1. Mediaite
  2. Gossip Cop
  3. Geekosystem
  4. Styleite
  5. SportsGrid
  6. The Mary Sue
  7. The Jane Dough
  8. The Braiser
Advertisement

Soledad O’Brien Quizzes Former CEO Jack Welch On GE’s Tax Situation

video
» 65 comments

On CNN’s Starting Point Friday morning, host Soledad O’Brien interviewed former GE CEO Jack Welch and his wife Suzy. At one point, the morning show anchor caught Welch completely off-guard when she asked him why GE paid no federal taxes.

“There was lots of uproar about GE’s tax bill,” O’Brien observed. “The company, GE, reported worldwide profits of $14.2 billion and said $5.1 billion of the total came from its operations in the US. Its American tax bill, none. GE claimed a tax benefit of $3.2 billion. So I think it’s hard for people who are not, you know, tax attorneys to understand how a major company can make $5.1 billion here in the United States, and then get a really large tax benefit at the end of the day. Can you explain that?”

“Well, probably not well enough,” Welch quipped.

RELATED: At NBC News, General Electric Tax Story Not Deemed Newsworthy

Welch didn’t seem to have an answer prepared for O’Brien’s politically-loaded question.

“But I can tell you this,” he continued. “I retired ten years ago but from what I know; General Electric’s tax bill was impacted dramatically by the heavy losses it took in the financial sector in 2008 and 2009 and that carried over to the 2010 tax bill.”

Welch obviously didn’t want to dwell on the GE’s controversial tax situation and quickly switched subjects to Jeremy Lin and a pretty stellar Reuters article the two authored about how to “liberate your bench” and utilize the Jeremy Lins of the business world.

Last year, the New York Times reported that many people were upset with GE’s cozy tax situation.

“In a rational system, a corporation’s tax department would be there to make sure a company complied with the law,” said Len Burman, a former Treasury official who now is a scholar at the nonpartisan Tax Policy Center. “But in our system, there are corporations that view their tax departments as a profit center, and the effects on public policy can be negative.”

Watch O’Brien’s interview with the Welch duo below, courtesy of CNN:

Follow us on Twitter.

Sign up for Mediaite's daily newsletter.

Email Twitter Facebook Digg Reddit Stumble Upon Yahoo Buzz LinkedIn Tumblr Delicious
  • http://pulse.yahoo.com/_YWFDEUNHJL2ONLFFYRWN3VDJMY rickm

    The headline is not even close to the reality of the clip.

  • Anonymous

    Who cares about taxes?  The fact that that crotchety old man is sitting next to that much younger woman is proof enough that our system needs some retooling.

  • Anonymous

    Back when GE owned MSLSD, their taxes were held low as long as MSLSD delivered the “correct message”.

    http://i101.photobucket.com/albums/m70/hugh_jardohn/Anchors.jpg

  • Anonymous

    She’ll grill someone who left GE a decade ago (and who has happened to of criticized Obama’s financial policies) but she wouldn’t dare ask GE’s current management tough questions.  

  • Anonymous

    Its good to see that such a lovely young women such as Suzy can find true love with an older man such as Jack.  I’m sure if Jack lost his fortune tommorrow..Suzy wouldn’t care one bit…

  • Anonymous

    Thanks’s to the Politicians of both parties who are heavily influenced by lobyst money, they have let Big Corporations write their own loopholes to avoid paying taxes.

  • Anonymous

    Another Soledad O’Brien video?

    Someone must who publishes this idiot, must have a crush on her at Mediaite.

    Every day another video, no matter how meaningless.

  • Anonymous

    Soledad, why not ask Obama why he complains about corporations not paying their fair-share of taxes while harboring the current CEO of GE as one of his jobs advisors.

    And Soledad, while you are at it, why not ask Obama why, when he demands that everyone pay their fair-share in taxes, that 47% of Americans pay zero Federal income taxes while the top 10% of wage earners pay 70% of the Federal taxes.

    http://ntu.org/tax-basics/who-pays-income-taxes.html

  • Anonymous

     Is she asking to many gotcha questions for you?

  • Anonymous

     Great to see John Edwards knock-up his campaign worker , ask his advisor to take responsibility for it   as Edwards’ wife lie dying of cancer.

  • Anonymous

    How is it a “gottcah” question when asked of a person who has not worked for GE since 2001?

    Soledad is so stupid, she asked a question about something that happened in 2010 of a guy who left GE in 2001.

  • Anonymous

    The question that should be asked is why GE boosted its 2010 income by over 6% by a pure tax accounting gimmick: In 2010, GE said it had reversed a 2009 decision to remit $2.6 billion in profits to the US and, instead, to invest them “permanently” overseas.  That resulted in a $700,000,000 tax benefit that artificially inflated GE’s earnings.  Its on page 34 of the 2010 Form 10-K.  The SEC should be all over these guys but, then, when you’re politically connected and you learned earnings manipulations — and how to bury them in footnotes — from a Master Manipulator like Jack Welch, I guess you can get away with all kinds of crap.  

  • http://gamewhen.com/ Michael T

     There was a point where I shared your view and wondered why all the ‘promotion’ for Soledad’s program.

    Then I realized that her bookers were doing a better job than most and decided to just sit back and enjoy the ride.

    In other words, she has had some pretty decent guests lately that IMO help justify the many Mediaite videos.

  • http://www.facebook.com/people/Neil-Murphy/100000566621491 Neil Murphy

    Obama announced a crporate tax reform plan yesterday, I wonder if it would benefit GE?

  • Anonymous

    Welch votes republican…  enough said. 

  • http://www.facebook.com/people/Neil-Murphy/100000566621491 Neil Murphy

    Sometimes we look at what is taking place in America and ask “why in the world is Obama doing this” since everything he does and touches seems to make matters worse. This may be a good time to refresh folks memories about the plan, methodology, objectives, and goals of Obama and company.
    Americans must realize that we are in a situation today that we have never been in before – - we have never had a truly EVIL president before. We have been conditioned to discount any possibility of a “conspiracy” when we are actually living in denial of a conspiracy that started decades ago and is playing out right before our eyes as we refuse to take the required action against it because we would like to think it can’t happen in our America:
    (1)          Destroy America as we have known her in every arena possible – to remake America on a Godless foundation;
    (2)          Remove all Christian Influence in America & promote Islam & Godlessness;
    (3)          Destroy Capitalism and replace it with Communist Socialism;
    (4)          Destroy our political & financial influence capability in the world since our military cannot be defeated – they can ONLY defeat America from within;
    (5)          Create the appearance that NOTHING in America works anymore – Economy – Political System – Education – Healthcare – Military – Traditional Families – Marriage – Communications – Media – the Legal System – our Constitution – the Jury System – Childrearing – The Church, etc.;
    (6)          Destroy the dollar, the markets, and our economy as much as possible – leaving only the Federal Government for people to depend on as the only entity that can print more money;
    (7)          Keep America dependent on oil, products, & services provided by our enemies which are financially supported by our purchase of the products, services, & resources we discovered, created,  and developed because their systems were incapable of doing so;
    (8)          Get as many people working for or dependent upon the Federal Government as possible – including UNIONS which in many cases are an extension of a Socialist government;
    (9)          Create disharmony by allowing massive immigration into America by people who do not seek to assimilate but to conquer & retake thus creating social unrest in an otherwise peaceful American culture;
    (10)        Force minority ideas and beliefs upon Americans under the guise of “Freedom & Tolerance” like Is lam which neither respects our Constitution or the concept of Freedom of Religion while demanding the same freedom in order to gain power through infiltration & invasion;
    (11)        Remove wealth from citizens since wealth is power & all power must be in the hands of a few and government – much like the Party Elite of the USSR, as with GE making BILLIONS and paying no taxes and UNIONS being given the assets of auto companies which are taken from the stockowners after the unions drive the companies into the ground;
    (12)        Overextend everything including our military, social services, healthcare;
    (13)        Follow Liberal Christian Leaders who have led to the demise of the influence of Christianity in our Society, in Government, and in Business while they promote a distorted view of “Freedom of Religion” and “Separation of Church and State” which denies the Christian Foundation upon which America is built and denies God’s desire and willingness to bless the nation in which His People  “… humble themselves and pray ….”
    The Crisis we see in America today is no accident and it has not come about naturally!
    “The strategy of forcing political change through orchestrated crisis. The “Cloward-Piven Strategy” seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.”
    “Make the enemy live up to their (sic) own book of rules,” Alinsky wrote in his 1989 book Rules for Radicals. When pressed to honor every word of every law and statute, every Judeo-Christian moral tenet, and every implicit promise of the liberal social contract, human agencies inevitably fall short. The system’s failure to “live up” to its rule book can then be used to discredit it altogether, and to replace the capitalist “rule book” with a socialist one.
    “Their strategy to create political, financial, and social chaos that would result in revolution blended Alinsky concepts with their more aggressive efforts at bringing about a change in U.S. government. To achieve their revolutionary change, Cloward and Piven sought to use a cadre of aggressive organizers assisted by friendly news media to force a re-distribution of the nation’s wealth.”
    “By crisis, we mean a publicly visible disruption in some institutional sphere. Crisis can occur spontaneously (e.g., riots) or as the intended result of tactics of demonstration and protest which either generate institutional disruption or bring unrecognized disruption to public attention.”
    In 2012, we must defeat Socialism, Communism, Statism, Humanism, Internationalism, Marxism . . . all of which support Obama. Failing to defeat the Obama machine may mean that we lose America for our children and grand children.

  • http://gamewhen.com/ Michael T

     Perhaps you haven’t noticed.

    Soledad’s show leans left much like Fox & Friends leans right.

  • Anonymous

     Soledad does lean left she falls on the floor left. The jet she flies in has two left wings.

  • Anonymous

    he wants a territorial tax system like mitt, meaning let the big corporations bring their 1.5 trillion back from overseas tax free to distribute it to jack and the other “job creators” who if we’re lucky might hire a new employee to shine another new bentley!

  • Anonymous

    Unfortunately I do see Obama having a second term….that said,,,during that second term I would like to see investigations into the symbiotic relationship between GE and the Obama Administration.

    GE received bail out money while producing record profits and shipping thousands of jobs and technology to China,,,,while Jeff Immet is “jobs czar”…not to mention the fact that MSNBC appears to be nothing more than a propoganda machine for the Obama White House
    Even though MSNBC is now minority controlled by GE this relationship is too cozy and must be investigated
    As an independent voter this greatly concerns me

  • Just some Blow Hard…

     The power of the free market right there…

  • Just some Blow Hard…

     He was on Morning Joe quite a bit when GE owned the place.

  • Just some Blow Hard…

     *rim shot*

  • Just some Blow Hard…

     wanna know the difference between Newt and Edwards?  Edwards wife died.

  • Just some Blow Hard…

     so he owns no stock and doesn’t sit as an advisory of the board???

  • Just some Blow Hard…

     BURN THE WITCH!!!

  • Just some Blow Hard…

     stop with the essays…

    Here, write them here and link.

    http://www.wordpress.com
    http://www.tumbler.com

  • Anonymous

     And John contributed to her death.

  • Anonymous

    Nice irrelevant comment. GE has a CEO for a reason.

    And he isn’t on the BOD.

    Try again.

  • Anonymous

     Now that’s a plan!

  • Just some Blow Hard…

    So that means Newt gets off scott free? What about John Ensign?

    Oh wait it is only bad when a democrat does it. I see.

  • Anonymous

     Ensign had a child out of wedlock? Link

  • Anonymous

     Ahh, Newt is NOT about to be on trial for federal charges.

    Try again. You are losing pretty badly.

  • Just some Blow Hard…

    Wow, politicians are scumbags huh? I forgot that Newt was honest enough enough to ask for a divorce while she was in the hospital. Also apparently asked his second wife too.

    Oh wait, all politicians are scumbags? Or just the ones you disagree with? I am not defending anyone, I actually thought Edwards was a douche long before this story broke. I just find it funny that people point out this in others, while ignoring the ones they like. Kinda like you do.

  • Just some Blow Hard…

    Read his retirement package and learn how the corporate world works. No one bought him out, like AOL did to Ted Turner. He still has great influence, though not over day to day activities. Read “The Late Shift” to see how much he influences GE.

  • Anonymous

    She turned me into a newt! (not gingrich)

  • Just some Blow Hard…

    I never said he did, but apparently that is worse than saying to a underling “Pimp your wife to me and I will get you a good lobbying gig.”

    Read about it here
    http://en.wikipedia.org/wiki/John_Ensign_scandal
    Yeah it is wiki, but it is the only article that has the timeline. No good guys or victims in that story. Maybe except the people of Nevada.

  • Just some Blow Hard…

    Yes that would be worse…

    This is funnier though

    http://youtu.be/MIaORknS1Dk

  • http://www.facebook.com/people/Neil-Murphy/100000566621491 Neil Murphy

    thank you.

  • http://www.facebook.com/people/Neil-Murphy/100000566621491 Neil Murphy

    There is certainly worse on MSNBC. Pelosi on Maddow was revolting as hell, and completely disconnected from reality. I feel for people who believe that fiction

  • Just some Blow Hard…

    No Newt was on trial and lost. That is why he is a former speaker.

  • http://www.facebook.com/people/Neil-Murphy/100000566621491 Neil Murphy

    Oh wwe know what Newt did, if wedidnt have a monster in th white house we would kick Newt to the curb in a second. But really Obama makes newt look cleaner with every 100billion dollars he gives away to his friends.

  • Anonymous

    Part of the problem in DC is the revolving door of public to private employment. There are many cases and it is a serious issue. Our one time secretary of defense Mr Cheney, hired Haliburton to study if many functions in the US military should be done by private for profit enterprise. Then he went to work for them as a highly paid executive, then left that job a few years later with severance package worth millions, to run for vice president.
    Just the potential of a conflict of interest should have disqualified him as a candidate but it didn’t. Then he advocated for a war with Iraq that made Haliburton billions.

    It isn’t just GE and their relationship to government that needs to be investigated. It’s a corrupt system that has existed for years

  • Anonymous

    Blind partisan ignorance is also the enemy of this country. 

  • Anonymous

    In total agreement my man,,,its both parties beholden to a system that benefits a few at the cost of the many

  • Anonymous

    Jack Welch, please stop smiling randomly. It is literally the creepiest thing in the world.

  • Anonymous

    Yes agree.  She’s hardly the brightest crayon in the box.

  • Anonymous

    Because ms O’Brien would never get another interview or even suggest another question of the Suprement Socialist or Mad Marxist….take your pick our President is both..

  • Anonymous

    It really doesn’t benefit anyone.  All would wind up paying more in taxes for foreign profits. And dividend tax would go through the roof.  Everyone loses.

  • Anonymous

    Agreed. Any chance that screen name refers to picking the banjo, or is it a bass. 

  • Michael Trout

    right, like welch is going to tell you the truth about GE’s taxes -  this is for the suckers.

  • Anonymous

    He should have asked Soledad to explain a CNN decision from a decade ago, and see how she did?  

    Honestly, is Soledad has dumb as she seems, or does she just show up without doing any research?   I really don’t get it.   You can tell Erin Burnett does a ton of research and they both work on the same network.   

  • http://pulse.yahoo.com/_HNH5FOIRNPH4YGMWM3QR5PEHFI Lighthouse

    Soledad is brainless or brain dead? Hard to figure out which one

  • Anonymous

    bass,,,,,i play 6 string almost exclusively these days but that name was taken by some shredder guitarist

  • Anonymous

    I am sure some of you anti-birthers might like to learn that the brother of a well-known birther is heading the tech community behind the Trust the Vote open source digital voting project. Here he is: http://www.flickr.com/photos/opengov/3292627731/

    And here is the story: http://obamasgarden.wordpress.com/2012/02/18/answers/ 

  • http://pulse.yahoo.com/_U7T5LVIQK7AMIBM5WI765VDVDQ smald4lib

    One half of GE is a commercial bank, that’s why it got a $100 billion bailout from you the tax payers, and then when it made a profit it paid no taxes. And the home owners are having to lose their homes becasue they can’t renegotiate their upside down home loans. Now do you get why people are in the streets? The criminals are running system for their own profits and they wear white shirts and live in the Hampton’s. Not one banker has gone to jail yet.

  • http://pulse.yahoo.com/_U7T5LVIQK7AMIBM5WI765VDVDQ smald4lib

    no, it’s Viagra and you can get it on the black market along with the hookers..

  • Anonymous

     How about both?

  • Anonymous

    Ah, where did he go on national TV and lie to America? Where did he pay someone off to take blame for his acts?

    Man, you lost big time. Your name is very fitting.

  • Anonymous

     I caught you lying. Again. You said he was on the BOD and he is not. Nice try to change the subject from your lie. That’s your pattern – lie and then change the subject.

    BTW, Welch was named “Manager of the Century.”

  • http://www.facebook.com/tonykoch1 Tony Koch

    the question is does Soledad Quiz people while she is grilling them?

  • Anonymous

    Are you a victim of head trauma? Paranoid schizophrenia? Fetal alcohol syndrome?

  • http://gamewhen.com/ Michael T

    Notice that Welch was able to answer her question about the year GE paid no corporate taxes.

    This kind of undermines some of the criticism that Soledad was being silly to ask Welch about GE when he retired years ago.

  • Anonymous
  • Anonymous

    Seems to me its proof that it works. Where will you be in (fill in the blank) years?

© 2012 Mediaite, LLC | About Us | Advertise | Newsletter | Jobs | Privacy | User Agreement | Disclaimer | Power Grid FAQ | Contact | Archives | RSS RSS
Dan Abrams, Founder | Power Grid by Sound Strategies | Hosting by Datagram