GENERAL ELECTRIC MADE $14.2 BILLION PROFIT IN 2010; PAID $0.00 IN TAXES
General Electric (GE) corporation earned $14,200,000,000 in profits in 2010, but for the second year in a row paid absolutely no federal taxes. GE, which was a strong supporter of President Barack Obama’s 2008 presidential campaign, was rewarded when the company’s CEO, Jeffrey Immelt, was hired to join the Obama administration as chairman of the President’s Council on Jobs and Competitiveness.
Immelt knows all about jobs– under his stewardship, GE laid off 21,000 American workers and closed 20 factories. According to ABC News, more than half of the company’s workforce is now located outside of the United States. His selection to head the President’s Council on Jobs and Competitiveness is nothing short of shocking.
President Obama has been an outspoken advocate of corporate tax reform. He believes that companies pay too much. “Simply eliminate loopholes, treat everybody fairly,” he said last month.
GE’s ability to exploit tax loopholes to its advantage is the stuff of legend. As stated, the company earned $14.2 billion in profits last year. Nine billion of that amount was made outside the US, exempting the company from any federal tax liability. GE actually got a $3.2 billion tax benefit, ABC News says.
Perhaps more importantly, GE, the world’s largest industrial corporation, leads all corporations in spending on lobbying Washington for favorable legislation and policies. The company has spent more than $238 million over the last 12 years on lobbying.
GE issued a statement saying the company “pays what it owes under the law and is scrupulous about its compliance with tax obligations in all jurisdictions.” As for President Obama, White House spokesman Jay Carney said Obama is “bothered” that a company could get away with paying no tax. But he wouldn’t discuss GE specifically.
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