Tax Debacle

The G. E. Tax Refund issue is petty. It is as though no one ever filed income taxes. The Internal Revenue Service does not refund money that was not paid for in taxes.

Businesses are already burdened with additional taxes on Employee's Income. They pay a percentage of FICA, Medicare and Income Tax Reductions in addition to what is deducted from paychecks. They pay for unemployment, business related purchases, travel expenses and utility expenses. This does not account for non-business related property and sales taxes.

G. E. paid billions of dollars in taxes to get a $1.1 billion income tax return. Previously working for corporations several people and I claimed fewer exemptions to insure we had a tax refund at the end of the year. It was preferred over a savings account to pay more income taxes at a potentially inconvenient time. It is a strategy.

Why are so many people upset about a successful business strategy? If anything businesses should take note of the G. E. refund and pay more during the year to get a refund, instead of, paying an addition million or billion dollars to the government each spring.

There are realities of life. One of them is taxes. When a new homeowner buys a home they may claim a portion of the mortgage taxes for a refund. When a person has additional costs to care for a dependent they claim a portion of the taxes for a refund.

The operational words are portion and refund. A portion is a percentage. Instead of, paying one hundred percent in taxes people receive a deduction on a percentage to avoid double-taxation. It is not the full amount of the paycheck or facility truck plus taxes. It is only the taxes. A percent of a percentage is refunded after already paying.

If anything, we should be surprised at how much G. E. is earning, buying and how many jobs they supply nationally and internationally to receive a $1.1 billion income tax refund.