Truth Alliance Newsletter Signup
     Follow Us   |   Truth Alliance RSS Link     Truth Alliance Facebook Link     Truth Alliance Channel     Truth Alliance Live Documentaries
  Archive > News
Search

GE Filed 57,000-Page Tax Return, Paid No Taxes on $14 Billion in Profits

By John McCormack | WeeklyStandard.com | Nov. 17, 2011

General Electric, one of the largest corporations in America, filed a whopping 57,000-page federal tax return earlier this year but didn't pay taxes on $14 billion in profits. The return, which was filed electronically, would have been 19 feet high if printed out and stacked.

The fact that GE paid no taxes in 2010 was widely reported earlier this year, but the size of its tax return first came to light when House budget committee chairman Paul Ryan (R, Wisc.) made the case for corporate tax reform at a recent townhall meeting. "GE was able to utilize all of these various loopholes, all of these various deductions--it's legal," Ryan said. Nine billion dollars of GE's profits came overseas, outside the jurisdiction of U.S. tax law. GE wasn't taxed on $5 billion in U.S. profits because it utilized numerous deductions and tax credits, including tax breaks for investments in low-income housing, green energy, research and development, as well as depreciation of property.

"I asked the GE tax officer, 'How long was your tax form?'" Ryan said. "He said, 'Well, we file electronically, we don't measure in pages.'" Ryan asked for an estimate, which came back at a stunning 57,000 pages. When Ryan relayed the story at the townhall meeting in Janesville, there were audible gasps from the crowd. 

Ken Kies, a tax lawyer who represents GE, confirmed to THE WEEKLY STANDARD the tax return would have been 57,000 pages had it been filed on paper. The size of GE's tax return has more than doubled in the last five years.

Ryan used the data point to underscore the irrationality of the corporate income tax code. He also contrasted GE with UPS to make the point that the corporate income tax code doesn't make sense. "UPS paid a 34 percent effective tax rate," while its biggest foreign competitor, DHL, paid a 24 percent tax rate, Ryan said. 

The problems with the corporate taxes occur because "Republicans and Democrats, both parties, sit in Congress and they're picking winners and losers," Ryan said. The solution, according to the Wisconsin congressman: "Get rid of those loopholes and lower tax rates by a corresponding amount. Don't lose revenue, but for every loophole you pull out, and deny a company from being able to get this little carveout, you can lower the rates so we can be more competitive with our competitors overseas. We want to stem the bleeding of jobs going overseas, of foreign companies buying U.S. companies and taking headquarters overseas." 

Ryan is hopeful that President Obama will work with Republicans on corporate tax reform. "This is the one thing I think we've got some bipartisan agreement on," he said. 


Related

The IRS’s Job Is To Violate Our Liberties
Apple Avoided Taxes on Overseas Billions, Senate Panel Finds
U.S. tax dollars promote Monsanto's GMO crops overseas: report
Colorado Lawmakers Set Taxes And Rules For Marijuana Sales
How Empires Fall
The Global Elite Are Hiding 18 Trillion Dollars In Offshore Banks
Google avoids tax on £10bn after doubling amount of money it puts into company in Bermudan tax haven
Tax hitmen to track your spending
Geithner: Obama Willing To Go Over The Cliff If GOP Won’t Agree To Tax Hikes
Republicans and Taxes

Tags

Taxes, General Electric

Comments
Only registered users may post comments.
~No live broadcasts this hour~
 
TruthAlliance.net
Email Address:  
Distributions

Subscribe

© Copyright 2007-2013 Truth Alliance inc. All Rights Reserved