is unlikely to ever be disclosed unless GE goes public with it, or is forced to do so." http://features.blogs.fortune.cnn.co....rEhpDxq7.dpuf
Quote:
Originally Posted by lycos679
In 2011 they paid an effective rate of 29% and $3.9 billion.
As for 2011, we'll never know as you've noted in an earlier post. Another reference "The best figure we do have for what GE pays in taxes comes from its financial statements and it's something called "cash taxes paid." In 2011, that figure was $2.9 billion. Compare it to the $20 billion GE made in 2011 before taxes and that works out to a rate of 14.4%. But that's for all of GE's taxes everywhere. GE won't say how much of that money was for local or federal U.S. taxes or to foreign governments, to which GE appears to pay the majority of its taxes these days. What's more, some of that money could have been for back taxes. And some could eventually be refunded." What GE paid in taxes in 2011: Who knows? - The Term Sheet: Fortune's deals blogTerm Sheet
I don't know that, but it's possible right after the meltdown, do you have a source?
Another statement on GE 2010 "We expect to have a small U.S. income tax liability for 2010," GE chief spokesman Gary Sheffer told us. How big is small? GE declined to say. The number is unlikely to ever be disclosed unless GE goes public with it, or is forced to do so." The truth about GE's tax bill - Fortune Features
As for 2011, we'll never know as you've noted in an earlier post. Another reference "The best figure we do have for what GE pays in taxes comes from its financial statements and it's something called "cash taxes paid." In 2011, that figure was $2.9 billion. Compare it to the $20 billion GE made in 2011 before taxes and that works out to a rate of 14.4%. But that's for all of GE's taxes everywhere. GE won't say how much of that money was for local or federal U.S. taxes or to foreign governments, to which GE appears to pay the majority of its taxes these days. What's more, some of that money could have been for back taxes. And some could eventually be refunded." What GE paid in taxes in 2011: Who knows? - The Term Sheet: Fortune's deals blogTerm Sheet
Well, the source was the factcheck website. As I have already stated financial accounting and tax accounting are two very different things. Tax accounting generally uses a cash basis and financial uses GAAP. You can show a financial profit and not owe any tax, likewise you can show a loss and owe tax. Whatever writer tried to come up with a 14.4% tax rate has never taken intermediate accounting. Any accounting or even finance student can tell you there is a difference between the accounting methods. G.E. doesn't break down their taxes by country so we will probably never know the exact dollar amount paid in 2010. Maybe G.E. will release their tax returns, but they aren't required to.
Quote:
Originally Posted by lycos679
You misquoted what the document said. Their effective tax rate was low due to capital losses from the financial crisis.
"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."
Wow, betrayed by your own link, which says "GE paid an effective global tax rate of 7 percent in 2010, counting money paid “to the IRS and foreign counterparts” in other nations." I think the OP was talking about US federal taxes, don't you?
And if you spend 30 seconds on Google you find:
"Additionally, a document GE provided to TheDC establishes that the company paid $2.671 billion globally in income tax in 2010" - suggesting GE paid US taxes of 2.6%. Seems a little low to me.
Continuing:
"GE did pay taxes in 2010, in fact it paid $1 billion in U.S. taxes that year, including federal income taxes,” company spokesman Andrew Williams told TheDC. He later clarified that the $1 billion number included “all state, local and federal taxes in the U.S.” - so the 2.6% they paid included all state, local and federal taxes. Who knows how much they paid in US federal taxes, they won't say...
Shouldn't our jobs czar get some sort of break for all the hard work he put in creating all these new jobs?
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