GE and taxes…..

Much has been written/said recently about Government General Electric and the taxes that it has paid, or NOT

It “earned” $14.2 BILLION in 2010 and paid a grand total of $0 in taxes to the United States Government.  In the last 5 years, GE has earned more than $26 BILLION and received more than $4 BILLION in tax credits from the IRS.

Now don’t get me wrong, I understand some of the accounting that goes into a “tax loss carry forward”.  I DO believe that “honest” companies should be able to carry a loss forward, into another year to offset profits, in order to reduce taxes.

However, here is the problem that I am having.  When the latest recession began, as a result of indiscriminate lending, of which GE (through its subsidiary GE Capital) was a HUGE beneficiary, GE Capital provided 40% of the profits of GE.  GE Capital was involved in ALL of the kinds of “shady” loans, CDO’s, etc.  They were using the lax loan standards, approved and being used by all of the other major players, to maximize their fees while limiting their exposure.  Still, they did as poor a job, as all the other major players, or worse.  At that point in time, GE Capital “could” have bankrupted GE.

Then GE used the “Bank Bailouts” (TARP, TLGP, Stimulus, etc.) to the tune of at least $140 BILLION to “save” themselves.  That is, they TOOK money from US, and used it to stay in business and make profits.  And, now they are “using” the losses that they incurred to evade/avoid paying taxes to US.

Here is what I would like to see.  IF a company used the United States Government to remain in business, and to profit from free, or cheap, money loaned to it; then ALL previous losses are negated.  No more shenanigans, those companies will be ALLOWED to say THANK YOU, for saving us and our overpaid jobs, to the American public, and they will pay TAXES on ALL income generated.  Hey, GE let’s call it even and you PAY the taxes that you OWE!!

Let your representative know what you think, and if you think that you do NOT pay enough in taxes, NO ONE is stopping you from sending more.

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