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Rudolph: US Inequality Quiz | Informed Comment

Rudolph: US Inequality Quiz | Informed Comment
12. How much in corporate income taxes did General Electric pay to the United States on its 2010 billions in profit?

-In 2010, “General Electric…reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.” “Although the top corporate tax rate in the United States is 35 percent, one of the highest in the world, companies have been increasingly using a maze of shelters, tax credits and subsidies to pay far less….Such strategies, as well as changes in tax laws that encouraged some businesses and professionals to file as individuals, have pushed down the corporate share of the nation’s tax receipts—from 30 percent of all federal revenue in the mid-1950s to 6.6 percent in 2009….G.E. spends heavily on lobbying: more than $200 million over the last decade…While G.E.’s declining tax rates have bolstered profits and helped the company continue paying dividends to shareholders during the economic downturn, some tax experts question what taxpayers are getting in return. Since 2002, the company has eliminated a fifth of its work force in the United States while increasing overseas employment. In that time, G.E.’s accumulated offshore profits have risen to $92 billion from $15 billion…” (http://www.nytimes.com/2011/03/25/business/economy/25tax.html?_r=1&ref=homepage&src=me&pagewanted=print)

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