News How to make $5.1 Billion (US) and not pay federal taxes

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General Electric reported a $5.1 billion profit last year but did not pay federal taxes, raising concerns about corporate tax practices. The discussion highlights the perception that GE is exploiting tax laws, which some argue need reform. Participants note that while GE claims compliance with existing laws, the situation reflects broader issues with corporate taxation and lobbying. The idea of a flat tax system is proposed as a solution to eliminate perceived inequities and double taxation, suggesting that corporate taxes should be removed altogether. The conversation also touches on the economic implications of corporate taxes, arguing that they ultimately burden consumers and hinder job creation. Additionally, there are concerns about the influence of corporate lobbying on tax legislation, with calls for transparency in how taxes affect product pricing. The debate underscores the complexity of corporate taxation and its impact on the economy, employment, and fairness in the tax system.
  • #91
Amp1 said:
No, actually the assets are the corps. The BOD or upper level management can decide if it should be disbursed or reinvested back. The ones investors like disburse.

I'm not sure what your point is - the shareholders own the corporation that owns the assets. The board is accountable to the shareholders and the executive management is accountable to the board.
 
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  • #92
The def. I gave says a corp is a person to the law. Notwithstanding ownership by stakeholders, a corp doesn't have to give them yield on revenue.(am i wrong?)
 
  • #93
Amp1 said:
The def. I gave says a corp is a person to the law. Notwithstanding ownership by stakeholders, a corp doesn't have to give them yield on revenue.(am i wrong?)

Sometimes reinvestment or debt reduction might serve the corporation better than a dividend disbursement. Given that a corporation is an on-going entity - it's ability to survive should be a priority. The same could be said of a government - in order to survive it must control it's expenses and debt.:smile:
 
  • #94
Amp1 said:
No, actually the assets are the corps. The BOD or upper level management can decide if it should be disbursed or reinvested back. The ones investors like disburse.
Either way, the corp, and its assets are owned by the stockholders. The only difference is whether the value is reflected in a higher stock price or in dividends.
Amp1 said:
The def. I gave says a corp is a person to the law. Notwithstanding ownership by stakeholders, a corp doesn't have to give them yield on revenue.(am i wrong?)
A corporation doesn't have to "give" stockholders anything: they already have it. If a corporation re-invests all revenue instead of issuing dividends, it makes the stock of the corporation more valuable, since stock is ownership of the corporation as a whole, not just a claim on dividends.
 
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