GE profits and negative income tax.

GE on of the largest industrial and financial giant had profits in USA of 5. 1 billion dollars and negative taxes .It forces one to wonder why it is that burden of national taxation has been shifted to smaller enterprises and individuals by higher property taxes ,Sales taxes and other taxes and fees.

In the last year company had 14.2 Billion profit from the worldwide operations and its American businesses earned 5.1 billion profit with Zero tax liability.

Is this the image of outstanding corporate citizen we want to promote.Yes GE is in important enterprises including defence ,aviation and power generation including Nuclear.Mr Obama has appointed Mr Immelt head of the Presidents Council on Jobs and Competitiveness. I hope his contribution can be in job creation and helping USA in being more competitive and not avoidance of taxes. Corporate tax burden as percentage of tax revenue has been reduced from 30 percent in Mid fifties(1950) to 6 percent in 2009 .

Highest rate of income taxes for corporations is 35 percent but with all the tax loop holes shelters and tax credit it is much lesser as it is proven by the taxes paid by one of the largest corporations in America.

IT would be nice If along with other data of large corporation ratings by Forbes a line would be added for the federal taxes paid by these corporations .I would like to see the same done for the richest in America and world wide.I wonder if in many of the cases the gains have been privatised and nations (citizens) are holding bags for all the expenses which make it possible for these entities to make exorbitant profit.

Warren Buffett and his Goldman Sachs investment

Warren Buffett had made Goldman Sachs investment of 10 billion dollars.With a guaranteed return of ten percent, which is a nice return in today's market. He gets also warrants to buy Goldman common shares at $115 with in five years which itself is worth currently at 2 billion with Goldman share price at $161.

We know this has been a good investment for Buffett and his company.No wonder he is a master communicator and shrewd businessman.He is master at buying low priced good valued products. His return on Goldman Sachs is 111 PERCENT ANNUAL.Federal government did not do that bad either at a return of 22 percent as these investments did not go belly up.Part of the funds received by Goldman was paid through TARP to other companies.So we might have paid this return of 22 percent in unrecoverable payment to other institutions.

Now let us look at the criticism of Goldman by Paul Krugman the professor Nobel laureate.He has criticised the Goldman . Heading for his article was Joy of Sachs as nation being porked by Goldman business model and we are allowing it to do so .I hope Obama administration is consulting him in finding solutions to this problem.

Last week in a news item was reported that how fast computers favor investment houses who make money in day trading by giving them advantage over small investors.I have never understood how nation benefits by allowing these companies allow trading in the share many time in the same day. Stock market is to create liquidity in the equity markets and not to create unnecessary volatility.

NOW THE FINAL QUESTION; WHAT IS THE MORAL DUTY OF PEOPLE LIKE mr BUFFETT TO INVEST WITH WELFARE OF AMERICA IN MIND.

He can take a stand much more magnanimous than any other investor as he does not need to prove anything and money is just to keep the score.