Thursday, March 31, 2011

Immelt Explains Low GE (GE) Taxes

The nonsensical and misleading article in the New York Times (NYSE:NYT) about the faux outrage over General Electric (NYSE:GE) not paying taxes last year when they made billions in profits, shows the ignorance of writers there and why it continues to be a relic from the past.

It's not that I like GE that much either, as they're far too subsidized and lobbied up in my view, and act and operate more like a quasi-government entity than a corporation competing in a free market (if there still was one).

In a recent speech, Immelt said this about the tax situation, “Our tax rate in 2008 and 2009 was low. We lost $32 billion in our financial-services businesses in that time period. It’s a tough way to get a low tax rate. Our tax rate is going to be much higher in 2011 and the future, but let me tell you, we got socked with losses during that time period.”

Concerning tax reform, Immelt added, “Rarely does business speak with one voice, but they do on taxes. Our system is old, it’s outdated, it’s complicated. And all of us are for closing the loopholes. Absolutely a lower corporate tax rate, and a territorial system, just like our global competitors have.”

General Electric spends more on lobbying than any other corporation, putting out $4.18 million in 2010 alone.

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