Posted on 04/20/2010 6:56:02 PM PDT by EBH
Here's how: Although GE earned lots of money last year - they did it overseas and not in the U.S.: General Electric's American operations lost about $400 million, while its international businesses netted nearly $11 billion in profit.
After deductions and adjustments - GE reported a negative 10.5 percent federal income tax rate... and wound up with a "tax benefit" of almost $1 billion.
(Excerpt) Read more at caffertyfile.blogs.cnn.com ...
It’s GOOD to be a friend of the King.
And it never hurts to have a CEO who is a giant Obama-bot, giving MSNBC free rein to worship the One and all things leftist.
In corporations anything that adds to the cost is labeled overhead and passed on to the ultimate purchaser- the consumer.
Taxes, low or high, are just another overhead item to be passed on to the real payers- people who buy their product.
Economics 101.
Praise to the management for their clever ability to avoid an increase in cost
Best regards,
How much did they donate to Obama?
Thats all well and good, but these same corps get BILLIONS in corporate welfare, tax breaks, and other exemptions that the average citizen does not.
Exactly. Sad that so many conservatives do not get this very basic concept.
Shut down the IRS.
Just a thought.
Best regards,
I don’t mind they didn’t pay taxes, but they did get a billion in tax benefit.
More lies by CNN. I love how they call it a negative tax rate and a tax benefit. That is all words to hide the truth. They lost money and thus had a loss. No wonder they did not pay taxes. Corporations only pay taxes when they make a profit, and as the poster above correctly pointed out, the corporations ultimately do not pay taxes, only the consumers of their goods and services pay it in the cost of the product sold.
It’s still a great article on how they saved some overhead, as I haven’t noticed any swooping drop in prices.
Given that companies pass taxes on to the buyer and lower taxes would mean either lower prices or higher profits passed on to the shareholders, just how is “corporate welfare” a bad thing?
The tax benefit is a carryback loss. They paid taxes on prior year income then lost money the following year. If there is no loss carryback provision, we are taxing them on money they don’t have.
Roosevelt hated private enterprise; and kept this nation in a depression many unneeded years.
The current administration thinks the same as FDR and wants full govt control of private industry.
Let's not help them along.
***Corporations do not pay taxes, have never paid taxes and never will pay taxes.
In corporations anything that adds to the cost is labeled overhead and passed on to the ultimate purchaser- the consumer.
Taxes, low or high, are just another overhead item to be passed on to the real payers- people who buy their product.
Economics 101.
Praise to the management for their clever ability to avoid an increase in cost
Best regards, ***
I agree. That is how I’ve always felt about corporate taxes, they just pass it along and they still receive their big paychecks and bonuses.
I cant believe that those words come from a CNN source. Some poor copy editor probably got a chewing out over that slip of the lip.
Corporations never pay any income taxes! They consider that an expense that is passed onto the consumer by including it in the price at each stage of production!
Why not?
No business ever paid a tax!
They only collect and forward them.
Good job Ray. It’s too bad our media doesn’t understand these basic issues, and put forth news stories that get the masses all frothed up over nothing.
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