America is GE's tax haven

http://www.reuters.com/article/2011/08/23/column-dcjohnston-ge-idUSN1E77L1GU20110823

By David Cay Johnston

Tue Aug 23, 2011 8:03am EDT

Aug 23 (Reuters) - Washington politicians say high corporate tax rates are driving U.S. companies to invest offshore where tax rates are lower. But that is not General Electric's experience.

GE's disclosures show that over the last decade it paid much lower tax rates in America than offshore, just the opposite of the Washington political mantra. Even more puzzling, the U.S. corporate giant chooses to take more of its profits in other lands despite the higher tax rates there.

Given that GE (GE.N) has a roughly 1,000-person tax department dedicated to paying as little as possible in taxes, what the disclosures show is that something other than tax policy is driving GE's business decisions.