GE Hacks Tax Law – Pays Nothing

The NYT reports that GE has hired insiders from the IRS and Congress to tell it how to circumvent tax laws in America.

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.

This seems like a fun example of an insider attack being leveraged from the outside. Insiders leave an organization and then find they can make a handy profit explaining how to get around all the controls they know or even designed.

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