Okay Liberals, Explain This...
It Must Be Magic!
Someone needs to do some splaining here huh? Yesterday, while we were munching burgers and fries at Five Guys, the Frog Princess and I were discussing current events and something relevant popped into my mind. I looked across the table and said, "Did you know that General Electric paid no corporate taxes, that's "zero" folks, on their US profits this past year?" A cloud came over her face and with a stern look she asked, "How?" You see, I'm much more of a news junkie than she is. Using the short reply form, "I replied that they were taking advantage of the tax loopholes that allows corporations to move their profits off-shore." I also told her that if the common man tried to do that we might end up doing time in The Big House.
I am hoping that anyone who reads this isn't a member of "The Feelings Preservation Society," a society that my old buddy "The Ground Squirrel" created. There is a chapter or two or three within that particular Society that is rather touchy about any criticism of Smirksalot and usually reverts to the "You lie, you lie" denial mode when it is leveled. I call them the "Adoring, Slobbering Love Affair" mob. If I hurt their feelings, I'm sorry (not really, I'm just funning you).
The first thing you need to understand is the relationship that exists between Smirksalot (Obama) and Jeffrey Immelt, the CEO of General Electric. To say they are tight is an understatement. He's one of the one's who just benefited from an all expense paid (tax payers paid for the trip) vacation to Brazil and various other South American locales with the Smirksalot entourage. He was part of said entourage. One needs to examine the tentacles of the octopus first to fully understand the nature of the beast. The liberal chant is "Tax The Rich, Tax The Rich!" There's more to the story than that. Part of the story can be found here at this video clip link:
The following are "political tentacle" FACTS, not conjecture. You'll find, if you ever bother to read what I write, that I use facts quite frequently. If you doubt any of the facts I use then "Google" it and do the same research I do to obtain them. The use of an occasional link is good, but the use of too many becomes a bit of a distraction.
General Electric was a major campaign contributor to the Obama presidential run so that he could buy a bedroom in The Whine House. The figure is to the tune of $499,130.00. If one bothers to check, one would find that Smirky's campaign contributions from corporations were on the rather hefty side. The liberal crowd needs to understand how that works and examine reality rather than what comes out of the man's mouth. So what does that kind of money buy in The Land Of Smirksalot? Follow along now.
After spending like what seemed forever to shove health care reform down everyone's throats while the economy was burning, the emphasis turned to jobs. Jeffrey Immelt was rewarded in that arena under "The Jobs For Friends Program." He, in effect, has become The Whine House's Job's Czar. Is there a connection there, or am I just imagining things? Obama has given him a seat on his Economic Advisory Board and made him the chair of the newly created Council On Jobs And Competitiveness. These things are done through executive orders which, like all Czar positions, require no Congressional confirmation hearings. In fact, General Electric hasn't fared too well since Jeffrey took the helm, but that is another subject altogether. I just wanted to firmly establish the political connection as we proceed. It is there for all to see.
If one really researches the subject, it is astonishing to see how many of the bailouts we were all howling about have a GE tag on them. Money does buy influence, whether Congressional or Presidential. And Obamaites need to understand that their lily is of the gilded variety. Old Jeffrey and Smirky are as tight as two thieves.
So here's the rub and must surely be the answer to the Princesses question. Let me reiterate that GE is paying "zero" corporate income taxes for this past year. So let me rub another liberal wrong with this statement. Not only are they paying nothing into the coffers, but are receiving tax credits back in the amount of $3.2 billion. This is the second year in a row GE has paid nothing into the US Treasury at tax time. The prior year was because the US operations posted a loss of $408 million while it posted a profit of $10,8 billion on its overseas operations. Something smell fishy here to you by any chance?
This year the stockholders are a little more pleased. General Electric posted a worldwide profit of $14.2 billion, of which it derived a profit of $5.1 billion from US operations. Those are both tidy little sums so with a corporate tax rate of 35%, the second highest rate in the world, how is it this multi-national isn't paying a dime and getting away with it? Isn't that called tax evasion? Don't people go to the slammer for that? Doesn't seem fair, nor legal, does it?
It is legal though and money does buy power and influence. What do you think all those lobbyists are doing in the hallowed halls of Congress every day when they are in session besides drinking and eating up tax payer provided refreshments? Do you think they are making social calls to Smirky at The Whine House just for S & G's? Hardly. They are horse trading. You know the old tit for tat type of thing. You do this for me and I'll do this for you back scratching gig. While Obama says one thing to us, I am certain what is said behind our backs - out of ear shot - is quite different. He is a politician dear reader. Obviously, it isn't just the Republicans who are pro-business up there in Foggy Bottom.
Here's how things really work. In a filing right before the Japanese disaster, the company is in the nuclear reactor business mind you, they reported a tax burden of 7.4% on their US profits but there is a caveat attached to the report. That is "if," and only "if" it trots back any of those profits from overseas to US soil. I don't see that happening, nor should you. Keeping them off-shore, like they do many of the jobs Americans could be holding, effectively allows them to get money back from the US Treasury. Isn't that special?
Over the years GE has spent millions upon millions to curry favor in Washington, spreading the wealth among both political parties to buy its favorable tax position. Did they get a return on their investment. Well, DUH. Do you think that that GE backing Obama on The Cap & Tax proposal was just coincidental? Thank goodness and pass the mashed taters that that economic catastrophe wasn't pounded down our throats too. If you think it coincidental, look at GE's tentacles in the "green" industries. Stinks even more as I go along huh?
Oh it's all perfectly legal and GE's efforts have put them at an advantage over other multi-nationals that do business in the US. So in the future, rather than yell and scream about corporations needing tax hikes in order to milk their coffers, please look closely at who is doing what and who are "buddies" with whom.
Immelt has been appointed as the chair of Smirky's Council on Jobs And Competitiveness. Why don't we just appoint the fox to watch the hen house? Want a hot button? Obama has plans to have that same council "overhaul" the tax system regarding said system and corporations to make US corporations more competitive and bring back more jobs to our shores. In view of GE's record, do you think it very wise that the scoundrel who is now the CEO of General Electric should be sitting where he is that close to the President of the United States? Why not just force them to pay their "fair share?" Because what is being done is all perfectly legal. Yes indeedy do, money does buy influence. And also some of the finer things in life.
If you want your blood pressure to rise, read the in depth article that appeared in the New York Time's (of all newspapers) business section on March 24th. You can find it by putting "GE avoids taxes" in your search engine. The tentacles are much deeper than those I have outlined here but space constraints, being what they are, I will bid you ado. . Something just isn't right in Frog Town these days. Some wise liberal sage out there might make an attempt at explaining all of this on this administration's watch.
Have a nice day.