General Electric filed an income tax return for 2010 claiming zero taxes owed. Did I hear that correctly? It is true, and it has a lot of tax reformers fuming.
GE’s CEO affirms that the company abided by proper tax law when compiling its corporate tax return. He pointed to huge loses taken by subsidiary GE Capital as a major factor that allowed for a zero tax bill in 2010.
Boss Jeff Immelt for one assured investors and the public that expected gains in 2011 would be enough to require a substantial tax liability for that year. Immelt also admitted that U.S. tax code is seriously flawed, calling it “old, complex and uncompetitive.” Immelt is one of many chief executives that believe the tax code should undergo a pretty serious overhaul.
GE filed over 7,000 tax returns in 2010. They were filed in various domestic and foreign jurisdictions. Foreign profits totalled $10.8 billion. However, since they claimed a loss of $408 million domestically, they are paying zero tax to the federal government.
As a true American, I understand it is my responsibility to pay my fair share toward the financial obligations of this country. I benefit from living in the best country in the world, which is protected by the best fighting force in the land.
That definition of “my fair share” is certainly up for debate. What tax policy is fair? Is it the fair tax? Is it a flat tax? Is the progressive tax system best?
I certainly do not have all of the answers on tax policy. I can state with great certainty though that tax policy that allows a global giant like GE to post huge global profits yet pay zero tax is indeed fundamentally flawed. When an average Joe must pay higher taxes than a profitable company like GE, there is officially a problem.
For the record, I have no problems with GE and its tax return. GE is a part of my own investment portfolio, and its value has risen 36% since I bought the stock.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
Favorite quote:
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."
Thomas Jefferson
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