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Discussion in 'Politics, Religion, Social Issues' started by rdowns, Apr 13, 2011.
This is a fake press release that the AP published. How the hell can anyone take this seriously?
That's actually a good start, but it still doesn't address the fact that GE paid no taxes. They're just refunding their rebate, right?
And they're only doing this because of the public shaming they got. Can we go one by one with the richest 1% and get them to pay their taxes this way too? Maybe then we wouldn't need to spend 5 weeks arguing about condoms.
As I suspected...
Too bad. For about one second, I almost had faith in a multi-national corporation.
Well that was fast.
Thank god for journalism.
It's time for big corporations to start paying their share of the taxes. It would go a long way towards solving the current budget problems.
EDIT: or not
Seriously guys? Read my white text in my post.
Why did you hide that part like it was a spoiler for a movie?
It sounded believable to me. I was really impressed with GE for a moment.
Fake press release in order to bring the issue into more awareness?
Why would anyone suspect there was white text in the post?
Ooooohhhh! RIGHT! The WHITE text! Why didn't I think to look at the white text on the white background? I almost always highlight the entire page looking for secret hidden missives.
It's time this forum got spoiler tags.
Now that's a recovery from GE
I guess my point was, like the AP, people don't read much beyond the headline and first paragraph.
How can anyone buy into the statements quoted above?
They shouldn't. They should question the PR and its language.
We maintain an apparently worthless belief that people and corporations are theoretically capable of doing the right thing?
If you don't have some hope it all just gets depressing at some point.
Two people fell for this. Two. It was debunked in the third post (including yours) of this thread.
Or simply not trust anything you say from now on.
It's too bad the people that wrote the press release (and the entire NYT article that originated the GE stuff) don't understand that a deferred tax benefit =/= to a refund. Basically, a deferred tax benefit (or deferred tax asset) is a financial accounting concept - a deferred tax asset results from temporary differences in book (think financial statements) and tax accounting (think what goes on a tax return); if a company deducts something for financial accounting purposes, for instance, certain bad debts, but that deduction is not allowed for tax purposes today (and it will be in the future), a deferred tax asset will result (the company as basically prepaid taxes for financial accounting purposes). It is a concept that allows a company to accurately reflect future taxes - a deferred tax liability also exists.
Sure, GE paid no federal corporate income tax this year, but they did pay taxes - payroll taxes and sale/use taxes (see the argument that is usually brought up when someone says 47% of American's paid no taxes). What GE is doing is perfectly legit and pretty much every multinational does it (including Apple, Dell, Microsoft, Google, Merck, Pfizer, etc.). Personally, I'd be pretty mad if a corporation I was a shareholder in didn't minimize its tax liability to the lowest possible amount within the law and with substantial authority for all its tax positions.
If Americans deplore laws that enable tax avoidance, they should elect politicians that will change those laws - oh, that's right, the majority of politicians love tax avoidance and hire accountants to help them pay the least amount of tax legally required.
I have no interest in researching every article to verify it's actually a true story just because some people may play fun pranks and post fake articles without indicating they are such. And c'mon, so many legitimate articles are written just as poorly that article quality and consistency is a terrible way to evaluate an articles veracity.
I *AM* a shareholder in GE (my worst performing stock in the past two years; and it was given as a gift in childhood, not bought by me). And I still think that avoiding all tax by using loopholes and other such accounting tricks is deplorable. But then again, I'm not the "my money my money my money" type as much. I try to vote for the people I want to change the rules, but somehow, those Republican legislators just keep getting in the way.
What GE is using isn't really a loophole, it is widely popular, has been known about for ages by accountants and congress (hell, I have an entire class that focuses on the subject) and I really doubt that congress didn't know that corporations would keep foreign profits in foreign subs when they enacted the legislation. Some of GE's transfer pricing may be a little bit murkier, but the IRS has the authority to go in and change the pricing GE assigns to its transactions between controlled subs (see IRC section 482) - since the IRS hasn't done that, it is pretty likely GE is following the law in regards to the methods and pricing it uses (I mean, its not like the CEO of GE and Obama are buddy buddy - oh, wait).
Don't blame just the Republicans, congressmen on the left use tax avoidance techniques - John Kerry certainly didn't mind doing it with his yacht, that is, until he was exposed to his colleagues who think paying the minimum tax required by law is somehow morally reprehensible.
Of course members of Congress have all their investments in blind trusts.
Your right that we can't blame the republicans for this problem. It is certainly the fault of almost all of our politicians and the fact that they are undeniably in bed with big business in any number of ways.
-They worked together
-They received campaign donations
-They received free vacations
-They were in the same frat together
And I understand that what GE did was "legal" I still think it was wrong. Of course I doubt much is going to change. Note how little we've herd from congressmen/senators/our president about changing our system so these multi billion dollar corporations dont get off tax free. Its because both parties are beholden to these corporate entities .
Sometimes it feels like the Democrats and Republicans are actually working together. The Democrats as rule fail to accomplish anything truly meaningful or progressive. The Republicans act so insane that they scare all the liberals into constantly voting for Democrats because were so scared of the alternative.
The end result is that the ruling class in both parties seems to do whatever they want and they're are basically zero consequences.
Good post and quite true.
I do think GE should pay taxes, but as a tax accountant, I also understand GE trying to minimize its taxes - there really isn't any reason you should pay more than legally obligated to and GE certainly doesn't. I think the law should be changed so that GE and other corporations pay a proper amount of tax, but until it is, I support what GE does in minimizing its liability.
I no longer vote for either party, I have no faith that either of them will accomplish any meaningful change when it comes to taxes and spending.