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Over Last 10 Years, General Electric’s Effective Tax Rate Was 2.3 Percent

chgo 2012/02/28 18:38:01
Tax cheat General Electric over a 10-year period from 2002-2011, paid $1.9 billion in taxes on $81.2 billion in profits, giving it an effective tax rate of just 2.3 percent for the decade:

– From 2006 to 2011, GE’s net federal income taxes have been negative $2.7 billion, despite $39.2 billion in pretax U.S. profits over the six years.


– Over the past decade, GE’s effective federal income tax rate on its $81.2 billion in pretax U.S. profits has been at most 2.3 percent.


In the 10-year period CTJ examined, GE’s highest tax rate came in
2005, when it paid 27.5 percent, below the top tax rate in Obama’s
reform plan. Four times in that stretch, its tax rates was negative, most notably in 2010, when the company received more than $3 billion in tax refunds, giving it an effective rate of negative 64.2 percent (click the image to make it larger):



While GE is one of the worst offenders, it isn’t alone. The U.S. does
indeed have one of the world’s highest marginal corporate tax rates,
but the effective rate that corporations actually pay is much lower. In
2009, in fact, only Iceland had a lower effective rate, and only two countries collected less in revenue as a percent of GDP. As investor Warren Buffett noted on CNBC this morning, “It is a myth
that American corporations are paying 35 percent or anything like
it…Corporate taxes are not strangling American competitiveness.”

General Electric, one of the nation’s largest corporations, found itself
at the center of the corporate tax debate last year when the New York
Times discovered that it paid nothing in taxes, despite billions of dollars in profits. GE responded to the outcry by promising that its 2011 rate was “slated to return to more normal levels
because of the recovery of GE Capital, its financial arm. But according
to an analysis from Citizens for Tax Justice, the company’s 2011
effective tax rate was just 11.3 percent.

Read More: http://www.thinkprogress.org/economy/2012/02/27/43...

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  • ProudProgressive 2012/02/28 20:24:52
    ProudProgressive
    +1
    I don't think it's fair to call GE a "tax cheat". The Republicans hand in hand with Wall Street have created a tax and financial system that allows multibillion dollar corporations to pay nothing in taxes while those of us who are actual human beings bear the burden. Until we restore both the tax code and Wall Street regulations to sanity, this is going to continue to occur. But I can't necessarily blame GE. They are just using the rules that the conservatives created.
  • chgo ProudPr... 2012/02/28 20:38:14
    chgo
    From 2001- 2009, GE lobbyists were the ones spending millions lobbying Congress to write the IRS tax laws for their own benefit so to get their tax breaks.
    http://www.nytimes.com/2011/0...

    Revealed: The 30 corporations that spent more on lobbyists than they paid in federal taxes
    http://www.dailymail.co.uk/ne...

    GE spent $84 million, PG&E $79 million and Verizon Communications $52 million.
  • ProudPr... chgo 2012/02/28 20:49:19
    ProudProgressive
    +1
    Unfortunately, we have no restrictions on lobbying. However, most of the corporation-favoring tax and deregulatory legislation has been championed by the Republicans. As many of these lists of money given to Obama or other democrats they come up with, it's a sure bet that those same corporations also gave a hell of a lot of money to Republicans as well, often in the same race. And lobbying does not automatically mean that you get what you ask for. I believe the President is a man of integrity who has proven time and again that he is determined to put the needs of the nation ahead of partisan agendas, even when that might not be in the best interests of some of his donors.
  • tea for you 2012/02/28 19:10:40
    tea for you
    +2
    What is the total dollar amount of all assets and income under the
    control of the Catholic church? I would like "assets" to include all
    cash holdings, investments, property, valuable possessions, etc. I
    would like "income" to include the yearly income of the Catholic
    church, including donations by other countries, individuals,
    institutions, etc. I would like to see the answer presented as an
    itemized list of major church assets / income The tax on the worlds rich's organization is a big fat ZERO
  • chgo tea for... 2012/02/28 19:39:40
    chgo
    +1
    We can only guess until they do some in-deep research and investigation on that,
  • chgo tea for... 2012/02/28 19:40:59
    chgo
    Romney gave millions to his Mormon church last year. I got a tax write-off for that too.
  • tea for... chgo 2012/02/28 19:43:02 (edited)
    tea for you
    +1
    There shouldn't be a tax write off . Why should i pay for his church or anybody else's
  • goatman112003 2012/02/28 18:59:36
    goatman112003
    +1
    Bribery runs rampant in DC, what else is new.
  • bob 2012/02/28 18:56:20
    bob
    +1
    top donors to the obummer administration

    Goldman Sachs $1,013,091
    Harvard University $878,164
    Microsoft Corp $852,167
    Google Inc $814,540
    JPMorgan Chase & Co $808,799
    Citigroup Inc $736,771
    Time Warner $624,618
    Sidley Austin LLP $600,298
    Stanford University $595,716
    National Amusements Inc $563,798
    WilmerHale LLP $550,668
    Columbia University $547,852
    Skadden, Arps et al $543,539
    UBS AG $532,674
    IBM Corp $532,372
    General Electric $529,855
    US Government $513,308
    Morgan Stanley $512,232
    Latham & Watkins $503,295
  • Chief bob 2012/02/28 19:26:12
    Chief
    +1
    I wonder if Obama thinks one of his top donors should pay their fair share?
  • bob Chief 2012/02/28 19:28:10
    bob
    +1
    Makes you wonder.
  • Chief bob 2012/02/28 19:29:18
    Chief
    +1
    Notice he never mentions them when talking about paying a fair share.
  • chgo Chief 2012/02/28 19:30:59
    chgo
    they all should be pay their fair, including you.
  • Chief chgo 2012/02/28 19:34:13
    Chief
    +1
    What about the almost have that pay nothing? Is 0% a fair share for a family of 5 making almost $60,000 in gross income?
  • chgo Chief 2012/02/28 19:38:02
    chgo
    "Is 0% a fair share for a family of 5 making almost $60,000 in gross income?"

    Only in your retarded dreams, a family of 5 making almost $60,000 in gross income is paying 0 percent in federal taxes.
  • Chief chgo 2012/02/28 19:40:13
    Chief
    Are you saying that a family of 5 making almost $60,000 pays income taxes? I can prove it using actual tax forms. All I ask is that you be man enough to admit you are wrong when I do. Just the standard deduction, 5 exemptions, and the tax credit alone allows them not to pay any.
  • Evil 1 Chief 2012/02/28 19:46:23
    Evil 1
    What tax credit are you talking about?
  • Chief Evil 1 2012/02/28 19:52:22
    Chief
    child tax credit of $1000/each. chgonugget says that a family of 5 that makes almost $60,000 in gross income pays income taxes and that simply isn't true.
  • Evil 1 Chief 2012/02/28 20:00:48
    Evil 1
    Taxable income on an annual gross pay of $60,000.00 is $29,900.00 after the 5 child deductions. It leaves that individual owing income tax of $3,695.00. But then again if you are a liberal/progressive doing your taxes they pad them enough with BS exemptions to offset that tax. More than likely that is where they are coming from.
  • Chief Evil 1 2012/02/28 20:43:55
    Chief
    Are you making the assertion that I'm the Progressive?

    When you deduct $3000 in the child tax credit for 3 children it lowers the tax on exactly $60,000 to $395. I said around $60,000. That exact amount is $55,650 for this family of five and then the tax is only $1 for that amount. That amount assumes the family gets nothing more in the way of deductions, exemptions, and credits that any other family gets regardless of income.

    Look at what I posted 2 items below to chgonugget. It details how I came up with the number step by step.
  • chgo Chief 2012/02/28 21:27:59
    chgo
    And the top 1 percent don't take advantage of the child tax credit? they don't make kids, Sherlock? What you're saying is all false anyway. Prevent proof already or STFU!
  • Chief chgo 2012/02/28 21:35:45
    Chief
    +1
    I see you won't do what I posted below in the way of filling out the tax for for the family of 5. Didn't think you were man enough to start with.
  • chgo Chief 2012/02/28 22:11:21
    chgo
    [...]the most common is the Child Tax Credit, but for a relatively small number of families, the child tax credit will exceed their tax liability.
  • Evil 1 Chief 2012/02/28 23:04:57
    Evil 1
    I'm not making that assertation at all. I just ran the figures based on $60,0000 in income and that is the information that came up. I re-ran the figures and it came up with the oweing $499.00 in federal taxes at the end of the year. And you know the individual will have weekly or bi-weekly federal taxes taken out so more than likely at the end of the year when he files he will receive a refund.
  • Chief Evil 1 2012/02/29 13:58:29
    Chief
    +1
    I used AROUND $60,000 initially based on some rough calculations in my head. When I actually used the 1040 form, it came to the exact amount I posted before. In the end, that family will get back any amount taken out over the year. If the gross income was just slightly less than the $56,650 exact amount, they would qualify for the EIC giving them more in a return than they had taken out. Guess who is paying for that handout?

    We seem to be in agreement. Sorry for the confusion.
  • Evil 1 Chief 2012/02/29 14:05:06
    Evil 1
    Not a problem. Have a good day.
  • chgo Chief 2012/02/28 19:51:34
    chgo
    "...All I ask is that you be man enough to admit you are wrong when I do..."

    Here's your answer:
    obamaphobia

    And I an not wrong.

    Where's the legitimate tax forms? And if it's true, you can thank the Bush tax cuts for that.
  • Chief chgo 2012/02/28 20:38:06
    Chief
    +1
    It has nothing to do with the Bush tax cuts as people like you want to use regularly. The three things I mentioned - standard deduction, exemptions, and the child tax credit - were in place before Bush ever became President so they can't be blamed on him.

    We're going to test whether or not you are the man enough you claim to be. A link to the 1040 long form is below so you can follow along:

    http://www.irs.gov/pub/irs-pd...

    1) Line 2 is checked married filing jointly

    2) Line 6 will have a total of 5 exemptions. One for each parent and three for the total number of children.

    3) Enter $55,650 on line 7

    4) On line 22, 37, and 38 also enter $55,650 as no other sources of income or adjusted gross income deductions apply. We are keeping it simple.

    5) Line 40 will have $11,600 for the married filing jointly (line 2) standard deduction.

    6) Line 41 will now be $44,050 when you subtract the standard deduction (line 40) from the AGI (line 38)

    7) Line 42 will be $18,500 for the 5 exemptions listed on line 6.

    8) Line 43, taxable income, is now $25,550.

    9) Using the tax table and the column for Married Filing Jointly, the tax on $25,550 is $3,001 We not finished because the child tax credits must come off that number.

    10) Line 51 and 54 will be $3000. That's $1000/chi...





    It has nothing to do with the Bush tax cuts as people like you want to use regularly. The three things I mentioned - standard deduction, exemptions, and the child tax credit - were in place before Bush ever became President so they can't be blamed on him.

    We're going to test whether or not you are the man enough you claim to be. A link to the 1040 long form is below so you can follow along:

    http://www.irs.gov/pub/irs-pd...

    1) Line 2 is checked married filing jointly

    2) Line 6 will have a total of 5 exemptions. One for each parent and three for the total number of children.

    3) Enter $55,650 on line 7

    4) On line 22, 37, and 38 also enter $55,650 as no other sources of income or adjusted gross income deductions apply. We are keeping it simple.

    5) Line 40 will have $11,600 for the married filing jointly (line 2) standard deduction.

    6) Line 41 will now be $44,050 when you subtract the standard deduction (line 40) from the AGI (line 38)

    7) Line 42 will be $18,500 for the 5 exemptions listed on line 6.

    8) Line 43, taxable income, is now $25,550.

    9) Using the tax table and the column for Married Filing Jointly, the tax on $25,550 is $3,001 We not finished because the child tax credits must come off that number.

    10) Line 51 and 54 will be $3000. That's $1000/child x 3 children. Credits are different from deduction/exemptions in that they directly reduce the amount of tax not just the amount on which tax is figured.

    11) Line 55 and 61 will be $1. That's the tax of $3001 from the tax tables on $25,550 taxable income minus a $3000 credit.

    That means that family will pay only $1 in federal income taxes assuming they have no other deductions outside the basic ones all filer get regardless of income level and have been around BEFORE Bush was President. It also means you can't blame him.

    It proves you are wrong and I am waiting to see if you are man enough to admit it.
    (more)
  • chgo Chief 2012/02/28 21:34:07 (edited)
    chgo
    I know what a damn US income tax return looks like. And you' don't think the rich 1 percent don't make kids and take advantage of child tax credit? What is your point? P
  • Chief chgo 2012/02/28 22:27:53
    Chief
    +1
    You are the one who said in my retarded dreams that a family of 5 didn't pay incomes taxes if they made around $60,000. I proved what I said I would prove and just like I thought you aren't man enough to admit when you're wrong. Why would I think a Liberal would be.

    By the way, those in the 1% aren't eligible for the child tax credit. I can prove that too but like the $60,000 claim I doubt you would be man enough to admit you are wrong about that, too. Looking at the instructions for line 51 in the 1040 Instructions booklet would show you that.
  • chgo Chief 2012/02/28 23:04:20
    chgo
    The per-child amount was originally set at $400 in 1998, and has since increased to $1,000 due to The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. It was extended the $1,000 cap through the end of 2012..
    http://www.gpo.gov/fdsys/pkg/...
    If the law is not changed, the maximum amount will return to $500 per-child in 2013.

    And you think the rich don't take advantage of like tax credits and deductions? They take advantage of nonrefundable investment tax credits, State tax credits, Renewable Energy/Investment Tax Credit, deduction for loss on sale, exchange, capital, or abandonment of both business and non-business income producing assets, Personal deductions,Foreign tax credit, business credits, and I can go on?

    "...those in the 1% aren't eligible for the child tax credit."

    And they shouldn't. Is that class warfare?

    "I can prove that too..."

    Then do it already, genius. I asked to provide that at least three times already.


    already.
  • Chief chgo 2012/02/29 14:07:11
    Chief
    Bush wasn't President in 2010. The point is that it was there before Bush was President. The standard deduction and personal exemption was also there before Bush and increases every year a slight amount and did so before Bush was President and has done so under Obama.

    You don't get any credit just because you have a certain amount of money. It's not food stamps or welfare. Something has to be done to qualify for those credits.

    You're backtracking now. Your claim wasn't whether they should or shouldn't as that is a difference issue. YOU claimed they received that credit and, once again, I proved you wrong. If you want to discuss whether they should or not, I'll be glad to do that but the issue was whether or nor they got. You said they did and you were WRONG.

    You claimed that a family of 5 DID pay income taxes if they made around $60,000. I said I could prove to you they didn't and I proved it. You, as expected, won't be a man and admit you're wrong but go off on some tangent about other things. I also proved that those in the top income brackets don't get the child tax credit which you claimed they got. BE A MAN and admit your error. I doubt you actually went through the tax form and put in the number I gave proving the claim I made. That way you can still, through ignorance, make your claim. At some point, ignorance becomes plain 'ole stupid in your case.
  • chgo Chief 2012/02/29 15:28:37
    chgo
    a family of five doesn't pay 0 percent in federal income
    E taxes even if they take advantage if the chid tax credits, period.

    For starters, you've failed to distinguish between gross and taxable income (the $60,000 family only has $40,400 in taxable income, according to the CBPP) and by ignoring the child tax credit, which benefits wealthier families more than poorer ones. The family making $60,000 would actually pay about $8,043 in payroll and income taxes.
  • Chief chgo 2012/02/29 18:36:47
    Chief
    If you will go over the 1040 tax form I posted and put the numbers in where I indicated, you will find that a family of five pays 0 in income taxes at an income of almost $60,000. If you don't do it, that shows you really don't want to know the truth.

    I distinguished in my post the term gross income and taxable income. You apparently didn't read it or you would have seen it.

    It shows you really don't know what you are talking about if you think that a gross income of $60,000 has a taxable income of $40,000. Through the standard deduction of $11,600 and 5 exemptions worth $18,500, their taxable income is already less than $30,000. These aren't my numbers. They are the numbers from the 1040 form.

    I have already shown that families considered wealthy don't get the child tax credit. Something you have completely ignored is the Earned Income Credit which allows families that qualify to actually get back more in a return than they had taken out in taxes.

    The discussion isn't about payroll taxes as everyone pays them at the same rate. Not even a comparison when talking about income taxes.

    Here's my challenge to you. If you are a man, you will accept it. If you don't, it tells me you are just another left wing idiot that can't handle the truth and needs to STFU before making himself look even more foolish.
  • chgo Chief 2012/02/29 19:34:45 (edited)
    chgo
    Are you slow or just a troll? yOU still don't know the difference between gross and taxable income.

    Earned Income and adjusted gross income (AGI) MUST each be less than:
    $43,998 ($49,078 married filing jointly) with three or more qualifying children
    $40,964 ($46,044 married filing jointly) with two qualifying children
    $36,052 ($41,132 married filing jointly) with one qualifying child
    $13,660 ($18,740 married filing jointly) with no qualifying children

    Where do you see you can get a child tax credit if you make 60K GROSS?

    Tax Year 2011 maximum credit:
    $5,751 with three or more qualifying children
    $5,112 with two qualifying children
    $3,094 with one qualifying child
    $464 with no qualifying children
    http://www.irs.gov/individual...


    Investment income cannot be greater than $3,100.



    "The discussion isn't about payroll taxes as everyone pays them at the same rate. Not even a comparison when talking about income taxes. "

    who said it was?
  • Chief chgo 2012/02/29 19:59:35
    Chief
    Didn't say they qualified for EIC.

    Do the form for determining if the child tax credit applies in the 1040 instructions and you will find they qualify for $3000.

    You brought up payroll taxes in an income tax discussion.

    Still haven't done the 1040 form I see. Probably won't.
  • chgo Chief 2012/02/29 19:43:38
    chgo
    You're doing whatever you're doing wrong. I suggest you get yourself an accountant or walk your ass up to h and r block, rather than you do your taxes yourself, genius. You clearly don;t have enough brains or sense to file your taxes correctly without reading basic information wrong. Youre gonna mess aeound and get your audit, Sherlock.
  • Chief chgo 2012/02/29 20:02:02
    Chief
    Fill out the 1040 form with the numbers I gave above and show me I'm wrong . Done my taxes for years and had them verified by an accountant with no problems
  • bob chgo 2012/02/28 19:36:00
    bob
    +1
    could you define fair share please?
  • chgo bob 2012/02/28 19:51:32
    chgo
    +1
    Corps like GE should pay A marginal tax rate of 40-50 percent. Corps who return or has business in the US should get tax breaks and should have lower marginal taxes levied on them. People who have non-earned income like dividends and capital gains should pay the same tax rate as people who earned money from wages or salary. The top 1 percent should pay 39.5 percent too.

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