The company with the slogan, “We Bring Good Things to Life” – General Electric, had profits of $14.2 billion, yes, that’s with a “B”, and pays zero income tax. Of this amount $5 billion is in the US. Not only that, they are also claiming a $3.2 billion tax benefit.
So how is it done, creative accounting? The profits are declared off-shore and their financial arm, GE Capital, lost billions and is still suffering from the financial crisis.
Sure it is legal. They are using everything in their means to minimize their tax burden. But, you can bet an IRS tax auditor is always looking over their shoulder to make sure they are doing everything correctly.
General Electric isn’t the only company doing this. Others such are Bank of America and Time Warner are taking advantage of prior losses and not paying any taxes.
How does it feel to be paying more taxes than General Electric? I am not sure I like it.