Is everyone in the US drunk? GE doesn’t pay taxes?

I know this is not breaking news but I just do not understand why people are not losing their minds over this.

General Electric, the largest corporation in the United States, paid ZERO taxes last year.  In fact, they got a tax credit.

Seriously

‘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.’

My dad is an accountant, and as an accountant, he would probably tip his cap to the accounting squad at G.E. that regularly pulls this off.  They’re only working with the laws/loopholes given to them.  So, why are the loopholes such?

What am I missing here?  Why isn’t everyone losing their minds over this?

Addendum: It appears MoveOn.org must be following me these days as I just got this email talking about this very issue.  Go ahead, check out the time stamp.

In response to Justin in the comments: Charlie is probably drunk, yep.

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2 Responses

  1. see Rangel, Charles

  2. this:

    According to its 2007 regulatory filing, the company saved more than $1 billion in American taxes because of that law in the three years after it was enacted.

    By 2008, however, concern over the growing cost of overseas tax loopholes put G.E. and other corporations on the defensive. With Democrats in control of both houses of Congress, momentum was building to let the active financing exception expire. Mr. Rangel of the Ways and Means Committee indicated that he favored letting it end and directing the new revenue — an estimated $4 billion a year — to other priorities.

    G.E. pushed back. In addition to the $18 million allocated to its in-house lobbying department, the company spent more than $3 million in 2008 on lobbying firms assigned to the task.

    Mr. Rangel dropped his opposition to the tax break. Representative Joseph Crowley, Democrat of New York, said he had helped sway Mr. Rangel by arguing that the tax break would help Citigroup, a major employer in Mr. Crowley’s district.

    G.E. officials say that neither Mr. Samuels nor any lobbyists working on behalf of the company discussed the possibility of a charitable donation with Mr. Rangel. The only contact was made in late 2007, a company spokesman said, when Mr. Immelt called to inform Mr. Rangel that the foundation was giving money to schools in his district.

    But in 2008, when Mr. Rangel was criticized for using Congressional stationery to solicit donations for a City College of New York school being built in his honor, Mr. Rangel said he had appealed to G.E. executives to make the $30 million donation to New York City schools.

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