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> General Electric has 900 people working in its tax division. In 2010 it paid hardly any tax) It was penalized in two ways: First, it had to pay for those 900
by LeifCarrotson 10y ago
> General Electric has 900 people working in its tax division. In 2010 it paid hardly any tax)
It was penalized in two ways: First, it had to pay for those 900 people. Second, it had to organize its finances in such a way to take advantage of that tax code. The purpose of the tax code is (ostensibly) to reward behaviors which society values, in proportion to the value they could provide in general government revenue and the amount required to cause those behaviors. Maybe this is a good thing.
- woodandsteel 10y ago>First, it had to pay for those 900 people. That is less (probably far less) than it saved in not paying taxes. Otherwise it wouldn't spend money on them. >The purpose of the tax code is (ostensibly) to reward behaviors which society values But if corporate lobbyists have gotten loopholes inserted in the tax code, which they do all the time, then the corporations can behave in ways that obey the letter of the law but are bad for society.