GE payed no US taxes in 2010

[Charles]

If there's any question about where the tax burden has shifted in the USA, all one has to do is look at what corporations like General Electric are paying.

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GE's corporate tax bill: Zero

The company didn't pay any US taxes in 2010. In fact, it got a tax benefit of $3.2 billion. With video updates.

By Kim Peterson
Fri, Mar 25, 2011

Slogging through your taxes right now? Maybe you could hire someone from General Electric (GE) to help.

The company has beaten Uncle Sam. It paid no U.S. taxes for 2010, The New York Times reported. In fact, it received a tax benefit of $3.2 billion.

It's not that GE can claim poverty. The company rang up $14.2 billion in profits last year, including $5.1 billion from U.S. operations.

How did GE do it? Through what the Times describes as "innovative accounting" and fierce lobbying, GE has been cutting its tax bill for years. In a stroke of genius, it hired a former Treasury official to lead its tax department and filled its team with former IRS employees and Congressional tax specialists.

The top corporate tax rate is supposed to be 35% -- one of the highest in the world. But few companies actually pay that rate, since there are myriad loopholes and other ways to get breaks. Now, the Times reports, only 6.6% of Uncle Sam's tax revenue comes from corporations (down from 30% in the 1950s).

Read more here.