This provision allows multinationals to move profits to offshore financial subsidiaries and thus avoid paying U.S. corporate income taxes. This is a windfall for GE: The exception played a central role in GE paying $0 in U.S. corporate income tax in 2011 when it made $5.1 billion in U.S. profits.
The special-interest tax breaks Obama demanded look to be bigger than the money he raised by taxing the rich. If he had just let all these special tax breaks expire — like wind tax credits, algae subsidies, and railroad track maintenance — it would have raised more revenue than his tax hikes on rich individuals and small businesses.
What Immelt is forgetting that the Chinese Communist system only started becoming viable when it junked the Communist part and became a conventional oligarchy. And when America started becoming Communist and destroyed its own manufacturing making it possible for China’s Communist Party feudal lords to cash in by dumping cheap badly manufactured products on America