FROM CNN's Jack Cafferty:
As we reported in the Cafferty File last week - 47 percent of all U.S. households will pay no federal income taxes for last year… not a dime. They're in good company.
General Electric and Bank of America also managed to pay no income taxes to the federal government for 2009. That's right - not a single dime.
Here's how: Although GE earned lots of money last year - they did it overseas and not in the U.S.: General Electric's American operations lost about $400 million, while its international businesses netted nearly $11 billion in profit.
After deductions and adjustments - GE reported a negative 10.5 percent federal income tax rate... and wound up with a "tax benefit" of almost $1 billion.
When it comes to income tax payments on the overseas profits, they defer those "indefinitely."
Not bad… make $11 billion and get a tax benefit of a billion more. The rest of us need their accountants.
As for Bank of America - after major losses in 2009... it ended the year with a tax benefit of almost $2 billion.
Meanwhile - this country faces a staggering $12 trillion national debt... with skyrocketing deficits, estimated to top $1.6 trillion this year alone.
We are going bankrupt and Washington refuses to do anything meaningful about it.
But, don't worry, the big corporations are doing just fine. They own the politicians and the government as evidenced by these kinds of tax bills.
Here’s my question to you: Is it right that companies like General Electric and Bank of America paid no federal income taxes last year?
Interested to know which ones made it on air?
Kind of makes the whining about corporate tax rates nonsensical, doesn't it? They aren't the only corporations that pay little to nothing in taxes. Fair? No. Shouldn't be legal either. And now they can spend all that unpaid tax money to buy more politicians to shape laws to suit them. Why does any American with a brain support them?
Randy in Minnesota writes:
And you wonder why we are unable to pay the bills around here? With no tax money coming in, there's no money to pay out. If we're smart, we can put the Republicans back in charge in November and go through this again. It's time for the big companies to pay up and close the loopholes Republicans gave them over the past several years. Let's start paying down the deficit.
Clifford in New York writes:
If G.E. is playing by the IRS tax rules and abiding by our ridiculous tax code then they're entitled to whatever they can get. This really points out how ridiculous the tax situation is. Corporations that make billions of dollars should be paying taxes to help support the country they are doing business in. Small wonder that the taxpayers in America are so angry. The list of injustices seems to go on and on.
Larraine in Maryland writes:
What a surprise! We are always being told by Republicans that we need to end the corporate income tax. It looks like it's already ended. So they earned their income overseas? Does that mean that American soldiers don't need to defend them? It would be nice to see a little patriotism from these jokers, but don't hold your breath.
Peg in New York writes:
Who, exactly, allows this to be OK? Sounds like what is good for big business is not good for the tax-paying masses. That is just plain wrong in so many ways, on so many levels. I need new appliances, so G.E. is off my list!
Jack, How dare you suggest that corporations pay income tax? It is the responsibility of the citizens to pay the taxes so the government can give the bailouts, tax exemptions, tax credits, and subsidies to corporations.