President Barack Obama has been unabashed in his close association with General Electric CEO Jeffrey R. Immelt, including naming him to head the President’s Council on Jobs and Competitiveness. Obama has continued to shower such honors and attention on Immelt despite the fact that GE has avoided paying ANY taxes. Indeed, GE has demanded a tax benefit of $3.2 billion. Now, GE has posted a 77% increase in profits while paying less taxes than any of its factory workers.
Investors are doing well even if the taxpayers are getting killed. The company increased its quarterly dividend for the third time in the past year.
Immelt took the opportunity to declare “GE has emerged from the recession a stronger, more competitive company.” Of course, GE takes a different tact in avoiding any taxes.
GE is able to avoid paying any taxes by using its army of lobbyists to get tax breaks from Congress, which has proven again to be in the pocket of corporate interests. This is a bipartisan sellout as both parties have caved to such demands. The company also has used “creative” accounting that enables it to concentrate its profits offshore.
Yet, Obama still embraces Immelt as a model CEO and repeatedly invites him to the White House to advise him and other companies on how to economic and business issues. Imagine the response of liberal members and commentators if George Bush relied so heavily on such a corporate figure. There were many such controversies and the press and commentators were outraged. Yet, once again, Obama is not viewed as a corporate shill or tool where Bush was denounced in the very same terms.
It should be a national scandal that a CEO who avoids any taxes should be given such a high-ranking position. Indeed, there should be hearings on how a company can get away with windfall profits while paying less in taxes than a waitress at a truck stop in I-95.
Source: WSJ
Jonathan Turley
We also must remember that in addition to not paying taxes, GE is one of the largest defense contractors and so they take our money in other ways. If you believe that the tax burden and suffering burden should be equal, then you have not been paying attention. The only people not suffering these days are the high Corporate Executives and the wealthy. All the rest of us, even with comfortable incomes are bearing the burden of an unequal
distribution of financial responsibility.
The President’s appointment of Imelt indicated that those calling him a leftists are blind, partisan fools, who wouldn’t know a “leftist” if bitten by one. When you get you news from the mainstream media, you get the equivalent of TASS reporting to the citizens of the USSR.
“This is why I am libertarian and would rather a dog run the country. At least it could not screw me any more than these people do.”
czech80,
I agree with your statement that:
“Liberal or conservative. Democrat or Republican. It’s all the same Big Government party these days with all the lobbyists and crony capitalism to boot.”
We live in a Corporatocracy fast heading for feudalism. Where you’ve got it wrong is in thinking that libertarianism will not make it much worse. Under libertarianism there will be no restraints on Corporatists. Maybe you won’t have to pay taxes but that will be made up for in services that you now get for free. The costs of these new pay services will keep rising as corporations become monopolies and will set prices so high that you will find the “average Joe” reduced to a serf, the middle-class a distant memory and your life reduced to poverty and fear. Libertarianism is something that sounds like a great idea, except it can’t work. In that respect it is no different then communism in the end result, which is a powerful class absolutely rules, with no checks upon it. If it’s an “ism” it will always screw the little guy in the end.
Liberal or conservative. Democrat or Republican. It’s all the same Big Government party these days with all the lobbyists and crony capitalism to boot.
Too big too fail! Green credits!
Doing wonders for the average Joe’s salary, dollar value, and inflation.
This is why I am libertarian and would rather a dog run the country. At least it could not screw me any more than these people do.
Buddha Is Laughing
1, April 21, 2011 at 9:39 am
Irrelevant.
GE isn’t paying their fair share of taxes.
Screw their shareholders.
=======================================
YES! … YES! … and YES!!
rafflaw:
the nation should be outraged that our gov’mint engages in wars of aggression, spends money on stupid things and has a bloated government payroll.
Taxes are good for the soul. I dont give to charity anymore becuase I pay taxes. I know the gov’mint will take care of people so I am doing my civic duty by paying taxes and also my social duty. I am helping the poor, feeding the hungry, housing the homeless, healing the lame, caring for the sick and subsidizing the rich (those who make over $100,000 and only pay 15% because I have to go to H&R Block).
That last word should be representation! I am getting upset too early in the morning!! 🙂
GE is just one of many large corporations that pay little or no Federal taxes. They do it legally because of tax breaks provided by our corporation friendly Congress. The nation should be outraged that Congress allows these thieves to do this while at the same time encouraging them through tax breaks to move American jobs overseas.
Buddha,
I have one slight correction to suggest: unfair taxation with improper representatio.
Business as usual is right. Obama and his friends know we don’t have anywhere else to go. It’s doubtful the republicans would put up anybody better than Obama, if they actually had anybody better.
Even if we got a mass demostration going in front of the White House to protest what he is doing, they know we don ‘t have anywhere to go.
I am so disgusted.
Buddha,
You don’t get it, The company will STARVE if it pays taxes. Just like a person. Why do you love malnutrition?
GE also controls a vast propaganda network composed of TV, movie, news media, and communication power houses.
They recently tried to hide it, but “the wayback machine” prevailed.
http://blogdredd.blogspot.com/2011/04/momcom-mean-welfare-queen-2.html
GE also employees former IRS staff to help them avoid taxes.
Let’s look at those numbers, shall we?
0% + 3,200,000,000 in tax benefits on a company with earnings of $14,200,000,000 for 2010.
VS.
35% of some guy making $40,000/year.
No. If anyone needs some screwing, it’s those greed whores at companies like GE.
The problem isn’t taxes themselves.
It’s disproportionate and unfair taxes where the burden is wrongly shifted downward through the earnings populace instead of getting tax revenues where the income is actually earned at the corporate level.
You know.
Unfair taxation without proper representation.
The kind of thing that started the American Revolution.
There is an industry built around helping corporations and billionaires avoid taxes. GE has one of the best tax attorneys in the business. He previously worked for the government…
neither are you. If you are a professional you probably pay 15%. Why arent you and everyone else paying 28 to 35%?
Get rid of deductions so we all pay more taxes, screw the working man. He needs to pay his taxes before he is allowed to put food on his table. We all need to pay our fair share.
Further proof that the tea party and other right wingers are wrong when they call Obama a socialist. What are they thinking?
Anyone as to why? Anyone? Bueller?
Because in a non-criminal enterprise, you service debt – including tax debts – before paying ANY dividends.
Irrelevant.
GE isn’t paying their fair share of taxes.
Screw their shareholders.
maybe not but they did increase the dividend to shareholders.
Business as usual…