Monday, March 28, 2011

What Does The Pot Call The Kettle?

If I owned two restaurants, and the one located in San Diego made a profit of $10,000 while the one in Los Angeles operated at a loss of $15,000, one would say that my business had a loss of $5000 for the year and that I owed no taxes. Right?

Well, no. The liberal media would pretend that my Los Angeles restaurant did not exist at all, would report that my San Diego restaurant made $10,000 in profits and would be howling that I paid no taxes because I had an army of tax accountants that allowed me to cheat the government.

General Electric is the nation’s largest corporation, and it owns a vast array of manufacturing companies which made a total profit of some $14 billion in 2009. They also own GE Capital, an investment firm that, like most investment firms in that year, suffered enormous losses. As any corporation would reasonably do, they charged their investment losses off against their manufacturing profits and wound up with a net loss on which they owed no taxes. There is nothing out of the ordinary or in any way suspicious or illegal about any of that.

The media is making much of their profits in manufacturing and the fact that they paid no taxes, claiming that “they write their own tax laws,” that “their 24,000-page tax returns are impossible to audit,” and that circumstances which permit them not to pay taxes on their income are some sort of nefarious plot hatched in cooperation with Republicans.

Lawrence O’Donnell even referenced their statement on his Friday night show that “if it were not for losses incurred by GE Capital” their tax liability would have been 21% of the income realized by their manufacturing operations, and then sailed right past that statement as if he had not even made it and launched into a comedy routine about how easy it is to fill out the five page Form 1120 corporate tax return.

The liberal media continues, of course, to mock and criticize the buffoonery and dishonesty engaged in by the conservative media.

14 comments:

bruce said...

That's what half-truths, deliberate oops selective reporting and innuendo will get you. No wonder politicians are usually lawyers.

Ema Nymton said...

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("The liberal media"?

Who? In USA, where does one find "The liberal media"? Name an example of "The liberal media".)

Get this point in your head, in USA international corporations do _NOT_ pay taxes. It's the Republicant Party way.

It's the Republicant Party way to complain about USA's highest corporate tax rate of 39%, calling for a tax rate cut on corporations, and then give away the treasury to international corporations.

It is called gaming the system, something you seem totally willing to accept.

So are you for or against the reporting of an international corporation not paying taxes in USA?

Ema Nymton
~@:o?
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Jayhawk said...

Did you read the item? Do you know how to read?

Where is the liberal media? I said it in the post; MSNBC, O'Donnell, Maddow and company. They brag about being the liberal media.

Of course corporations don't pay taxes when they lose money. If you lost money on your business would you expect to pay taxes? Again, did you read the peice? I wasn't talking about a lot of corporations, I only spoke of GE - one corporation - which lost money and didn't pay taxes as a result.

Ema Nymton said...

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"Of course corporations don't pay taxes when they lose money. If you lost money on your business would you expect to pay taxes?"

Don't let facts get in your of your sniveling.

General Electric (GE) corporation earned $14,200,000,000 in PROFITS in 2010, but for the second year in a row paid absolutely no federal taxes.

So are you for or against the reporting of a very profitable international corporation not paying taxes in USA?

Ema Nymton
~@:o?
.

Jayhawk said...

Again you demonstrate you inability to read. GE Capital, an investment firm owned by GE lost money in an amount greater than $14.2 billion which offset the $14.2 billion in profits earned by their manufactering oerations (only $5 billion of which was earned in this country) and resulted in taxes not being owed. They did not pay any taxes because they did not owe any taxes.

If a company has two operations under common ownership it is allowed to offset the losses of one against the gains of the other, and when companies lose money they do not pay taxes on their loses because the tax code of the US does not tax negative income.

So how is GE a "very profitable international corporation" when it lost money? Or do you simply believe the lie that GE Capital does not exist because it serves your purpose of demonizing GE?

If I have a restaraunt in San Diego that makes $5000 profit, why should I pay taxes on that $5000 when I also have a restaraunt in Los angeles that lost $10,000? Would you deny me the ability to charge my Los Angeles losses against my San Diego profit and require me to pay taxes on that profit. Or is that just too complicated for you?

Ema Nymton said...

.

It is good to see that you are _FOR_ gaming the system. So why do you snivel, piss and moan, and whine so much about how messed up the system is?

Stay consistent will you?

Ema Nymton
~@:o?
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Jayhawk said...

Well, I will stay as consistently whatever I am as you are consistently idiotic. Not paying taxes when incurring losses in business is "gaming the sysyem." Idiot.

Ema Nymton said...

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Do you always go against your own best self interest (and then complain about getting the shaft)?

Ema Nymton
~@:o?
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Bartender Cabbie said...

I am sorry you are saddled with Ema. I got her from somebody else, Stormin Normin I believe, and now I gave her to you. My apologies. She seldom reads an entire post before unleashing some kind of nuttiness. Again my apologies.

Bartender Cabbie said...

Also I might add that engaging her in conversation is a waste of energy. I know this from first hand experience.
BC

Jayhawk said...

Yeah, I'm figuring that out, but if you hang in there long enough you can make her devolve into total incoherence and gibberish, as witness her last comment here.

Bartender Cabbie said...

True enough

Ema Nymton said...

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Before you two go to your motel room and devolve your way to wacky land, I'd like to point out that name-calling is not winning arguments. I've noticed that whenever you can't discuss intelligently your point of view, you start calling those who do not agree with you 'idiots.'

As long as you are willing to accept and tolerate those who lie, cheat, and steal (by gaming the system) DO NOT complain when you are cheated, lied to, and stolen from.

Ema Nymton
~@:o?
.

Jayhawk said...

Oh, Emma, We are not complaining about GE, you are. I am maintaining that GE is doing precisely what the law allows it to do, law that was passed by legislators elected by the people of this nation. You are complaining about corrupt legislators and cheating corporations. And then you are all pissed off and telling me not to complain about what you are complianing about and wondering why we are calling you an idiot.

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