Half of all Americans don’t pay federal taxes on their income. And neither, apparently, does General Electric, the multi-national company that reaped $14.2 billion in profits last year. Though G.E. is the largest corporation in the U.S., it did not have to pay a dime in U.S. taxes, according to the New York Times . In fact, the company claimed $3.2 billion in tax benefits. That may be hard to fathom for the millions of American business owners and households now preparing their own returns, but low taxes are nothing new for G.E. The company has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than at most multinational companies. Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress. According to the Times, “one of the most striking advantages of General Electric is its ability to lobby for, win and take advantage of tax breaks.” These tax breaks are incredibly important to G.E.–so important that G.E.’s head tax man got down on his knees and begged Rep. Charles Rangel to let a particularly lucrative one extend past its expiration date in 2008: The head of its tax team, Mr. Samuels, met with Representative Charles B. Rangel, then chairman of the Ways and Means Committee, which would decide the fate of the tax break. As he sat with the committee’s staff members outside Mr. Rangel’s office, Mr. Samuels dropped to his knee and pretended to beg for the provision to be extended — a flourish made in jest, he said through a spokeswoman. In an interesting sub-section of the article, the Times claims that G.E.’s tax strategy flies in the face of Ronald Reagan’s legacy: In the mid-1980s, President Ronald Reagan overhauled the tax system after learning that G.E. — a company for which he had once worked as a commercial pitchman — was among dozens of corporations that had used accounting gamesmanship to avoid paying any taxes. “I didn’t realize things had gotten that far out of line,” Mr. Reagan told the Treasury secretary, Donald T. Regan, according to Mr. Regan’s 1988 memoir. The president supported a change that closed loopholes and required G.E. to pay a far higher effective rate, up to 32.5 percent. That pendulum began to swing back in the late 1990s. G.E. and other financial services firms won a change in tax law that would allow multinationals to avoid taxes on some kinds of banking and insurance income. The change meant that if G.E. financed the sale of a jet engine or generator in Ireland, for example, the company would no longer have to pay American tax on the interest income as long as the profits remained offshore. President Obama recently tapped G.E. CEO Jeffrey Immelt as his liaison to the business world. Immelt also serves as the chair of the President’ Council on Jobs and Competitiveness. The story is that Immelt and Obama may discuss reforming the corporate tax code–not that Immelt has any incentive to!
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Guess Which Company Paid $0 in Taxes (on $14.2 Billion in Profits)? Hint: Its CEO Works for Obama
The House voted to impose the rarely used punishment of censure on New York Democratic Rep. Charles Rangel for nearly a dozen ethics violations.
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Rangel Censured for Ethics Violations
No one likes to see a grown man beg – unless of course it’s Charlie Rangel. Any regular Joe would be in jail if they did the things he did. So, while sad, I can’t imagine there are too many tears being shed across America as old Charlie grasps at straws. From the AP : WASHINGTON — Rep. Charles Rangel of New York asked 25,000 campaign donors Wednesday to call the Capitol switchboard and urge their representatives to vote against censuring him for ethical misconduct. I’m sure the operators are very, very busy right now answering all those calls of support for Charlie Rangel. Imagine if the rest of the 306, 981, 550 people in America who don’t support Rangel called the Capitol switchboard? That would be something if that many people called (202) 224-3121. I’m just saying.
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Rangel resorts to begging
Rep. Charles Rangel hopes to make one last plea for leniency in his ethics case before the House votes on whether he should be censured for 11 rules violations.
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Rangel Seeking House Leniency
An emotional Rep. Charles Rangel asked for mercy from the House ethics committee before panel members said they would seek a House vote to censure the 80-year-old lawmaker.
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Rangel Pleads for Mercy
The House Ethics Committee is now holding an open hearing on corruptocrat Democrat Charlie Rangel’s sanctions for violating 11 of 13 ethics charges. Rangel is in the room. He is flanked by Democrat Rep. John Lewis. You can watch the livestream at CSPAN3 online now. More from CSPAN3: After the committee meets in an open session, they will proceed behind closed doors to vote on the disciplinary measures. They will then send a final report to the U.S. House so that action they recommend may be taken. Rangel, who was recently reelected to his 20th term in office, is not expected to face the most severe punishment, which would be expulsion from the House, but other penalties range from a reprimand to paying a fine. The 11 violations include filing flawed financial-disclosure statements and the misuse of a rent-controlled apartment. To repeat: Deliberations will take place behind closed doors. Long live transparency! Rangel pleads for “fairness” and “mercy,” after whining about being “ smeared :” Harlem Rep. Charles Rangel admitted he made “mistakes,” then claimed he was “smeared,” and finally pleaded for “a drop of fairness and mercy” in a rambling statement Thursday. “I have been smeared with allegations of corruption and personal gain,” Rangel said. Rangel released his statement just before he was to learn his punishment from the House panel that found him guilty two days ago of 11 ethics violations. “I was and am disappointed that the Committee reached its decision without affording me the right to adequately defend myself with the aid of counsel,” Rangel wrote. The 80-year-old lawmaker neglected to mention that it was his decision to show up for his ethics trial without a lawyer – and then boycott the proceedings after the panel refused his request for a delay. Self-delusion in full bloom at Rangel’s site: “No evidence of corruption.” Leave your predictions on what degree of wrist-slap the House ethics panel will recommend… *** GOP Rep. Jo Bonner blasts Rangel’s “arrogance.” “It is painful for me to say this to a man whom I personally respect, but Mr. Rangel can blame no one other than himself for the position he finds himself in…he should only look in the mirror for who to blame.” House ethics panel chief counsel Blake Chisam reviews past punishments issued by committee ranging from expulsion to letters of reprimand. Chisam blasts Rangel’s “sloppiness” and “carelessness” in filing his own taxes and public disclosure documents while overseeing tax laws for everyone else. “Public office is public trust. [Rangel] violated that trust.” Chisam: “Reprimand would not be inconsistent with precedent…however…something more than a reprimand but less than a censure would not be appropriate…we cannot ignore the fact that [Rangel] was ranking chairman…as a result, I respectfully submit that this committee…recommend…censure…” 12:56pm Eastern Rangel has been rambling for the past 15 minutes or so, at times defiant, saying he doesn’t want to relitigate the ethic trial he skipped out on — and then proceeding to relitigate it. Rangel says he doesn’t want to be “self-serving” & praise himself for his 50 years in government, so he brought Rep. John Lewis to do it for him. But before turning over the mic, Rangel pats himself on the back. John Lewis on Rangel: “I don’t know the facts in this case…” But proceeds to extol Rangel for marching for civil rights, anyway. Ian Schwartz at RCP has the embarrassing vid. 1:30pm Eastern Panel is now in executive session behind closed doors to determine final degree of wrist-slap. 2:59pm Eastern Rangel gave closing statement before panel re-adjourned to decide on sanctions. Pleaded not to be labeled “corrupt.” Invoked God, apologized for any embarrassment. Crocodile tears welled up in his eyes. Pity party to be continued. 7:08pm Eastern . Ethics panel recommends censure, 9-1 .
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Rangel wrist-slap hearing convenes; House ethics chief counsel recommends censure; Rep. Lewis plays the race-baiting stooge; Charlie chokes up: I am…
A House ethics panel found Charles Rangel guilty of 11 of the 13 counts of violations lodged against him.
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Rangel Found Guilty of Ethics Violations
