This passage from the following news report is of interest
“General Electric and Citigroup, for instance, hired Breaux and Lott to extend a tax provision that allows multinational corporations to defer U.S. taxes by moving profits into offshore financial subsidiaries. This provision— known as the "active financing exception"— is the main tool GE uses to avoid nearly all U.S. corporate income tax.” If accurate this tax avoidance strategy described in the report represents anther component of the erosion of U.S. sovereignty. In this instance it represents the growing inability of the state to effectively tax multinational corporations. It also ties into the initial concepts of plutocratic insurgency mentioned earlier at SWJ.
Timothy P. Carney
2 January 2013
The "fiscal cliff" legislation passed this week included $76 billion in special-interest tax credits for the likes of General Electric, Hollywood and even Captain Morgan. But these subsidies weren't the fruit of eleventh-hour lobbying conducted on the cliff's edge— they were crafted back in August in a Senate committee, and they sat dormant until the White House reportedly insisted on them this week.