The “GE pays no taxes” mantra is rock-bottom brain-dead stupid, fit only for those who don’t understand the first thing about corporate taxes.
Let’s see if we can make some headway on this:
Rule #1: If you make profits, you pay taxes.
Rule #2: If you do not make profits, you do not pay taxes.
Rule #3: Corporations are allowed to carry forward losses for several years. That way, their tax payments reflect their mean (average) net profits rather than their peak net profits.
That should be simple enough. Now, let’s get a bit more complicated, this one from an article in Forbes:
So how to make sense of GE’s taxes? The outcry seems to focus on the $5 billion in profits GE made in the U.S. Now if GE were to pay the 35% statutory federal corporate tax rate on that, it would come to $1.75 billion. Yet, as the Times trumpeted, GE has recorded a $3.25 billion tax benefit for the year on its U.S. operations. It’s important to understand that this “benefit” is not a refund (which is why the Associated Press should be doubly embarrassed for being fooled Wednesday by a bogus GE press release concocted by the Yes Men that said the conglomerate intended to return its $3.2 billion tax “refund” to the U.S. Treasury). It just represents an amount GE will balance out against other tax obligations.
But why does GE get this benefit? Simple: its finance arm, GE Capital, lost a lot of money during the financial meltdown (roughly $30 billion) and it’s still carrying those losses forward and deducting them from current income. As GE spokesman Gary Sheffer wrote in his response to the Times story: “Without these financial crisis losses at GE Capital, GE’s tax rate would have been near the average of other multinational corporations.” He added, “In short, when you lose money, you don’t pay taxes.”
There. Does that clear up some things? If not, I suggest you take classes in corporate finance or accounting.
High Time for the Fair Tax: Keep Your Entire Paycheck!
– Everyone Pays His or Her Fair Share
– Pay Tax Only on What You Spend
– The IRS is No Longer Necessary
Before we examine what is meant by “Fair Tax,” let’s first take a look at why it’s necessary, as well as how it would greatly benefit our nation:
Acording to National Taxpayer Advocate Nina Olsen, “The U.S. Tax System’s most serious problem is the 4-million-word code’s excessive complexity that makes it tough for taxpayers to comply with and difficult for the government to administer.” – Source.
The cost to both individuals and corporations is immense: $168 Billion in 2010. Most individuals aren’t equipped to handle it, and many opt out, falling off the grid, or worse, winding up behind bars. Corporations divert a large chunk of their profits to minimize their tax liability, even to the point of reorganizing themselves around the tax code instead of focusing on productivity.
Our tax code has grown way beyond a leash or muzzle. It’s become a ball and chain, so much so that most corporations have expanded operations into other countries simply because it’s far cheaper. Those countries benefit, while Americans lose.
Taxes are are necessary to pay for services common to the community as a whole. When the burden of taxes becomes too great, however, they are a disservice to the community as a whole. Then the act of merely calculating the right amount of tax becomes so complicated that it costs a significant portion of a corporation’s or individual net income, the system is broken. It has become a “parasitic expense,” one that doesn’t contribute anything towards increasing productivity or revenue, or even the welfare of the community as a whole, but instead merely sucks the life blood out of human effort.
Our Constitution mentions the word “tax” six times, four of which are relevant to the Fair Tax concept:
- “Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers…” – Article I, Section 2
- “The Congress shall have Power To lay and collect Taxes, Duties, Imposts, and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States…” – Article I, Section 8
- “No Capitation, or other direct Tax shall be laid, unless in Proportion to the Census or enumeration herein before directed to be taken.” – Article I, Section 9
- “No Tax or Duty shall be laid on Articles exported from any State.” – Article I, Section 9.
If you thoroughly examine each provision in the Constitution against what is happening today, you’ll see that personal income tax is NOT Constitutional, regardless of how the Supreme Court twisted their ruling to make it sound otherwise.
If you examine how much people and corporations are actually taxes (net effective), you see there’s plenty of room for the Fair Tax to replace all other taxes and provide the same measure of income to the federal government.
If you consider the cost of implementing the current tax code, you’ll find that the IRS budget of $11.8 billion alone is a mere drop in the bucket compared to how much money people and businesses spend on handing taxes. When you realize the entire tax industry is parasitic, that is, it doesn’t actually generate wealth at all, but merely shifts it one segment of society to the other, you’ll realize it isn’t healthy at all. It boils down to a protection racket. Pay tax people to keep you out of trouble, when the real issue involves such a grossly over-complicated tax code in the first place.
If you examine the federal budget for other parasitic, non-wealth-building waste, you’ll find at least one third of the federal government’s $3.504 trillion is parasitic in nature. That is, it does little, and adds nothing to the overall health or wealth of our nation.
If we ever did implement the Fair Tax, a mandatory cap would be required. That’s necessary, given the Congressional tendency to add “just another half a percent…” Well, that’s 10% in 20 years, so how about a big fat NO and a max at 10%. If they can’t make do with 10%, they’re not doing their job. Fire them and give someone else a chance.
We the People of the United States of America have serious grievances against Barack Hussein Obama. These grievances range from his own self-admitted ineligibility for the office of the Presidency to the many high crimes (felonies) and misdemeanors he and those he has appointed have committed while in office, most of which are grossly un-Constitutional, and several of which have directly or indirectly resulted in the unlawful deaths of Americans both at home and abroad.
This letter requires action from all of us. A fellow patriot put this letter together for all of us to distribute on our blogs,Facebook walls, e-mail and mailing lists, and to send to your elected representatives at both the State and Federal levels via e-mail, fax or snail mail. Tweet a link to this page, along with terms such as “Obama impeachment.” Forward it to your local and national news agencies, demanding they cover the story.
Together we can make a difference. So lets get it done!
To Whom It May Concern:
We The People find ourselves in a very uncomfortable place and we look to you as the representatives of our country for the answers we seek. Please know that there are many millions who share these feelings, and if the elections had been conducted in a fair and non-fraudulent manner, the results would have reflected our concerns. Below, you will find a collaborative list of questions, and we would greatly appreciate receiving your answers in a timely manner. We will make our decisions accordingly, as this is still the land of the free, and our country’s future is at stake.
Why with wide-spread voter fraud, can this election not be contested? Why are we bound to an agreement reached in 1981?
Why were security teams actually removed in the months and weeks leading up to 9/11 when the violence was escalating and the people on the ground said more was needed?
We can prove Obama had knowledge of the attack, as well as the resources to send for protection but he still denied vital help. These are impeachable offenses. What is your stance on this? Do you agree that this President needs to be impeached? What are you doing about Benghazi?
There is so much that is being enacted behind closed doors. We request that there be no more secrets. We should be able to know the stipulations in their entirety and We the People should be able to vote on it. We need the specifics. The doctors have no idea how they will be paid/reimbursed after January. The hospitals are flying blind, unsure of what they will be fined for. It is hard to run a business, as many know, without a business plan. Do the States have the right to reject Obamacare? We need specifics about ALL taxes we will incur, including 1% on every banking transaction on all bank accounts. We also require specifics on the Over 70 Group.
Concerning our Military:
How do you feel about Obama firing 20,000 Marines so he can give $6 billion U.S. taxpayer dollars to Muslims for ‘green’ energy’? What accountability does this President have? How about the debt ceiling? Raising it will give this Administration more funds to waste on our demise. Is the House going to hold true to their promises?
The FCC is directed by five commissioners who are appointed by the President of the United States and confirmed by the U.S. Senate. This is a serious problem, as you know. Do states have the right to secede, as Texas is in process of attempting to do now?
Finally, we have condensed the list of grievances down to those we feel are most important and would like answers to the following, as to what is being DONE to remedy these atrocities in our country.
Dept. Of Interior, Green Energy Fraud…. what is being done here?
Fast and Furious- what is being done about this? Gun running?
Seal Team 6 shot down
College transcripts of Barack Hussein Obama
Record number of Generals, Admirals retired.
Give-away of Alaska lands to Russia
Retirement of 20,0000 marines
Give away of drilling rights in the Gulf
Muslim Brotherhood infiltration into the White House
Hamas training bases on the border
Surrender of sovereign lands in Arizona to drug Cartels
Drone attacks on American Citizens, arrests of our troops on the battlefield for taking out targets of opportunity to appease host Muslim nations…. and the lies about Libya during the NATO operation…
Why do we have a Taliban lawyer in the Justice Dept?
NDAA, and the UN making decisions AGAINST the U.S. Constitution, most notably with the NDAA’s “indefinite detention of U.S. citizens” in violation of Constitutionally-mandated due process of law and the U.N.’s Gun Ban Treaty, a direct violation of our 2nd Amendment rights.
The use of the Foreign Desk to buy our own debt to generate fees for Goldman Sachs.
What is the status of this process? Why has Congress refused to bring charges against the criminal currently sitting in the White House? Why would we let anyone like Obama get away with committing such a large number of high crimes and misdemeanors, most notably of which was his lying about his country of birth, a fact which he later admitted, in public: “First of all, it’s true, I’m not an American. I was not born in Hawaii. I was not born in the United States of America. I come from Kenya.” – President Barack Hussein Obama, shortly after he was elected in 2008 (short link: http://youtu.be/edyJ4oS8kz0). This self-admitted fact alone is a gross violation of the Constitutionally-mandated requirement to be President of the United States of America and grounds for immediate removal from office: “No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President…” – Article II, Section 1.
I realize this is a lengthy list. However, it does not even cover an eighth of our concerns, and was difficult to condense. This will be widely publicized, along with your response.
The American people need and deserve answers, and we would appreciate you taking the time to give them to us. We ask, however, that your responses be clear and concise, and that you spare us from a long drawn out diatribe that has little to do with the questions being asked, as we will take that as you do not think we are important enough to take seriously, and act accordingly with our support!
By the way, Speaker Boehner, having your flunkies hang up on me mid-sentence when I called your office to ask you or your staff just one of these questions is totally unacceptable.
Thank you for your time and attention to this urgent matter! We believe that you take these issues as seriously as we do, and for that, you have our deep respect and heartfelt gratitude.
The American People