I Paid 14 Percent to the IRS; GE Paid Negative 25 Percent

What’s up with that? Yesterday I filed my 2010 income tax and paid about 14% of my gross income to Uncle Sam. General Electric, whose earnings were slightly higher than mine, got a $3.2 billion tax benefit.  Yes, their rate was -25%. Corporations don’t you love them? Well, the Right-wing loves them and will defend their tactics to their death! GE reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Yet they claimed a $3.2 billion benefit FROM the Treasury, not TO the Treasury, The New York Times reported.

Here I am, retired with no salary increase, paying taxes to the Treasury while GE reaches into the Treasury to take money- perhaps mine!

Right-wingers mindlessly [or is that mind-controlled by AM radio] carp and moan, saying that current corporate tax level is so high it hobbles corporations in competing with foreign rivals. Even as the government faces a mounting budget deficit, the right-wing and GOP in general in Washington promise lower rates. There was a prime example of this fact yesterday on this blog when a right-winger carped about ‘those high rates causing corporations to move out of the U.S.’  Of course, nothing could be further from the truth. The Times said,

Such strategies, as well as changes in tax laws that encouraged some businesses and professionals to file as individuals, have pushed down the corporate share of the nation’s tax receipts — from 30 percent of all federal revenue in the mid-1950s to 6.6 percent in 2009.

The problem with such right-wingers is that they seldom think for themselves; rather, they participate in a giant echo chamber. Here’s the truth, backed up by actual data:

Boeing paid a total tax rate of just 4.5 percent. Southwest Airlines paid 6.3 percent. Yahoo paid 7 percent; Prudential Financial, 7.6 percent. These companies paid less than 2 percent: NextEra, Xcel, Carnival and Range Resources.

“That G.E. can almost set its own tax rate shows how very much we need reform,” said Representative Lloyd Doggett, Democrat of Texas, who has proposed closing many corporate tax shelters. “Our tax system should encourage job creation and investment in America and end these tax incentives for exporting jobs and dodging responsibility for the cost of securing our country.”

Yet, the right-wing echo chambers spew the nonsense that is easily absorbed by those who don’t want to know the truth.

Meanwhile in Congress, the morons there are playing the ‘close down the government’ game.  And, after that, they will begin a new game to balance the budget without patching the major, Treasury-draining leak: the open pipeline between the Treasury and the Pentagon.

The Military-Industrial Complex and the greedy Corporations skate while you and I tighten our belts and eat lower on the hog.

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29 thoughts on “I Paid 14 Percent to the IRS; GE Paid Negative 25 Percent

  1. And who is GE throwing money at to get a deal like this?
    They not only were allowed to reach into the treasury muddy, Obama placed one of their CEO’s right into the government!
    Then we need to look at the sweetheart contracts for GE too!

  2. I’m saying that some companies are getting away with murder muddy but, in using reasonable thought you can’t paint them all with the same brush either.
    I’ve done work for corporations that DO pay their taxes while at the same time manage to pay fair wages (even without being unionized) and benefit packages while also dumping a percentage of their profits into the community (probably for tax reasons) and, back to the workers as a productivity incentive.
    In other words, we got a bonus that depended on company profits, quality service, quality product (low downtime), safety (minimum on the job injuries) and, employee sicktime (which pretty much ended employees abusing sicktime benefits).
    Those companies seem to get a raw deal when you lump them into the likes of GE and GM.
    Think on that.
    A non union workplace that you pay 8% towards your own retirement and the company coughs up the rest, 20% out of pocket toward medical, vision, dental and disability insurance beneifits, and a bonus of up to $12,000 annually if you do your job and, don’t abuse the sick time benefits.
    Hardly a company worthy of scorn. And hardly a company “bleeding it’s workers dry”.
    How about those unions that bleed the company dry? When times are good, they demand more…and get it!
    When times are lean, they refuse to budge and see the benefits from those good times as just an expectation they refuse to give up.

    When the auto industry was booming here, the UAW grabbed every penny it could…times have changed and their demands are the same as if the boom was still going.
    Even Lee Iacocca was able to convince the UAW to bend with the times and save Chrysler and, thousands of jobs…while today’s UAW feels that throwing 20,000 people under a bus to keep all they can reap (while passing the blame) is more important than seeing their lower ranking members still employed.

    If times were bad where I work and, the option was to pay $15 towards MY OWN insurance to keep 10,000 people employed, I’d opt for the co-pay to keep them employed.
    1. because it’s the right thing to do.
    2. because if those folks are gone, I have to do their work while taking the cut while getting paid at the same rate I was for just doing my own work!
    When times are good, bargaining for a nice salary is easy in most cases.
    When things go south, biting the hand that has fed you is just a recipe for failure.

  3. If times were bad where I work and, the option was to pay $15 towards MY OWN insurance to keep 10,000 people employed, I’d opt for the co-pay to keep them employed.
    1. because it’s the right thing to do.
    2. because if those folks are gone, I have to do their work while taking the cut while getting paid at the same rate I was for just doing my own work!
    When times are good, bargaining for a nice salary is easy in most cases.
    When things go south, biting the hand that has fed you is just a recipe for failure.

    Sepp, what you wrote would have almost made sense if it was factually based.

    You paying 15 bucks towards your own insurance has absolutely nothing to do with the criisis in the medical industry. How much do you pay a month towards your own medical coverage now? I live in freakin France and I pay 15 bucks a month to upgrade my medical coverage.

    The UAW negotiated the wages that created the middle class, the middle class created the buying power that fueled the American economy. You have as usual totally lost the point here in your slavering syncophantic desire to please you corporate masters.

    The unions will always be necessary to stand up and present a unified counter force to the over whelming greed of the corporations. It’s not capitalism versus Socialism, that’s simplified rhetoric. If you are going to over simplify your arguments, then lets go all the way, it’s human rights and the right to a fare and just wage versus the natural human urge of utter greed.

    If it weren’t for unions and the struggle fought for your basic employment rights, you’e be living in groat clusters and gruel now and being thankful for the crumbs that got swept off the table, or a member of the enforcement squad…..they get hamburgers….

    1. Actually Microdot it IS factually based.

      The UAW “created the middle class”? They’re also assisting in it’s demise now. They created the middle class when times were good and foreign competition was scarce.
      Guess what? This isn’t 1955 anymore!
      If you’re building the best product in the world today, you have to compete with those countries who’s goals are the same now.
      If the U.S version is over priced, the Korean version will sell like hotcakes.
      The UAW has done a masterfull job at pricing itsself out of competition and simply relies on patriotism and, nostalgia in order to get buyers of it’s products.
      The Japs and, the Koreans are kicking the UAW’s ass in delivering a cheaper product that lasts longer, is more reliable and, has a waranty to back it up…AND, the Koreans and the Japanese have a middle class too.

      When “the greedy corporation” is paying you an upper middle class living, trying to extort the company for it’s last dollar is job suicide.
      Ever consider what those “greedy corps” cough up for reaserch, development, comsumer trends research, electricity, tooling, meeting safety standards, blue collar salary, electricity to run the plants, gas to heat them, government regulation compliance, security, stock dividends health benefits and retirement benefits?

      Take a look into your hometown Detroit Edison. In order to apply for a permit to build a new reactor, they had to spend $65 MILLION on the paperwork alone, then there was the $50 million for mandated soil analysys, wells dug to monitor groundwater, holding public hearings, PR crap, mass mailings, a security plan, meetings for designs, purchase agreements with GE and Hitachi, contracts with the local unions and it goes on and on…over 100 million dollars spent BEFORE a shovel can even break ground, 1 watt is even produced and, they can still be told “NO”.
      Meanwhile, they still have to pay all the other expenses and, are forbidden from raising their rates to make up for it!
      Pretty fucking “greedy” isn’t it?

      BTW, the projected number of jobs for the construction of Edison’s planned reactor is in the ballpark of 9000 workers earning an average salary of $28 per hour plus overtime for the next 12 years during construction and then, another 2500 career jobs for the life of the reactor which will average $65,000 a year in wages!

      Greedy indeed. The only one taking a risk is Edison to the tune of half a billion in unrecoverable losses.

  4. By the way, the post was not about the thousands of little businesses in America which are bound by the tax laws and pay their share…Re read the post, the focus is about the huge corporations who have legions of lawyers and lobbyists who enable them to exist with out paying any taxes! It is not the unions, or health benefits which enable GE to not pay taxes, can you agree at least to that with out going off on a trollish rant about Unions?

  5. Sepp writes, I’m saying that some companies are getting away with murder muddy but…

    BUT.

    But then you go on to chastize union workers.

    Patheitc. You seem to be a one-act show, Sepp, and frankly, it’s getting tedious to read your anti-union shit day after day.

    Please write a comment on the topic of job-loss and tax inequity where you do NOT drag in unions to the discussion.

    1. Ok muddy, so lets just pretend for 1 minute that the unions played ball with the state, took the $15 insurance co pays and, had the employees contribute the measly 8% toward their own retirement program and saved 10,000 other state employees from the unemployment rosters.

      WHO would end up the loser in that?
      The taxpayer?
      The employees who still have good paying jobs?
      The state economy?
      Or, the Unions?

      The unions of course…NOT the members of the unions but, the unions themselves!
      The biggest bitch from the unions is the idea that the employees will now be given a choice to join or, not! State employment will no longer have the REQUIREMENT of union membership!

      So be honest with yourself and ask why the unions are so against the idea? And then ask why those same unions are willing to toss some members under a bus in order to keep their little monopoly on state worker’s dues!

      The entire “we’re saving working families” arguement goes to pot when the union is willing to shit on quite a few of them in order to keep the money flowing in and it becomes a self-preservation issue for the union leaders.
      And, how “fair” is it for a worker to be required to join a union as a condition of employment?

  6. The middle class and poor face tremendous unneeded stress in today’s economy because the wealthy and corporations are so very piggish. The upper 1% are responsible for our deficit—NOT the lower 99%!

    1. No Jack, the clowns you keep putting in office are responsible for the deficit.
      The 1% aren’t the ones who are spending the treasury dry to be reelected by you.
      As a matter of fact, the top 1% of the “piggish rich” as you call them employ more people than ANY democrat politician ever has!

  7. You know, Jack, it’s so sad that people like Sepp root for corporations and the upper 1% while dissing the middle class as ‘deserving’ of their plight in life. It is truly amazing and sad!

    1. Personally,, Sepp (and Cal) has more than demonstrated that he needs to be blocked. But, it’s your blog.

      Jack is correct, the wealthy 1% are making sure that the rest of the people are seeing a drop in the standard of living.

      1. Congressman Paul Ryan’s “budget” proposal came out today and, surprise, surprise, it contains only cuts, and no increases in taxes [for the upper 1%].

        Elephant-in-room syndrome.

      2. The problem is there are only a two ways to properly reduce a deficit: lower taxes or cut expenditures. Well, you can also sell off government assets to raise funds in the short term.

        Indeed elephant in room syndrome.

      3. Sorry I’m not a rubber stamp for your bad ideas Laci!
        Blocking me won’t change the truth.

  8. M_R, Imelt, the Chairman of GE ougth to resign. If not, Obama needs to fire him immediately. If not, Obama is agreeing with GE’s position and corporations in general. You know, M_R, I am beginning to wonder if we have a “pig in a poke” here?

  9. My friends, half of the total taxpaying group pay no taxes. Many do not even attempt to. They just don’t pay! Why do they get away with it? Because Congress and the President will not hire half again as many IRS agents to track these people down and have them pay the BILLIONS they owe in taxes.
    Do you understand? Half of taxpaying public, individuals and corporations, pay NO taxes. And, this is not due to loopholes or legitimate IRS code deductions. It is simple non-paying of taxes due……

    1. So, we have a vicious circle. The Pols won’t pay for tax collectors, which means tax cheats get away with it.

      Amusing by not willing to foot for the services, the US does not collect the revenue!

      It answers sepp’s question of what does government do for the money?

      Sad.

  10. We always hear how small business is the meat and potatoes of America. We small business people have to pay those tax fees that the big corporations can afford to get around….making it difficult to keep creating jobs for Americans in the meat and potatoes part of the pie….hence the monetary growth keeps at the upper rungs of the ladder. We small business folks are the middle class getting squeezed on harder by the big boys above and their powers to pay for tax loopholes. We small business owners aren’t union involved, we’re just trying to make a nice living.

    1. Read my reply to Microdot as to what Detroit Edison (one of those big corps who “get over all the time”) had to pay for paperwork alone.

      Many of the “tax loopholes” that those bigger companies get are exemptions for real estate taxes and other perks.

      Know why? Because, cities and states are competing to keep those big businesses that pay nice wages in their towns and employing people who will be taxed and spend money into the local economies.

      Jeep in Toledo is a fine example. The city of Toledo has handed Jeep millions in tax offsets and, used emminent domain to kick citizens off their own properties to cater to Jeep.

      Why? Because, those Jeep employees make on average 70k per year minimum which is all taxed and, the rest is spent in the local economy and, nailed with sales taxes too.
      Jeep gets a “free ride” while paying no taxes but, employs enough people to more than make up for the loss via payroll taxes, sales tax and, almost every dime from every worker flowing into the local businesses…who also pay taxes, employ people who pay taxes and spend THEIR checks into the local economy.

      Tax those “greedy” corporations and, they’ll either find a locality with a lower tax and go there or, they’ll incorporate in Virgin Islands.

      So, tell me Midwestgirl, did you start your own business to make money or, to be a government charity?
      Everyone I know who has started a business did it to make money.

      1. Sepp asks, So, tell me Midwestgirl, did you start your own business to make money or, to be a government charity?

        Rather odd multiple choice question, isn’t it Sepp? As if there are these two answers to your question.

        What’s the point of this, anyway? Midwest girl laid it out quite nicely and easily. What part of what she said went over your head?

      2. Sepp keeps talking about the Democrats as being the party of the non-worker. The Republicans are the ones who penalise the small business person.

        Republicans come right out and tell you they are going to put the screws to you. The Dems pussyfoot around, like Bill Clinton’s “I feel your pain,” which he thought softened the discomfort when he put the knife in our back with NAFTA, GATT, deregulating Wall Street, consolidating corporate media and his other favorite tricks on behalf of the ruling Forces of Greed.

        Or President Obama’s “peace” plan to increase Pentagon spending, together with the size and numbers of wars. Or his “jobs” program of sending boatloads of money to Wall Street for record bonuses and profits, as the masses lose their homes and jobs from the bankster scams. Or Obama’s “health care,” which forces the public to pay more in tax dollars for multimillion dollar “health care” corporate executive paychecks and billions in profit to the descendants of robber barons, for denying health care rather than for providing it.

        And, don’t make the laughable suggestion about the tea party either, Sepp, since they are the ones who are fucking over the American public.

        The Ryan plan is to get rid of Medicare and in place of it give seniors a voucher to buy health care insurance from private insurers. Now, what if you can’t buy as much as insurance or as much care as you need? Well, start saving now or just too bad.

        Now, by any reasonable standard, that’s getting rid of Medicare. Abolishing Medicare. Phasing it out. Whatever you want to call it. Medicare is this single payer program that guarantees seniors health care. Ryan’s plan pushes seniors into the private markets and give them a voucher. That’s called getting rid of the program. There’s simply no ifs or caveats about. That’s not cuts or slowing of the growth. That’s abolishing the whole program. Saying anything else is a lie.

        Of course, you like the freedom to work 66 hours.

        The faster you work yourself to death, sepp, the happier I’ll be.,

  11. “And, don’t make the laughable suggestion about the tea party either, Sepp, since they are the ones who are fucking over the American public.”

    For an ass who’s ONLY clue to what those tea folks stand for comes from lefty sites, I’ll give you a pass on that moronic statement!
    Read it on a lefty site…repeat it as gospel…great work!

    So, why don’t you explain how those folks are “fucking over America”?
    Then explain how the government’s taking on of ever increasing debts is NOT “fucking over America”?

    Lol! Yeah Laci, those crayzeee people who want the government to live within it’s means and not turn the economy into a third world mess are certainly the “dangerous” types aren’t they?

    “The faster you work yourself to death, sepp, the happier I’ll be.”

    I’m betting that if the government runs out of freebies, you’ll starve to death before you’ll see me worked to death!

    When you’re begging on a street corner, watch for me! I’ll be the guy laughing as I toss a dollar into your hat…on my way to work!

    1. Let’s see, sepp, how about that the tea party is working to cut taxes.

      Likewise, you are ignorant as to how much Corporate welfare is bankrupting the US.
      http://www.usuncut.org/

      I seriously doubt you would be tossing me a dollar, Sepp, since if the economy gets that bad, you will be using them as toilet paper.

      Anyway, since you are a total dumbfuck, sepp, yu may want to check out my latest post here to clue you in.

      But, I’m sure you will be too fucking stupid to understand the videos.

    2. Of course, sepp, yu want to believe that you will still have money. But I know full well that your US dollars will be the equivalent of Yugoslavian Hyperinflated Dinars if the Tea Party has its way.

      Remember those, sepp, or is that more of the bullshit you spout here that you were in that part of the world?

  12. BTW, Sepp, you want to know why the Tea Party isn’t popular?

    It’s because they have arrogant fuckwits like you as their spokespeople. You alienate pretty much everyone who does work for a living and is seeing their standard of living drop.

    You’re happy as a clam to be working 62 hours so you can claim that you are debt free. But that’s an impossibility given the Fractional reserve banking system that the economy is based upon.

    Do you really think that you aren’t going to be effected if the US government tanks? Are you really that much of a shit for brains?

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