G.E.’s Strategies Let It Avoid Taxes Altogether

SheWolf · Mar 25, 2011

washunut said:
You should think of another career. I do not say this with malise. But if you do not feel it is right for you to do everything legally in your power to help him/her reduce their tax burden then move to another part of accounting. No matter what you do in business you are paid to be their advocate. That does not mean do something illegal or somethink that seems wrong ( in your example if the deductions you are taking you think are phony you should ask for some sort of backup).

Maybe it is good you feel this way right out of school. People change careers all the time. Do something you love to do and you will be great at it. If you feel slimy at the end of the day, hard to put in the passion needed.

I do reduce their tax burden... I have no problem with reducing their tax burden, even if it's to zero. However, there a difference between reducing their burden and getting them thousands of dollars back in refunds. It doesn't seem right when I have so many people coming in, and getting back huge refunds whilst not paying taxes. Once you see that over and over again, it just doesn't seem right given the budget issues our country is in. Why is the federal government giving so many people money, and so much money?

I'd feel different if they were breaking even or maybe getting a few hundred back, instead of thousands. Then you have this company... their refund was over 3 Mill. That is messed up! The federal government paid out 3.2 mill to GE. I could go on and on with stories from my job... like I had one business owner get upset, because his refund was only 1,000 and he thought he'd get more because people "on welfare" get 6,000 to 8,000. That's true that lower income people (not welfare, cause they don't qualify for EIC) can get a lot back. I have seen some of them get 10,000 refunds!

My coworker said he feels the same way I do... but I think I might like financial accounting better. Once I pass the exam, I'll give it more thought...

Thanks for the advise.

Temporal · Mar 25, 2011

PeteEU said:
http://www.nytimes.com/2011/03/25/business/economy/25tax.html?_r=1&hp

And people why the US is going down the hole with a tax system that actually PAYS its biggest corporation 3.2 billion dollars a year despite having 14.2 billion in profits.

The top 10 companies in the U.S. pay little or no taxes.

The tax code was written by them, for them.

People complain about it being unfair that the rich get taxed. They are only getting taxed on PAPER, in reality they are getting refunds just like everyone else.

washunut · Mar 25, 2011

SheWolf said:
I do reduce their tax burden... I have no problem with reducing their tax burden, even if it's to zero. However, there a difference between reducing their burden and getting them thousands of dollars back in refunds. It doesn't seem right when I have so many people coming in, and getting back huge refunds whilst not paying taxes. Once you see that over and over again, it just doesn't seem right given the budget issues our country is in. Why is the federal government giving so many people money, and so much money?

I'd feel different if they were breaking even or maybe getting a few hundred back, instead of thousands. Then you have this company... their refund was over 3 Mill. That is messed up! The federal government paid out 3.2 mill to GE. I could go on and on with stories from my job... like I had one business owner get upset, because his refund was only 1,000 and he thought he'd get more because people "on welfare" get 6,000 to 8,000. That's true that lower income people (not welfare, cause they don't qualify for EIC) can get a lot back. I have seen some of them get 10,000 refunds!

My coworker said he feels the same way I do... but I think I might like financial accounting better. Once I pass the exam, I'll give it more thought...

Thanks for the advise.

My career was in finance for large corporations and I really enjoyed it.

As far as the returns go, one thing you should be looking at is why are they deducting so much. That could well be the problem. Some people think of it as a forced savings. But they are lending the government their money at zero interest. As part of the work you do on the returns you may want to ask if their deductions are pretty standard annually, if so how did they come up with how much they deducted. This is a pretty common error people make.

The Barbarian · Mar 25, 2011

Our tax system is just a screwed up mess, and no amount of complaining will help, it's not just corporations or rich people, it's everyone. Who here hasn't cheated or taken advantage of the tax laws? While the rich and the corporations get all the headlines, consider this, what is the tab of the 80 or 90 million people that get an extra $200. or $300 dollars back every year from using the system.

What this country needs to do, is to change our tax system, I have seen some suggest the flat tax which would be better then what we have. The one I like even better is the consumption tax. The main reason I like it better is because we would still be getting the tax dollars from the billions of dollars made illegally in this country.

I could see a drastically reduced tax rate, and a lot more money going into government coffers

apdst · Mar 25, 2011

PeteEU said:
This thread is not about a partisan issue. US corporations pay very little if at all taxes but this is just the worst example I have seen and the tax code has not really been changed much for decades. I read another article that stated that while the US corporate tax rate is 35%, most companies pay less than 25% and some like GE nothing. Broadcom had an effective tax rate of 1.3% last year I believe. Apple had one of 25%.

The problem is the loopholes companies have gotten put in the tax code over the decades, that allow such unpatriotic behaviour. GE and all companies that do not pay their full 35% in taxes should be nationalised and sold off in my opinion.

That's not true. I'm an American coporation and I pay out the ass.

I wonder how many millions in payroll taxes G.E. paid. I know they didn't skip out of paying those.

My biggest question, is how many of these tax breaks come from GE's production of wind generator equipment. I bet the Libbos won't touch that one.

apdst · Mar 25, 2011

The Barbarian said:
Our tax system is just a screwed up mess, and no amount of complaining will help, it's not just corporations or rich people, it's everyone. Who here hasn't cheated or taken advantage of the tax laws? While the rich and the corporations get all the headlines, consider this, what is the tab of the 80 or 90 million people that get an extra $200. or $300 dollars back every year from using the system.

What this country needs to do, is to change our tax system, I have seen some suggest the flat tax which would be better then what we have. The one I like even better is the consumption tax. The main reason I like it better is because we would still be getting the tax dollars from the billions of dollars made illegally in this country.

I could see a drastically reduced tax rate, and a lot more money going into government coffers

That would be me. Big time!! But, "cheat", is such an ugly word. I prefer to phrase it as, "playing by the rules that the government set up".

apdst · Mar 25, 2011

SheWolf said:
I just graduated college and I work in tax right now. I don't have my cpa yet... This year I have to say, I feel like I am ripping off the IRS every single day. I helped a client/business owner get a 1,000 refund, and they would have owed over 1,000 dollars... I am still working on their return, and they are looking for more deductions and receipts so the refund amount will go up more. I think I can get it over 3,000 easily... and it's a lot of mileage deductions, small receipt items, and depreciation... anything that I can depreciate, small items, furniture, etc.

It's legal, but it doesn't feel right...

I think any decent CPA knows how to do that stuff... Again, I am just a first year tax accountant so I am not that experienced. The tax code is messed up and full of "loopholes."

You're going to have to start a thread showing us how to do that. I never heard of a corporation getting a refund.

j-mac · Mar 25, 2011

PeteEU said:
This thread is not about a partisan issue. US corporations pay very little if at all taxes but this is just the worst example I have seen and the tax code has not really been changed much for decades. I read another article that stated that while the US corporate tax rate is 35%, most companies pay less than 25% and some like GE nothing. Broadcom had an effective tax rate of 1.3% last year I believe. Apple had one of 25%.

The problem is the loopholes companies have gotten put in the tax code over the decades, that allow such unpatriotic behaviour. GE and all companies that do not pay their full 35% in taxes should be nationalised and sold off in my opinion.

Should you really be bitching about what America levy's as a corp. tax rate when your own Spain is lower than ours?

j-mac

StillBallin75 · Mar 25, 2011

digsbe said:
It is wrong that GE is actually paid. Many conservatives in America have had a problem with this. Their CEO is a very corrupt individual. He owns MSNBC and has a very strong relationship with the Obama administration.

The real problem is not with GE, or its CEO. Everything they did was legal. The problem is with the crazy tax code.

j-mac · Mar 25, 2011

StillBallin75 said:
The real problem is not with GE, or its CEO. Everything they did was legal. The problem is with the crazy tax code.

What should the rate be in your opinion?

j-mac

apdst · Mar 25, 2011

j-mac said:
What should the rate be in your opinion?

j-mac

I don't think he's necessarily talking about the corporate tax rate. But, I would love to hear Stillballin's solution.

StillBallin75 · Mar 25, 2011

j-mac said:
What should the rate be in your opinion?

j-mac

The rate? I'm really not sure if it should be higher or lower and I'm no expert, but I don't think that's the big issue here. The problem is the cumbersome tax code that legally allows an entity like GE to not pay any taxes at all. We shouldn't fault the player for playing the game, there's something wrong with the game itself.

StillBallin75 · Mar 25, 2011

apdst said:
I don't think he's necessarily talking about the corporate tax rate. But, I would love to hear Stillballin's solution.

I don't have a real solution beyond what a lot of people are saying: Let's redo and simplify the entire tax code. But I think we can all agree that it's easier said than done. You can't fault a private entity for doing what's in its best interests.

j-mac · Mar 25, 2011

How about a fair, or flat tax....

j-mac

StillBallin75 · Mar 25, 2011

j-mac said:
How about a fair, or flat tax....

j-mac

So J-mac are you referring to a system that purely relies on personal income?

apdst · Mar 25, 2011

StillBallin75 said:
I don't have a real solution beyond what a lot of people are saying: Let's redo and simplify the entire tax code. But I think we can all agree that it's easier said than done.

No doubt, but I hope that it doesn't cause us to jump from the frying pan, into the fire.

Case in point: on another forum, a poster stated that there should be a 25% flat tax for corporations, on the gross revenue. I got a temp ban for simply telling that person how ****ing idiotic she really was.

You can't fault a private entity for doing what's in its best interests.

I sure as hell don't. I do it all the time. I wish Shewolf would share some info on how a corporation can get a tax refund.

StillBallin75 · Mar 25, 2011

apdst said:
No doubt, but I hope that it doesn't cause us to jump from the frying pan, into the fire.

Case in point: on another forum, a poster stated that there should be a 25% flat tax for corporations, on the gross revenue. I got a temp ban for simply telling that person how ****ing idiotic she really was.

I sure as hell don't. I do it all the time. I wish Shewolf would share some info on how a corporation can get a tax refund.

I always make it a point to point out that people like to take out their frustrations on corporations because they are seen as big soulless entities that make billions in profits. But corporations are ultimately made up of individuals. You tax a corporation, the corporation will figure out to somehow push that cost down to its employees, or its customers.

Troubadour · Mar 25, 2011

digsbe said:
It is wrong that GE is actually paid. Many conservatives in America have had a problem with this. Their CEO is a very corrupt individual. He owns MSNBC and has a very strong relationship with the Obama administration.

Stop with the charade. We all know the only reason GE can get away with paying no taxes is that Republicans have filled the corporate tax code with loopholes for decades, and demonize anyone as a "socialist" who proposes reducing or eliminating them. Anyone who tried to do anything about this would be lambasted as trying to "punish productivity." The same old corrupt BS from the people who brought us the Laffer curve and trickle-down economics.

StillBallin75 · Mar 25, 2011

Troubadour said:
Stop with the charade. We all know the only reason GE can get away with paying no taxes is that Republicans have filled the corporate tax code with loopholes for decades, and demonize anyone as a "socialist" who proposes reducing or eliminating them. Anyone who tried to do anything about this would be lambasted as trying to "punish productivity." The same old corrupt BS from the people who brought us the Laffer curve and trickle-down economics.

Not that I disagree with you, but do you have any evidence to back this up, and that it has ONLY been Republicans who have done this?

j-mac · Mar 25, 2011

StillBallin75 said:
So J-mac are you referring to a system that purely relies on personal income?

here you go...

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

The FairTax Act (HR 25, S 13) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.

The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

The FairTax:

Enables workers to keep their entire paychecks
Enables retirees to keep their entire pensions
Refunds in advance the tax on purchases of basic necessities
Allows American products to compete fairly
Brings transparency and accountability to tax policy
Ensures Social Security and Medicare funding
Closes all loopholes and brings fairness to taxation
Abolishes the IRS
We offer a library of information throughout this Web site about the features and benefits of the FairTax plan.

Americans For Fair Taxation:

or

A flat tax (short for flat rate tax) is a tax system with a constant tax rate.[1] A flat tax may also be called a tax in rem ("against the thing"), such as an excise tax on gasoline of three cents per gallon. Usually the term flat tax refers to household income (and sometimes corporate profits) being taxed at one marginal rate, in contrast with progressive or regressive taxes that vary according to parameters such as income or usage levels. Flat taxes offer simplicity in the tax code, which has been reported to increase compliance and decrease administration costs.[2]

Flat tax - Wikipedia, the free encyclopedia

j-mac

apdst · Mar 25, 2011

Troubadour said:
Stop with the charade. We all know the only reason GE can get away with paying no taxes is that Republicans have filled the corporate tax code with loopholes for decades, and demonize anyone as a "socialist" who proposes reducing or eliminating them. Anyone who tried to do anything about this would be lambasted as trying to "punish productivity." The same old corrupt BS from the people who brought us the Laffer curve and trickle-down economics.

I would love to know what those loopholes are, so I can not pay taxes, too.

The Prof · Mar 25, 2011

At his press briefing Friday afternoon, White House press secretary Jay Carney was asked to square Mr. Obama's call for corporate tax reform with his embrace of Immelt. Asked if the story bothered the president, Carney responded that "he is bothered by what I think you're getting at, which is that Americans, I'm sure, who read that story or heard about it are wondering, you know -- you know, how this could be."

Carney was asked why, if the president wants corporate tax reform, he appointed "to the head of the Competitiveness and Jobs Council a person who is now the poster child for abusing the system to get out of paying taxes."

"The jobs and competitiveness council is designed for just that," Carney responded. "And he has brought together a lot of voices on that. And he wants to hear the opinions of every member of that council. And we have said, with regard to questions about other members who have been appointed, that the president obviously doesn't want a council of people who agree with him on every issue; he wants to hear diversity of opinion."

"In the end, the decisions that are made about which policy to pursue on corporate tax reform will be the president's decision and his policy," he added.

Carney said later that Mr. Obama continues to have faith in Immelt to run the council.

White House defends embrace of G.E. CEO despite report company didn't owe taxes in 2010 - Political Hotsheet - CBS News

embarrassed yet?

Amazed · Mar 25, 2011

This only Partisan for the Left, Immelt is an Obama Boy.

PeteEU said:
This thread is not about a partisan issue. US corporations pay very little if at all taxes but this is just the worst example I have seen and the tax code has not really been changed much for decades. I read another article that stated that while the US corporate tax rate is 35%, most companies pay less than 25% and some like GE nothing. Broadcom had an effective tax rate of 1.3% last year I believe. Apple had one of 25%.

The problem is the loopholes companies have gotten put in the tax code over the decades, that allow such unpatriotic behaviour. GE and all companies that do not pay their full 35% in taxes should be nationalised and sold off in my opinion.

The Prof · Mar 25, 2011

nyt, FRONT PAGE today:

The head of [GE's] tax team, Mr. Samuels, met with Representative Charles B. Rangel, then chairman of the Ways and Means Committee, which would decide the fate of the tax break. As he sat with the committee’s staff members outside Mr. Rangel’s office, Mr. Samuels dropped to his knee and pretended to beg for the provision to be extended — a flourish made in jest, he said through a spokeswoman.

That day, Mr. Rangel reversed his opposition to the tax break, according to other Democrats on the committee.

The following month, Mr. Rangel and Mr. Immelt stood together at St. Nicholas Park in Harlem as G.E. announced that its foundation had awarded $30 million to New York City schools, including $11 million to benefit various schools in Mr. Rangel’s district. Joel I. Klein, then the schools chancellor, and Mayor Michael R. Bloomberg, who presided, said it was the largest gift ever to the city’s schools.

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?hp=&pagewanted=all

how much can you take?

Councilman · Mar 25, 2011

Want to balance the budget? Simple we know that people who make the most money pay the majority of taxes but they also create most of the jobs.

A reform of the Tax laws that closed off most of the loop holes for corporations could close the gap between what comes in and what is spent. However it would have to include a new attitude among liberals who believe in punishing hard workers.

We can do this if enough people are given the facts without any spin by someone who is known to be factual without the usual BS.

Tax and spend Liberals are like a druggie who needs a fix and will not listen to reason.

G.E.’s Strategies Let It Avoid Taxes Altogether

SheWolf

Temporal

washunut

The Barbarian

apdst

apdst

apdst

j-mac

StillBallin75

Salty Specialist

j-mac

apdst

StillBallin75

Salty Specialist

StillBallin75

Salty Specialist

j-mac

StillBallin75

Salty Specialist

apdst

StillBallin75

Salty Specialist

Troubadour

StillBallin75

Salty Specialist

j-mac

apdst

The Prof

Amazed

The Prof

Councilman

G.E.’s Strategies Let It Avoid Taxes Altogether

Salty Specialist

Salty Specialist

Salty Specialist

Salty Specialist

Salty Specialist

Salty Specialist

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