Ronald Reagan introduced the nation in 1976 to the concept and existence of welfare queens, private citizens that pay no taxes but manipulate the system to obtain large amounts of government money. Sometimes welfare queens have very profitable but socially destructive businesses on the side and make even more profits. If that’s true, then General Electric is a welfare queen. Most of their businesses depend on government funding such as military expenditures, medicare expenditures, or nuclear powerplants. But they pay nothing, zip, zilch, nada in taxes. But they get to keep large profits. Do they use those profits to create U.S. jobs? Nope. When you’ve got pipeline to the inside of the government, it’s very profitable. As I’ve said before, it’s good to advise the king.
From Political Irony:
General Electric had profits of over $14 billion in 2010 and yet paid no taxes. In fact, they received a tax benefit of $3.2 billion. Now that’s corporate welfare! How does GE do it? By hiring former treasury officials to work in their tax department, and by aggressive lobbying to get tax laws changed to their favor.
Fifty or so years ago, 30% of all federal revenue came from corporations. Now it is only 6.6% — far less than individuals pay. In fact, a majority of large corporations don’t pay any taxes at all. And yet Republicans still want to cut corporate taxes even more.