Imagination at work

This NYT story about how G.E. gets away with paying practically nothing in U.S. taxes is a couple of weeks old but shouldn't be passed over.

Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.'s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.

It also dovetails well with the below listed "Quote of the Day" since the current President with a (D) behind his name has seen fit to appoint G.E.'s CEO chair of his Council on Jobs and Competitiveness. In fact, Obama's relationship with Immelt and G.E. makes us uncomfortable for all sorts of reasons.

In addition, it seems the Obama administration is pulling strings for GE overseas, applying diplomatic pressure on behalf of the company. India has resisted efforts to limit nuclear power industry liability in the event of a catastrophic failure like Fukushima, Three Mile Island, or Chernobyl. A senior U.S. government official said recently that India will still have to “bring its nuclear-liability regime in line with international norms” to ensure that U.S. nuclear equipment suppliers feel comfortable doing business in India. In addition, bribery seems part of the act — WikiLeaks recently released a U.S. diplomatic cable that reported money was offered to lock down Indian legislators’ support for the nuclear pact. According to Brahma Chellaney, a professor at the New Delhi-based Center for Policy Research and former adviser to India’s national security council, the Indian government has been weakened by scandals and therefore despite the best efforts of the Obama administration “it is safe to say that the Indian [liability] legislation will not be amended to accommodate the interests of GE and Westinghouse.”

While it's hard work imagining a world in which two plutocrats like Obama and Immelt aren't the close partners they are maybe we can imagine starting to work on it a little bit.