Tax payers, don’t try this at home. Apparently GE made huge profits and avoided paying U.S. taxes for 2010. Company officials point out that GE is scrupulous in compliance.
CEO, Jeffrey Immelt, is also an economic advisor to President Barak Obama. Obama is on record as saying that companies pay too much in taxes. Obviously he isn’t talking about General Electric. Immelt serves as chairman of the influential Council on Jobs and Competiveness set up by Obama. Nit pickers say that the fox is giving advice on poultry production and security.
This is the second year in a row for GE to have both huge profits and no taxes. GE took a hit during the recession like all other large companies. This carry over loss of $3 billion in the financial arm, GE Capital, is part of the reason that no taxes are due.
The other factor is where the profits are being made. General Electric is making the big bucks off shore in China, India and Brazil as well as other countries. Of their $14.2 billion in profits, $9 billion was made outside of the U.S.
The disconcerting fact is that they are not the only big company making hay in the untaxed international market place. General Motors, Ford and Walmart have recovered mainly by virtue of their global positions.
Meanwhile the US continues to have a grossly unbalanced budget and an increasing national debt.