Late Night: Pouting Baby Doesn’t Understand Why Little Melting Jeff Won’t Let GE Pay Taxes
It looks like Pouting Baby is talking to us again. — JW
I don’t understand why Little Melting Jeff is so mean to our government. His company made $14 billion last year, but they won’t give any of that money to the government. Companies like Little Melting Jeff’s are a big reason why our government doesn’t have enough money. Even the Carnie Guy who is supposed to make things look good for Mr. O can’t explain this one:
White House Press Secretary Jay Carney acknowledged once more on Thursday that average Americans would be confused, if not appalled, by the fact that General Electric Co. did not pay any federal income taxes in 2010 despite more than $5 billion in profits.
One “might say, ‘what the heck, I don’t get this,’ ” Carney said during his daily briefing, adding that, “the president shares that opinion. … He believes our corporate tax structure needs to be reformed.”
The Carnie Guy needed to make this look good because Little Melting Jeff runs Mr. O’s jobs council:
President Barack Obama named 22 people to his new Council on Jobs and Competitiveness, whose estimable task, according to the White House, is to “out-innovate, out-educate, and out-build our global competitors in order to win the future.”
The panel is led by General Electric Chief Executive Jeff Immelt.
I don’t know about winning the future, but Little Melting Jeff sure seems to have won the present if his company can keep all that money it made. He is feeling a little heat for it:
The chief of General Electric (GE, Fortune 500) on Thursday defended the conglomerate’s zero tax rate in 2010, and called for reform of the U.S. tax code.
In his first public speaking engagement since a barrage of criticism about not having to pay taxes in 2010, GE chief executive Jeff Immelt told the Economic Club in Washington that his company did nothing wrong.
“At GE, we do like to keep our tax rate low, but we do it in a compliant way, and there are no exceptions,” Immelt said. “Our tax rate will be much higher in 2011 as GE Capital recovers.”
Mr. Jake asked Little Melting Jeff about it today, too…
News that General Electric made $14 billion in profits in 2010 but paid zero in federal taxes has led to liberal leaders like former Sen. Russ Feingold, D-Wisc., and MoveOn to call for President Obama to show the door to GE CEO Jeff Immelt, the chairman of President Obama’s Council on Jobs and Competitiveness.
We caught up with Immelt in Washington, DC today and I asked him about the criticism.
I always worry when I see someone saying something they want me to believe while they are shaking their head back and forth like they are saying “no.” Does Little Melting Jeff believe what he is saying to Mr. Jake? And I didn’t hear Little Melting Jeff say that those 6500 new jobs are in the US. Why didn’t Mr. Jake ask about that?
What’s really funny is that Little Melting Jeff probably didn’t expect all this attention about not paying taxes. Here is part of what he said in the letter to shareholders with GE’s annual report for 2010:
Our goal is to maintain Infrastructure earnings between 60% and 70% of GE’s earnings. Our tax rate increased in 2010 and will grow substantially in 2011.
How can the tax rate increase if they paid no taxes? That’s because Little Melting Jeff also works to get tax credits for his company. I guess they got a lower tax credit in 2010 than they got in 2009. Don’t you wish you could make that kind of money and still get tax credits?