Have you ever wondered what if? As we’re bombarded with information it’s too easy to just let things go, especially things that are just plain wrong or against good common sense. It’s ok to be appalled by what may try to pass as acceptable when in reality it is not.
With the power of communication at our finger tips we each have a voice. I highly recommend we all find our voices and call them out, whomever they are. How else will change come about?
Here’s a great example. The people at AFSCME have produced this infographic targeting the taxes that have not been collected from GE in recent years. Whether you agree with their message or not, it’s certainly thought-provoking.
Have you found your voice?
As far as I know, GE folowed the law. Is that fair? If not, change the law. Be careful, because there are unintended consequences in changing the law. It may mean less investment in the U.S. It is similar to Buffet. He pays taxes based on current law, is it fair? Again, change the law, there may be unintended consequences regarding investments. Whether it is GE or billionaires like Buffet, they have choices most of us do not have. They can get around the laws and still pay less. Everytime Congress tries to close a loophole, a bigger one occurs.
I think that’s the point KC. No one is blaming GE or Buffett or even Mitt Romney. The law is skewed to benefit the wealthy. I’m not saying it should be the other way around either, but make it fair.
Let everyone pay their fair share of taxes, period.
Not taxing the rich because they are job creators is just nonsense and frankly, unfair to the 99%.
I think you both make some important points. With regard to the law, I’m sure GE is filing its taxes to the letter of the law. Whether that is in the spirit of the law or morally correct is open to interpretation.
Does tax law need to be changed? Yes. It’s far too comlicated and follows no sensible untuitive logic.
Do taxes favor the rich? Yes. The poor and middle class pay too much of their income in taxes. It’s the soft taxes that irk me the most, like new road tolls. Again, they cost lower income earners proportionately more.
Will investment decline if businesses don’t enjoy the same tax breaks? Probably yes. But long-term business success is not solely based on following tax breaks. Investments have to made in the pursuit of profit.
Corporate income tax alone is not particularly complicated. 1120 returns are some of the easiest returns I do. It gets complex when businesses are bought and sold, and other unusual transactions take place.
What tax breaks do you think they are getting?
Unfortunately, you can’t just look at what a company made in one year, and then say it’s “unfair” that they didn’t pay taxes on it. Our tax code follows a reasonable approach wherein if a company loses $1M one year, and has a profit of $1M the next year, the federal government considers the whole economic horizon and does not tax that company, because really, they made $0 over the last two years. Similarly, GE had losses during the financial crisis years that offset the gains in made in 2010. In addition, some of that income was earned, and taxed, abroad. The US does not make you pay another 30% tax on foreign income when you’ve already paid 30% tax on it to another government. What a burden that would be!
So, I’d say, the law may not be as bad as you think, if you look at a less narrow timeline.
Wow… I’m kind of conflicted, as I have GE stock and have seen a GREAT return on my investment over the last 24 months. That said, I guess the $4 a share I’ve made during that period is chump change compared to how the GE tax bill could help the overall economy – and ultimately, me.
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It is interesting to see what could have been done with the hypothetical taxes collected. If the tax law is changed though corporations will just find a different way to lower or avoid taxes.
Wow. That’s insane! My question is WHY haven’t taxes been fairly collected from GE?
Death and taxes is the saying right? So how come this doesn’t apply to GE? Sadly, GE was following the rules so ultimately it’s on the government for allowing the free ride.
That could have negative consequences. It sounds great on paper but not when you really think about the impact on the economy.
The fair tax plan can cure this problem. Our tax code is insanely manipulated by the law makers who are influenced by the big business lobbyists.
http://www.streetsmartfinance.org/2012/04/07/a-simple-plan-to-skyrocket-your-personal-and-national-economy/
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It’s crazy to see what could have been done with the money if they had the same tax rate as regular people. Thanks for sharing the information, Hunter.