Daily Entry

I saw this interesting afticle in MSNBC, How G.E. made $5.1 billion in the U.S. tax-free.

"General Electric, the nation’s largest corporation, had a very good year in 2010. The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

....Such strategies, as well as changes in tax laws that encouraged some businesses and professionals to file as individuals, have pushed down the corporate share of the nation’s tax receipts — from 30 percent of all federal revenue in the mid-1950s to 6.6 percent in 2009.

....A review of company filings and Congressional records shows that one of the most striking advantages of General Electric is its ability to lobby for, win and take advantage of tax breaks.

....Since 2002, the company has eliminated a fifth of its work force in the United States while increasing overseas employment. In that time, G.E.’s accumulated offshore profits have risen to $92 billion from $15 billion."

And you wonder why all the tax revenue for the gov't is drying up. The middle class whom a significant percentage are out of jobs can't pay as much taxes as in the good years. And, of course, you have all the people who foreclosed on their houses. You can't collect taxes on that either. With the upper 1% getting tax cuts and the corporations getting tax breaks, no one should be surprised that we're in a financial crunch now. When everyone pays their fair share of taxes, the system works. When they don't, its like the Titanic. Anyone see an iceberg?

jp