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An aggressive policy of tax reduction using GE Capital at GE leads to an astonishingly low tax rate. Shareholders see the uncertainty from GE Capital's volatile earnings and tax strategies with great skepticism. GE shares dropped to $6 during the 2008 global financial crisis because of GE Capital losses, and GE needed government rescue funds. The day CEO Immelt announced the decision to exit the banking business GE shares went up by 11%. GE's tax rate without the banking business will go up to about 20%.
Linked Articles
Price of Selling GE Capital? Tax Breaks
Wall Street Journal 04/14/2015
How corporate America is losing the debate on taxesWashington Post 03/05/2014
Jeffrey Immelt, CEO of GE, says the concept that the US could transition from a technology based export-oriented economic powerhouse to a services-led consumption based economy was fundamentally wrong. Mathew Slaughter of the Tuck School, Dartmouth, in a WSJ op-ed piece argues for a textbook principle of comparitive advantage, without considering the way it operates in a real the real world situation facing America as it struggles for economic renewal.
Linked Articles
Comparative Advantage and American Jobs
Wall Street Journal 01/26/2011
Jeffrey R. Immelt - A blueprint for keeping America competitiveWashington Post 01/21/2011
Linked Articles
GE Seeks Exit from Banking Business
Wall Street Journal 04/10/2015
Obama's Corporate MakeoverNew York Times 01/21/2011
Linked Articles
Wall Street Journal 01/26/2011
Behind the Curtain at G.E.New York Times 03/07/2009
Linked Articles
Wall Street Journal 01/26/2011
Dow Chemical's CEO on How to Revive ManufacturingWall Street Journal 02/23/2012
Linked Articles
Comparative Advantage and American Jobs
Wall Street Journal 01/26/2011
Obama's Corporate MakeoverNew York Times 01/21/2011
Linked Articles
Jeffrey R. Immelt - A blueprint for keeping America competitive
Washington Post 01/21/2011
Andy Grove: How America Can Create JobsBusinessWeek 07/01/2010
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