Hated Big Corporation, Obama Style

By Semperpapa

Tax time in America. Millions of individuals and small business owners are getting close to the time when the pain of the IRS imposed dictatorial policies will leave its mark once again.

But not everyone is feeling the pain. One particular corporation is celebrating today: General Electric.

The largest corporation in America has had a very good 2010, with a reported total profit of $14.2 Billions. The global company declared that $5.1 of those billions came from its operation in the United States. But the astonishing part is that General Electric received a tax benefit of $3.2 Billions. That is correct! Not only G.E. did not have to pay any taxes to the IRS, but got a tax benefit.

To be fair, General Electric has been successful for years in escaping its tax obligation due to what the NY Times describes as “innovative accounting” practices, which, thanks to the fiscal policies of the federal government, have allowed the company to defer most of its profits to foreign accounts. So I am not concentrating my thoughts just on the current administration.

Moreover, G.E. employs thousands of people worldwide, which is a good thing.

Where I do have a problem with the Obama administration, though, is the hypocrisy. Both candidate and president Obama have been very vocal in condemning the evil corporations, set on intruding in their ability to make their evil profits. But in the case of G.E. it looks like the Obama administration has taken a very different posture. In fact, President Obama even brought Jeffrey Immelt, G.E. Chief Executive Officer, into the government, charging him to lead Council on Jobs and Competitiveness. No kidding!

So the scenario is interesting. The tax department of General Electric is headed by a former Treasury dept. official, John Samuels, and staffed with former Treasury and IRS employees, not to mention the numerous former congressional tax committee members.

And the CEO leading a council on jobs and competitiveness, really a surprise. Sure, Mr. Immelt may have the ability to suggest a more business friendly governmental approach that would be beneficial for the creation of jobs in America, but jobs for large corporations. The reason for large conglomerates support of government regulations is based on the fact that the same regulations impose extraordinary financial burdens on small business operators, effectively eliminating competition.

So happy days for General Electric, as the private sector in America is challenged every day to make it to the next and keep the doors open and employees on the payroll.

Just my thoughts!