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Our Tax System Stinks

November 25, 2011 by  

$14 billion in profits, zero in taxes. If you invest in General Electric, congratulations. Your company made $14 billion in profits last year and didn’t pay a penny in taxes. How was that possible? Well, $5 billion in profits in the United States were zeroed out because of a multitude of tax credits (think green energy) and other deductions. And $9 billion was earned and kept overseas, so no taxes were due on that money, either. If this makes you think our tax system stinks, you’re right. Now, what are we going to do about it?

And speaking of a government program that stinks. There are several landfills in and around Dallas where companies can dump garbage. But only one is owned by the city. The McCommas Bluff Landfill in South Dallas charges $21.50 per ton of trash. The private landfills in north Dallas charge $17 to $18 per ton. So the city has decided to order every waste truck in the city to bring their trash to McCommas. The city expects to earn $15 million to $18 million more in revenue. Of course, it will cost the trash haulers more than that, to pay for the extra time, gas, labor, etc. — every penny of which will be passed on to their customers. Isn’t it great when government runs things?

And this is a bad thing? In a speech in San Francisco last month, President Barack Obama warned that if he loses the 2012 election: “It could herald a new, painful era of self-reliance in America.” Only in San Francisco would an audience agree that self-reliance is a bad thing. My momma would have wanted to spank them all.

An amazing blockbuster. Forget “Titanic,” “Avatar” or some other Hollywood hit. The biggest blockbuster in years didn’t come from a movie studio but a bunch of geeks playing war games. In the first 24 hours of its release, “Call of Duty: Modern Warfare 3” sold 6.5 million units, for a total take of $400 million. Please note: That was the sales in one day. Give it a year and the game could pass $1 billion in sales. That’s a lot of bullets, blood and bodies.

–Chip Wood


Chip Wood

is the geopolitical editor of He is the founder of Soundview Publications, in Atlanta, where he was also the host of an award-winning radio talk show for many years. He was the publisher of several bestselling books, including Crisis Investing by Doug Casey, None Dare Call It Conspiracy by Gary Allen and Larry Abraham and The War on Gold by Anthony Sutton. Chip is well known on the investment conference circuit where he has served as Master of Ceremonies for FreedomFest, The New Orleans Investment Conference, Sovereign Society, and The Atlanta Investment Conference.

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  • Poorgrandchildren

    We need to force our DC employees to eliminate (by Constitutional amendment) all taxes except for the Fair Tax.

  • Christopher Popham Smith

    There appears to be no stopping the graft and corruption of the
    White House, especially as it relates to General Electric as its
    CEO is also in the White House as a labor/economic ‘adviser’.
    The duplicitous, insidious corruption of our Congress and the WH
    will surely lead to the 21st Century American Revolution.
    The only possible resolution would be to begin with a polite, yet
    forceful entreaty for the president to stand down, but that won’t
    happen, my fellow Americans, because like Congress, you are too
    dismissive, complacent and cowardly to rise up and insist on getting
    America back on track.
    Good luck, America.

  • s c

    Chip, I’ve tried recently to get some people to realize that hating corporations is a futile gesture when their White House “GOD” is a supreme hypocrite.
    Maybe they can’t get ZERO TAXES [GE = ZERO TAXES, you schtuppers!] into their empty heads. Without a doubt, when you dedicate yourself to certain beliefs, your brain goes with what common sense some folks ever had and it’s OUT the door.
    No wonder we cn’t communicate with utopians or their bedmates in that damned pig sty they call the First Church of the ^**-#*%^ HYPOCRITE. Maybe retrograde abortions aren’t such a bad thing, after all, Chip.


    The better questions to ask are, How many jobs by catergory and wages per category did they pay and how much in taxes did every employee pay in taxes during every year of their employment in the USA and overseas. Then the next question is to ask if you would prefer GE move overseas to china and employ chinese workers instead? And of course would love to know how many asian employees are already employed by GE over the last year. Did GE pay any State taxes or purchase any local goods and whether those businesses made a taxable profit dealing with GE. The next question is why your government introduced the GREEN credits schemes in firts place….and many other questions. Did GE borrow money locally and pay interest to locals and did GE Money lend money to any locals? Did GE pay any taxes on any overseas businesss and Investments? Gillysrooms from Australia.

    • s c

      Gillysrooms, apparently no one told you that GE IS moving to China. Besides getting GE out of paying taxes, the schmuck who runs GE hates America so much that he he didn’t hesitate to ‘go elsewhere.’
      I’d freeze all of his assets, and let his sorry arse stay in China. They can have him.

      • http://n/a Gaffer

        To S.C., where do you get this stuff? Are you just making it up on the fly? Walmart won’t buy from anywhere but China: do you want GE to make stuff here that they cannot sell to Walmart? Have you tried to buy anything not made in China? I tried to buy a water dispense not made in China — I had to eventually admit defeat. Do you see the labels that say “made in (insert province in China here)” so that they can try to fool you? The problem goes deeper than ranting against GE.

        • Aix Sponsa

          I’m not sure where your WalMart is, but ours has a multitude of products produced all over the world…. most places besided the USA. Sure China is the main supplier to our economy, and now that they might bail out the EU….. OH Wait, in 1948 didn’t China say that they would take over the USA (west) without firing a shot?

          • Ron

            I believe it was closer to 1060 and I believe it was Nikita Khrushchev that said to the effect that “we will bury you without firing a shot”.
            Just wanted to get closer to the year.

          • Vigilant

            Sorry, Ron, you’re only 900 years off (:_)

        • s c

          g, I’ve read and re-read your diatribe several times since the 25th, and I have to conclude that a) you’re a paid shill for Obs b) you rely on the lamestream media for your information OR c) you’re in deep denial about Obs being happily ‘in bed’ with GE.
          Are you one of the few people on this website to realize that Obs is bunking with corporations? It’s no secret that most utopians love to rant and rave about “nasty” corporations.
          If that’s really the case, then how it it that the current White House ‘Savior’ preaches hate toward corporations but LOVES GE? If you want to “DIG” deeper, first you need to wake up and then remove your head from that dark, smelly place where it’s presently lodged, comrade.
          I don’t ‘make it up,’ bubba. You, it seems, are in the habit of winging it and flogging the truth whenever it feels good. Is it a part of your utopian contract?

        • Joe H.

          That’s your problem. you shop too much at wally world!!! I very seldom shop there. I bought two pairs of sneakers there this spring. I wore one about 2 1/2 months before they cracked across the sole. I started using the other pair and the lasted a total of 5 weeks before the heel cracked lengthwise!!! I have an old ratty pair that are about two years old that I bought from K-mart. Yes they were made in China as well, but the quality was much better and they were about the same price!! I wanted an American made knife and searched for almost a year before I found an SOG “blink”. US made, holds an edge well and very easy to open since it is spring assisted. It might take a little longer, but I will still hold out for US made products, even if i have to buy used like tools and such!

  • Mike

    If ANY company sells a product in this country, they should have to pay taxes. What GE got away with was obscene. Why not lower our corporate tax rates to a competetive level, and raise personal tax rates? That would bring some much-needed jobs back to America. Our corporate tax rates are the highest in the world. Why should a company start a new business here when they can go to another country and get to keep much more of their money?

    • Aix Sponsa

      Ya still dont get it. More taxes to fund the government? NO….. we need less government spending, not more taxes going TO government.

      By the way, if there were high import taxes (going to government) to raise the consumers’ shelf prices of all imported products, do you really believe that manufacturing would come back here? It would still be cheaper for the companies to stay where they are. And the American consumer…… WE WOULD BE THE ONES PAYING THE BILLS….. SENDING MORE BUCKS TO THE WASTEFUL POLITICIANS.

      • Aix Sponsa

        WTH is it with you people that believe that if a WalMart polo shirt cost $100 (by tax or made here) that the US economy would be any better because of it? Our problem is far deeper than that. It is the runaway spending on unnecessary crarp. The US government is like the alcoholic smoker who is obscessed to buy lottery tickets instead of feeding his family. His choice to destroy his way of life.

        • Buster the Anatolian

          If, and it is a BIG if, the shirt that cost $100 due to import taxes could be made here for $75 then the American consumer (except those who are so brainwashed they believe Wallyworld always has the lowest prices) will purchase the American made shirt.

      • Aix Sponsa

        Around here they recently tore out a perfectly good highway that was carrying all the traffic and built a new one. They also just spent a couple million building an half mile long airport runway taxiway extending only half-way down the runway to nowhere at an obscure little used airport….. A couple million for a 1/2 mile long wide road? WHY? Because it was “FREE” government money. Sure it created 8 jobs for people from 400 miles away who were brought in to do it. This airport has no services and the airport commission refuses to allow a resident aircraft inspector/mechanic to operate on this airport. Government BS at its best. Local graft of federal tax money. A few folks lined their pockets.

        • http://n/a Gaffer

          Aix Sponsa you are n the right track (no pun intended). Government waste is the biggest problem. Second biggest is we keep electing them. I don’t have a solution to that except maybe the teachers we hire to educate our children aren’t doing a good job. They mostly seem to have “left” their senses behind somewhere around the same time they decided teaching was the best profession.

          • Joe H.

            Those teachers teach to who collects for their pay. They teach to have good little progs to secure their retirements and pay.

  • Karolyn

    Regarding the video game, that’s what this country is about – violence! You can see it right here on PLD, with people advocating lynchings, shootings, etc. We live in one of the most violent countries in the world. Our violent crime outstrips many other countries by a mile.

    • Buster the Anatolian

      Karolyn……..According to studies by a British newspaper most of western Europe has a higher violent crime rate than the US. According to the study the UK violent crime rate was over 2,000 per 100,000 while the US rate was around 460 per 100,000. The other European countries mentioned had from 900 to 1,800 violent crimes per 100,000.

      • http://PersonalLibertyDigest Liberty

        Buster, thank you…………………were we tp adopt Kayolyn’s thinking, our crime rates would go literally through the roof.

        An armed society, is a bit more polite than an unarmed society; in addition to having the option of protecting its’ citizens against a tyrannical gov’t.

    • Joe H.

      Then please explain why that violent crime in th last three years has gone down while gun ownership has gone UP!! Matter of FACT, gun ownership is at an all time high!!!

  • Robert A. Overholser

    The only way out of this mess we are in is the “Fair Tax”. Get all the facts by truly studying it with an open mind and you will understand why it is the only way.

  • http://n/a Gaffer

    So, if GE stopped spending on ECO projects that are rewarded by the tax system, would that make you happy? If GE were forced to pay taxes to two differenc countries for the same profit, would that make you happy. If overseas companies were forced to pay taxes to two different countries for the same profit, do you think they would invest in the good ol’ USA?
    Just wondering……………

  • Aix Sponsa

    Grandpa always said, “When the excrement strikes the rotating airfoil the feculance is not equally distributed to all recipients.”

  • Kevin Beck

    Since businesses only act as tax collection agents on behalf of the government, we need to think of doing taxation in some other way than upon income.

    From all that I have studied over the last 20 years as a tax specialist, the Fair Tax seems the best way that has been presented so far. This would eliminate taxes upon capital (which only separates money from people that have new ideas); it would only be paid once, at the retail level; it would guarantee that everyone who spends above the poverty level would pay some tax; it would eliminate payroll taxes; it would eliminate schemes put in place by politicians to tie “preferred activities” to tax savings; and it would devolve economic power away from the political class in Washington, DC. Who could ask for anything more?

  • John Hart

    All taxes ultimately end up in the price of products, especially Corporate taxes. This is why Democratic policies have failed to eliminate poverty and have in fact increased it. The taxes funding Government programs helping the poor end up being paid by the poor who have to spend all they earn to stay alive.

    Taxes on income kill jobs. They rob successful people who create jobs and reward lousy investors who do not. Government’s primary job is to protect property and owners should be the ones paying.

    The current system prevents people from becoming wealthy and protect the monopoly of capital of the Elite.

    The solution, no taxes until one has sufficient assets to care for family.

  • Pam

    I have hope in the fair tax.
    I have hope that more of us will limit the time we take placing blame and arguing about the un-hopefull.
    I also believe we each have to take responsibility for where our money(labor and energy)goes. Please don’t let committees or corporations choose what you will support. Less government, fair opportunities, more education, local prosperity, and an environmentally sustainable lifestyle are some examples of my aims.
    Ron Paul is a candidate I will take seriously.

  • s c

    Not many people picked up on Obs’ attitude on self-reliance. Just in case you’re wondering, folks, if you don’t understand the significance of
    Obs’ remark, please DO NOT EVER vote again. The Founding Fathers would have been utterly STUNNED to know it would be possible in the future to elect someone who thinks that being SELF-RELIANT is a liability.
    Consequently, because of what Obs means, it PROVES he is an utter LIABILITY in the W H. It also PROVES that anyone who voted for Obs is a LIABILITY. The idea that America could have such an OBVIOUS
    DOMESTIC ENEMY in the W H means that Americans, as a group, are DEVOLVING (assuming that evolution was ever partially true).
    If that doesn’t jolt you into knowing how bad that is, then you owe it to America to climb back into that tree, trudge back to a cave or head out into the nearest mountain range or desert and STAY AWAY FROM the rest of us.
    Spread the word, folks. OBS IS A DOMESTIC ENEMY.
    The Founding Fathers were right. God help us. Our final challenge is here and now.

  • http://explorer Scout

    We’re all awaare of the GE situation but nothing ever gets accomplished. Why? Because we sit here and write on another. OWS is doing more than us.


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