It’s Time to Boycott General Electric
The top tax bracket for U.S. corporations is 35%, one of the highest in the world. General Electric made $14 billion in profit in 2010, $5 billion of which came from the United States. Yet, in 2010 – for the second year in a row – the company paid no U.S. income tax. In fact, it received a $3.2 billion tax credit.
Few companies benefit more from crony capitalism than General Electric, which supplies the government with everything from light bulbs to turbines to jet engines. And, the company looks to make even more in the future as a favored insider in green energy and alternate energy. The company’s chairman, Jeffrey Immelt, is a good friend of President Obama and his key advisor on business.
This demonstrates the need for several things:
- Take a closer look at the country’s business tax structure
- Close tax loopholes
- Boycott General Electric and it’s products because, if as Vice President Slo Joe Biden says, “It’s patriotic to pay taxes,” General Electric must be the least patriotic company in the country. Need an appliance? There’s Whirlpool, Amana or Fridgidaire. Need light bulbs? Try Philips or Sylvania.
The top tax bracket for U.S. corporations stands at 35 percent, one of the highest rates in the world. So how is it possible that a giant of American business, General Electric, paid nothing in federal taxes last year, even as it made billions in profit?
And should the CEO of GE, Jeffrey Immelt, be advising the president on business?
For two years, President Obama has been talking about the need for corporate tax reform, declaring that the system is too complicated and that companies pay too much.
“Simplify, eliminate loopholes, treat everybody fairly,” Obama said in February.
For those unaccustomed to the loopholes and shelters of the corporate tax code, GE’s success at avoiding taxes is nothing short of extraordinary. The company, led by Immelt, earned $14.2 billion in profits in 2010, but it paid not a penny in taxes because the bulk of those profits, some $9 billion, were offshore. In fact, GE got a $3.2 billion tax benefit.
2010 was the second year in a row that GE recorded billions in profits and paid no taxes.
During that same period, Immelt has been a close advisor to the president on the business community, a relationship that rubs some the wrong way. Immelt serves as the chairman of Obama’s Council on Jobs and Competitiveness.
Hat tip: ABC News