US mainstream media fooled by fake GE statement
Wed Apr 13, 2011 7:11PMShare | Email | Print
The American mainstream media falls for a fake statement attributed to General Electric which claimed the giant has decided to donate the exact amount of tax returns it received to the U.S. Treasury.
The Associated Press was among the mainstream outlets fooled by the fake statement.
Facing public outcry over this revelation, the company has decided to take an unprecedented route, pledging to donate its entire $3.2 billion tax return to the U.S. Treasury, the AP wrote on Wednesday morning.
However, it turns out that it's not true -- and the whole embarrassment could have been avoided with a phone call.
"All seven of our foreign tax havens are entirely legal," a fake media advisory, published to a website not affiliated with GE, claimed CEO Jeffrey Immelt had said. "But Americans have made it clear that they deplore laws that enable tax avoidance.
It continued, "while we owe it to our shareholders to use every legal loophole to maximize returns - we also owe something to the American people. We didn't write the laws that let us legally avoid paying taxes. Congress did. But we benefit from those laws, and now we'd like to share those benefits."
The fake release added that GE's move should serve as an "example" for other U.S. corporations.
It also stated that GE would "conduct a nation-wide survey" to determine how the $3.2 billion should be spent. They specifically singled out recent budget cuts issued by Congress, with the release suggesting Americans should discuss which of the budget cuts they'd like to see reversed.
Jeff Immelt has of late been under intense rhetorical fire after President Barack Obama selected him to lead the U.S. Council on Jobs and Competitiveness. He'd previously served on the president's economic recovery advisory board.
"Jeff's somebody who brings a wealth of experience to the table," Obama said of the CEO. "We think GE has something to teach businesses all across America." Raw Story
HIGHLIGHTS
It was not clear who was behind the hoax, but the tactic seemed to mirror prior stunts pulled by activist/theater troupe "The Yes Men" who create fake websites and stage events to impersonate corporate spokespeople in hopes of fooling mainstream media. They say their stunts are aimed at encouraging major corporations to do the right things. Raw Story
Andrew Boyd, member of "The Yes Men," tells news wire service Reuters that they were responsible for the hoax. Raw Story
"This is unpatriotic, it's undemocratic, it's unfair," Boyd reportedly said, regarding GE's use of tax shelters. "It might be legal but it's immoral." Raw Story
A GE spokesperson confirmed that the company did not receive a tax refund this year. Raw Story
In 2009, "The Yes Men" released "The Yes Men Fix the World" a feature-length film detailing their exploits. Raw Story
"Someone like Immelt, who has helped his company evade taxes on its huge profits -- and is now looking to workers to take major pay cuts after his compensation was doubled -- should not lead the administration's effort to create jobs," former Sen. Russ Feingold (D-WI) said late last month "We shouldn't reward wealthy CEOs and Wall Street for behavior that undermines the nation's economy." Raw Story
FACTS & FIGURES
GE earned $5.1 billion in profits in America in 2010, in addition to another $9.1 billion it made overseas. But it paid nothing to the IRS. Instead, it enjoyed tax breaks totaling $3.2 billion. Allgov.com
A review of company filings and Congressional records shows that one of the most striking advantages of General Electric is its ability to lobby for, win and take advantage of tax breaks. The New York Times
General Electric reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Allgov.com
In 2009 and 2010, GE closed 28 manufacturing plants in the United States and it now employs more people overseas than it does in the U.S. Allgov.com
Half of GE's revenues come from the production of industrial, commercial and medical machinery and equipment. Providing loans accounts for another 30%. Allgov.com
The share of U.S. taxes paid by corporations has fallen from 30 percent of federal revenue in the 1950s to 6.6 percent in 2009. CBSNEWS
:142smilie :142smilie :142smilie
Wed Apr 13, 2011 7:11PMShare | Email | Print
The American mainstream media falls for a fake statement attributed to General Electric which claimed the giant has decided to donate the exact amount of tax returns it received to the U.S. Treasury.
The Associated Press was among the mainstream outlets fooled by the fake statement.
Facing public outcry over this revelation, the company has decided to take an unprecedented route, pledging to donate its entire $3.2 billion tax return to the U.S. Treasury, the AP wrote on Wednesday morning.
However, it turns out that it's not true -- and the whole embarrassment could have been avoided with a phone call.
"All seven of our foreign tax havens are entirely legal," a fake media advisory, published to a website not affiliated with GE, claimed CEO Jeffrey Immelt had said. "But Americans have made it clear that they deplore laws that enable tax avoidance.
It continued, "while we owe it to our shareholders to use every legal loophole to maximize returns - we also owe something to the American people. We didn't write the laws that let us legally avoid paying taxes. Congress did. But we benefit from those laws, and now we'd like to share those benefits."
The fake release added that GE's move should serve as an "example" for other U.S. corporations.
It also stated that GE would "conduct a nation-wide survey" to determine how the $3.2 billion should be spent. They specifically singled out recent budget cuts issued by Congress, with the release suggesting Americans should discuss which of the budget cuts they'd like to see reversed.
Jeff Immelt has of late been under intense rhetorical fire after President Barack Obama selected him to lead the U.S. Council on Jobs and Competitiveness. He'd previously served on the president's economic recovery advisory board.
"Jeff's somebody who brings a wealth of experience to the table," Obama said of the CEO. "We think GE has something to teach businesses all across America." Raw Story
HIGHLIGHTS
It was not clear who was behind the hoax, but the tactic seemed to mirror prior stunts pulled by activist/theater troupe "The Yes Men" who create fake websites and stage events to impersonate corporate spokespeople in hopes of fooling mainstream media. They say their stunts are aimed at encouraging major corporations to do the right things. Raw Story
Andrew Boyd, member of "The Yes Men," tells news wire service Reuters that they were responsible for the hoax. Raw Story
"This is unpatriotic, it's undemocratic, it's unfair," Boyd reportedly said, regarding GE's use of tax shelters. "It might be legal but it's immoral." Raw Story
A GE spokesperson confirmed that the company did not receive a tax refund this year. Raw Story
In 2009, "The Yes Men" released "The Yes Men Fix the World" a feature-length film detailing their exploits. Raw Story
"Someone like Immelt, who has helped his company evade taxes on its huge profits -- and is now looking to workers to take major pay cuts after his compensation was doubled -- should not lead the administration's effort to create jobs," former Sen. Russ Feingold (D-WI) said late last month "We shouldn't reward wealthy CEOs and Wall Street for behavior that undermines the nation's economy." Raw Story
FACTS & FIGURES
GE earned $5.1 billion in profits in America in 2010, in addition to another $9.1 billion it made overseas. But it paid nothing to the IRS. Instead, it enjoyed tax breaks totaling $3.2 billion. Allgov.com
A review of company filings and Congressional records shows that one of the most striking advantages of General Electric is its ability to lobby for, win and take advantage of tax breaks. The New York Times
General Electric reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Allgov.com
In 2009 and 2010, GE closed 28 manufacturing plants in the United States and it now employs more people overseas than it does in the U.S. Allgov.com
Half of GE's revenues come from the production of industrial, commercial and medical machinery and equipment. Providing loans accounts for another 30%. Allgov.com
The share of U.S. taxes paid by corporations has fallen from 30 percent of federal revenue in the 1950s to 6.6 percent in 2009. CBSNEWS
:142smilie :142smilie :142smilie
