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AMERICAN ELITE HIDE U.S.TAX $$ ABROAD & DO NOT PAY FAIR SHARE OF TAX $$ PRESIDENT OBAMA..

** president obama,the only color that really seperates americans today is the green **
EVEN FORBES MAGAZINE MUST BE AGHAST ON THIS FACADE OF THESE SELFISH U.S. WEALTHY ELITE SHAREHOLDERS GETTING AWAY WITHOUT SUPPORTING AMERICA WITH THEIR TAX $$$...

ALL THESE FOREIGN BOGUS SWISS BANK ACCOUNTS NEED TO BE PURGED AND WEALTHY ELITE AMERICA NEEDS TO BE BROUGHT BACK TO OUR SHORES WITH THEIR MENTALITIES & POCKET~BOOK TAX $$$...

** PRESIDENT OBAMA, THE ONLY COLOR THAT SEPERATES AMERICANS TODAY IS GREEN **

THE UNTOLD STORY ABOUT THIS CORRUPTED ELITE'S NON INTEREST IN SUPPORTING AMERICA WITH THEIR FAIR SHARE OF TAX $$$..

~ THEY CONTROL OUR U.$. CONGRE$$IONAL SPENDING,$O WHAT EL$E I$ NEW ~

< THESE BILLIONAIRE ELITE AMERICANS APPARENTLY HAVE NO SHAME EVEN KNOWING THE REST OF THE U.S. KNOWS ALL ABOUT THEIR SELFISHNE$$ >

THESE SAME WEALTHY ELITE SHAREHOLDERS WHO DO NOT WANT TO PAY U.S.TAXES ON THEIR CORPORATE PROFITS, ARE MANY OF THE SAME EXACT PEOPLE WHO ALSO CONTINUE TO PAY FOR THESE ELITE AMERICAN LOBBYISTS TO ENCOURAGE THE PEOPLES U.S. CONGRESS TO DENY PROPER HEALTH~CARE, DENTAL CARE,LEGAL CARE..ETC.. TO ALL OUR MIDDLE~CLASS & POORER AMERICANS LIVING IN OUR WEALTHY ELITE'S COUNTRY.

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FORBES
BELTWAY

WHAT THE TOP U.S. COMPANIES PAY IN TAXES
CHRISTOPHER HELMAN, 04.01.10, 03:00 PM EDT
HOW CAN IT BE THAT YOU PAY MORE TO THE IRS THAN GENERAL ELECTRIC?



IN PICTURES: WHAT THE 25 TOP U.S. COMPANIES PAY IN TAXES

HOUSTON -- AS YOU WORK ON YOUR TAXES THIS MONTH, HERE'S SOMETHING TO RAISE YOUR HACKLES: SOME OF THE WORLD'S BIGGEST, MOST PROFITABLE CORPORATIONS ENJOY A FAR LOWER TAX RATE THAN YOU DO--THAT IS, IF THEY PAY TAXES AT ALL.
THE MOST EGREGIOUS EXAMPLE IS GENERAL ELECTRIC ( GE - NEWS- PEOPLE ). LAST YEAR THE CONGLOMERATE GENERATED $10.3 BILLION IN PRETAX INCOME, BUT ENDED UP OWING NOTHING TO UNCLE SAM. IN FACT, IT RECORDED A TAX BENEFIT OF $1.1 BILLION.

IN PICTURES: WHAT THE 25 TOP U.S. COMPANIES PAY IN TAXESAVOIDING TAXES IS NOTHING NEW FOR GENERAL ELECTRIC. IN 2008 ITS EFFECTIVE TAX RATE WAS 5.3%; IN 2007 IT WAS 15%. THE MARGINAL U.S. CORPORATE RATE IS 35%.

HOW DID THIS HAPPEN? IT'S COMPLICATED. GE'S TAX RETURN IS THE LARGEST THE IRS DEALS WITH EACH YEAR--SOME 24,000 PAGES IF PRINTED OUT. ITS ANNUAL REPORT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION WEIGHS IN AT MORE THAN 700 PAGES.

INSIDE YOU'LL FIND THAT GE IN EFFECT CONSISTS OF TWO DIVISIONS: GENERAL ELECTRIC CAPITAL AND EVERYTHING ELSE. THE EVERYTHING ELSE--MAKER OF ENGINES, POWER PLANTS, TV SHOWS AND THE LIKE--WOULD HAVE PAID A 22% TAX RATE IF IT WAS A STANDALONE COMPANY.

BUT IT'S THE TAX BENEFIT OF OVERSEAS OPERATIONS THAT IS THE BIGGEST REASON WHY MULTINATIONALS END UP WITH LOWER TAX RATES THAN THE REST OF US. IT ONLY MAKES SENSE THAT MULTINATIONALS "PUT COSTS IN HIGH-TAX COUNTRIES AND PROFITS IN LOW-TAX COUNTRIES," SAYS SCOTT HODGE, PRESIDENT OF THE TAX FOUNDATION. THOSE LOW-TAX COUNTRIES ARE ALMOST ANYWHERE BUT THE U.S. "WHEN YOU ADD IN STATE TAXES, THE U.S. HAS THE HIGHEST TAX BURDEN AMONG INDUSTRIALIZED COUNTRIES," SAYS HODGE. IN CONTRAST, CHINA'S RATE IS JUST 25%; IRELAND'S IS 12.5%.IT'S GE CAPITAL THAT KEEPS THE OVERALL TAX BILL SO LOW. OVER THE LAST TWO YEARS, GE CAPITAL HAS DISPLAYED AN UNCANNY ABILITY TO LOSE LOTS OF MONEY IN THE U.S. (POSTING A $6.5 BILLION LOSS IN 2009), AND MAKE LOTS OF MONEY OVERSEAS (A $4.3 BILLION GAIN). NOT ONLY DO THE U.S. LOSSES BALANCE OUT THE OVERSEAS GAINS, BUT GE CAN DEFER TAXES ON THAT OVERSEAS INCOME INDEFINITELY. THE TIMING OF BIG DEDUCTIONS FOR DEPRECIATION IN GE CAPITAL'S EQUIPMENT LEASING BUSINESS ALSO PROVIDES A TAX BENEFIT, AS WILL LOAN LOSSES LEFT OVER FROM THE CREDIT CRUNCH.

CORPORATIONS ARE GETTING SMARTER, NOT JUST ABOUT DOING MORE BUSINESS IN LOW-TAX COUNTRIES, BUT IN MOVING THEIR MORE VALUABLE ASSETS THERE AS WELL. THAT MEANS SETTING UP OVERSEAS SUBSIDIARIES, THEN TRANSFERRING TO THEM OWNERSHIP OF LONG-LIVED, OFTEN INTANGIBLE BUT HIGHLY PROFITABLE ASSETS, LIKE PATENTS AND SOFTWARE.
AS A RESULT, FIGURES TAX ECONOMIST MARTIN SULLIVAN, COMPANIES ARE KEEPING SOME $28 BILLION A YEAR OUT OF THE CLUTCHES OF THE U.S. TREASURY BY ENGAGING IN SO-CALLED TRANSFER PRICING ARRANGEMENTS, WHERE, SAY, MICROSOFT'S ( MSFT - NEWS -PEOPLE ) OVERSEAS SUBSIDIARIES LICENSE SOFTWARE TO ITS U.S. PARENT COMPANY IN RETURN FOR HANDSOME ROYALTIES (THAT GET TAXED AT THOSE LOWER OVERSEAS RATES)


"Corporations are paying lower amounts of their profits in taxes now than in the past," says Douglas Shackelford, who teaches tax law at the University of North Carolina at Chapel Hill. "Other countries have been lowering their rates, but not the U.S."

Mind you, not all global megacorps enjoy such low tax rates. Try to muster some pity for Big Oil. ExxonMobil ( XOM - news- people ) in its 2009 annual report to the SEC, recorded a larger income tax expense than any other U.S. company last year, some $17.6 billion, or 47% of pretax earnings. Exxon's peers Chevron ( CVX - news - people ) and ConocoPhillips (COP - news - people ) likewise recorded similarly high effective tax rates. The oil companies are oddities among the multinationals because many of the oil-rich countries where they do business levy even higher taxes than the U.S.

Though Exxon's financial statement's don't show any net income tax liability owed to Uncle Sam, a company spokesman insists that once its final tax bill is figured, Exxon will owe a "substantial 2009 tax liability." How substantial? "That's not something we're required to disclose, nor do we."Exxon tries to limit the tax pain with the help of 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that (legally) shelter the cash flow from operations in the likes of Angola, Azerbaijan and Abu Dhabi. Exxon has tens of billions in earnings permanently reinvested overseas. Likewise, GE has $84 billion in overseas income parked indefinitely outside the U.S.

Naturally the Obama administration wants to put an end to this. It has proposed doing away with tax deferrals on overseas income. If the plan passes, a U.S. company that pays a 25% tax on profits in China would have to pay an additional 10% income tax to Uncle Sam to bring it up to the 35% corporate rate. "Eliminating deferrals would put U.S. companies on an unlevel playing field," says the Tax Foundation's Hodge, "especially if competing with the likes of Germany, which only taxes companies on domestic operations."

Hewlett-Packard ( HPQ - news - people ) and others among the top 25 state in their annual reports that if Obama's tax measures pass it would mean a certain tax hike, probably amounting to billions of dollars.

In the same vein, JPMorgan Chase ( JPM - news - people ) Chief Executive Jamie Dimon has spoken out against an Obama proposal to levy a special tax on banks to recoup bailout costs. "Using tax policy to punish people is a bad idea," said Dimon. "All businesses tend to pass costs on to customers."Would no more tax holiday for GE really end up helping Mr. and Mrs. Taxpayer? Doubtful. "The average Joe should be in favor of lower corporate taxes," says Hodge, "because ultimately they are paying the corporate income tax. Either as workers, getting lower wages and fewer jobs, or as consumers, paying higher prices, or as retirees, getting lower dividends and earnings on their investments."


In Pictures: What The 25 Top U.S. Companies Pay In Taxes

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LAWYERS FOR POOR AMERICANS IS A INDEPENDENT VOLUNTEER WWW NATIONAL & INTERNATIONAL LOBBY THAT SINGS OUT FOR AMERICAN MIDDLE~CLASS & POORER AMERICANS LIVING IN OUR WEALTHY ELITE'S COUNTRY.

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