GE's 24K page tax turn...

[AZ-Tax]

Watch this video. The ancher guy goes over the 1120 form. At the end he says GE paid $0 Fed income taxes.

http://thelastword.msnbc.msn.com/_news/2011/03/25/6346464-lawrence-rewrites-ges-tax-return

[Matt Sova]

What a tool

Of course this guy works for liberal msnbc. I think a corporation the size of GE is going to have an extremely difficult to prepare, difficult to produce and difficult to understand tax return. Is he really complaining that GE employs over 1000 people to handle all of it's tax situations? Is he REALLY blaming republicans for keeping the IRS understaffed? Really? This toolbag should immediately be removed from the air. He is not a journalist, he is nothing but a liberal blowhard. The fact of the matter is that corporate tax law is complicated, has for a long time been complicated and continues to be complicated no matter WHICH party is in charge.

[jimenright]

It sounded

like a good case for reforming the corporate tax code to me.

[Gary2]

Of course this guy works for liberal msnbc. I think a corporation the size of GE is going to have an extremely difficult to prepare, difficult to produce and difficult to understand tax return. Is he really complaining that GE employs over 1000 people to handle all of it's tax situations? Is he REALLY blaming republicans for keeping the IRS understaffed? Really? This toolbag should immediately be removed from the air. He is not a journalist, he is nothing but a liberal blowhard. The fact of the matter is that corporate tax law is complicated, has for a long time been complicated and continues to be complicated no matter WHICH party is in charge.

Did we see the same video? I don't think the word "republican" was mentioned at all, let alone any blame being assigned.

If there was any politicking at all in that report, it was the small, implied respect for Reagan's 86 tax bill that simplified the tax code. He wasn't accusing GE (an owner of MSNBC) of any wrong-doing. His main points seem to be a) that since 1986, the lobbyists have gotten more corporate tax breaks back into the system; b) that 25 years is too long between major overhauls and simplifications of the corporate tax system; and c) that the share of taxes paid by corporation has fallen dramatically.

[travis bickle]

Absolutely right

Did we see the same video? I don't think the word "republican" was mentioned at all, let alone any blame being assigned.

If there was any politicking at all in that report, it was the small, implied respect for Reagan's 86 tax bill that simplified the tax code. He wasn't accusing GE (an owner of MSNBC) of any wrong-doing. His main points seem to be a) that since 1986, the lobbyists have gotten more corporate tax breaks back into the system; b) that 25 years is too long between major overhauls and simplifications of the corporate tax system; and c) that the share of taxes paid by corporation has fallen dramatically.

Friday's New York Times ran this story on the front page, above the fold (followed up by a full page inside the first section, with charts, graphs, bells and whistles).

Gist of the story ...GE's tax department is staffed by EXTREMELY COMPETENT AND SAVVY individuals from the private sector, former Treasury officials, former members of House and Senate commitees that write tax law... coupled with AGGRESSIVE lobbying for their tax benefits. Does not matter which party is in power.

If I remember aright, GE could actually claim about $3.2 billion credit.

[veritas]

Tax reform act of 1986

"As it has evolved, the company has used, and in some cases pioneered, aggressive strategies to lower its tax bill. In the mid-1980s, President Ronald Reagan overhauled the tax system after learning that GE - a company for which he had once worked as a commercial pitchman - was among dozens of corporations that had used accounting gamesmanship to avoid paying any taxes.

"I didn't realize things had gotten that far out of line," Reagan told the Treasury secretary, Donald T. Regan, according to Regan's 1988 memoir. The president supported a change that closed loopholes and forced GE to pay a far higher effective rate, up to 32.5 percent."

It may be anectodal but my memory recalls Reagan being shocked when hearing his secretary paid more income tax than GE.

[AZ-Tax]

Curious what would you charge for

a 24K page form 1120?

[Snaggletooth]

Hardly Objective

Of course this guy works for liberal msnbc.

Yes, this one was hardly objective. I don't know many corporations are even turning a profit, and even if GE was profitable in 2010, there is always the spectre of loss carryforwards. If there were any of these, the narrator didn't tell us because it didn't fit the agenda of the story.

Another example of "tax simplification of 1986." I was around for that one and the major changes were on personal tax returns, and virtually no corporate changes by comparison. The big change for businesses was the introduction of "passive" losses but even those are enforced at the personal level.

Tax department of 1000 people? I wouldn't be surprised if Sales Tax review for 50 states employ at least 20 people and there are multiples of that number employed for VAT in foreign companies coupled with foreign taxation. My last assignment for a "large" corporation witnessed a tax department of 25 people to keep up with operations in 38 states and no foreign countries.

I am 100% for getting rid of the lobbyists, but there are plenty of special interests paying for this guy's story. No way would I buy a General Electric explanation either, as that would be just as biased. But if we're going to have a presentation of any kind, let's make it fair and concentrate on facts rather than big money agendas.

[Gary2]

Yes, this one was hardly objective. I don't know many corporations are even turning a profit, and even if GE was profitable in 2010, there is always the spectre of loss carryforwards. If there were any of these, the narrator didn't tell us because it didn't fit the agenda of the story.

As near as I can figure, GE has been profitable for at least the last ten years. Their financing unit, GE Capital, took big hits, but I believe the overall bottom line has stayed positive.

[newbie]

Yes, hardly objective, really a shame they can't be "fair and balanced". LOL