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I'm sure they pay the taxes they owe and they do it within the legal framework they operate in, otherwise we would be reading a whole other article about corpor
by JfromSw 15y ago
I'm sure they pay the taxes they owe and they do it within the legal framework they operate in, otherwise we would be reading a whole other article about corporate fraud.
Instead the article is about a company that paid zero in taxes on their profit thanks to "extraordinary use of tax breaks and clever accounting".
I'm not against any of the tax structures you mention, GE doesn't need the best tax experts in the world for those things. So even though I haven't read the 57,000 page tax return I am willing to guess that all of the tax breaks used where not of the same considerate nature as the ones you mention.
It just seems like the primary motivation is to avoid paying taxes, not switching to green energy or even pay health insurance. The article even mentions "inefficient ways that GE structures its businesses just to avoid paying taxes", which, if true, is a major indicator.
Of course I may be completely wrong, I don't know what the motivation is and why they seem to work so hard not to pay taxes on their profit.
- yummyfajitas 15y agoThe biggest tax break they got is a loss carryforward. This is a one time event due to losses incurred by GE Capital, and is almost certainly not something they did on purpose. http://www.investopedia.com/terms/l/losscarryforward.asp#axzz1edUBe5si http://www.investopedia.com/terms/l/losscarryforward.asp#axz... In contrast, GE's green energy and paying for employee health insurance are done directly to avoid paying taxes. GE's windmills are profitable primarily because of the tax benefits. And there is no business reason whatsoever why a company should pay for employee health insurance, or car insurance, or cable TV. Companies pay for health insurance because it reduces the tax bill, and they generally don't pay for car insurance (which doesn't reduce the tax bill).