Sunday, April 3, 2011


General Electric, the nation's largest corporation, has a "giant tax department" and employs former IRS and Treasury Department officials and former members of Congressional tax-writing committees. Of course, these "employees" have knowledge on many levels and very powerful political connections. Then you add to this mix, millions of dollars for "lobbying," and what do you have? Tax loopholes to G.E.'s advantage.(1)

Since 2002, G.E. has eliminated a fifth of its U.S. workforce and moved the jobs overseas. During that time, G.E.'s offshore profits have risen from $15 billion to $92 billion, with no tax paid on funds kept "offshore."(2)

In 2010, G.E. made $14.2 billion in world-wide profits, but its tax bill was zero. In fact, G.E. claimed $3.2 billion in tax credits, which leaves the average American worker to shoulder the nation's tax burden.(3)

With Wall Street's shenanigans and high U.S. unemployment over the last two years, Americans have lost jobs, homes, savings and sometimes their lives.

When a U.S. citizen purchases items in Target, Walmart, Hobby Lobby or any large U.S. corporate chain, over 90% of the goods are manufactured abroad, usually in Asia or the Middle East, occasionally in South America or Africa.

These manufactured goods are then shipped to the U.S., at an enormous environmental cost, and priced to undercut goods manufactured in the U.S. A hefty carbon tax on products manufactured abroad would help the environment, level the economic playing field and increase U.S.employment.

Eliminating tax loopholes for corporations, would enormously increase Federal tax revenues and fund education and other social services.

G.E. employs "former" political insiders of the IRS, Treasury Department and Congressional tax-writing committees and stacks the deck in its and other corporations favor. Then, you add millions in "lobbying." It sounds like graft to me.

Notes 1-3: New York Times, 3/25/11, A-1,A17.