Read

User menu

Search form

General Electric Won't Pay Taxes – While Its CEO Blows $343,000 on Travel Expenses

General Electric Won't Pay Taxes – While Its CEO Blows $343,000 on Travel Expenses
Tue, 5/6/2014 - by Alan Pyke
This article originally appeared on Think Progress

Corporate CEOs are back to using company jets for personal travel after the practice dipped briefly following the financial crisis, Bloomberg reports.

“Non-business travel expenses” increased for the third straight year, and the 10 largest S&P 500 companies that Bloomberg scrutinized spent 61 percent more last year on personal travel using corporate jets than they did in 2012. The costs rose 3.1 percent for the 50 largest companies that disclosed the relevant figures.

General Electric spent over $343,000 flying CEO Jeffrey Immelt around for personal travel on the company plane last year. Immelt made $19.7 million in 2013, according to Executive Paywatch.

Casino mogul Steve Wynn earned $19.6 million, and billed Wynn Resorts Ltd. about $927,000 in personal travel on the corporate jet. (The Wynn Resorts board did, however, force Wynn to start paying the $525,000 annual rent price for his Las Vegas house out of his own pocket last year.)

Corporations shoulder their top employees’ vacation expenses in part to make sure CEOs can hurry home if something urgent arises during their leisure time. Companies like Halliburton and Boeing even require CEOs to use corporate planes for such travel.

Immelt and Wynn are also required to fly on company planes. Regardless of the business rationale, the practice effectively increases executive pay and in many cases even reduces tax liability for CEOs.

The resurgence of perks like this signals that the decline of corporate jet spending that followed the financial crisis was just a brief moment of public shaming and not a lasting shift in corporate culture. In the immediate wake of the crisis, companies cut personal use of corporate planes by about a third.

The heads of bailed-out companies were famously blasted by lawmakers for using corporate jets to fly in for congressional hearings. A tax write-off for the planes became a totem for critics of corporate welfare, including President Obama.

But like corporate pay, investment earnings for the wealthy, and Wall Street profits, company jets are roaring back from the recession much faster than economic indicators relating to middle- and low-income families and workers.

Wages continue to stagnate. The ratio of CEO pay to worker pay continues to expand across the economy, peaking at over 1,200-to-1 in the fast food industry. And huge proportions of the population are unable to afford their rent or avoid living paycheck to paycheck.

Originally published by Think Progress

3 WAYS TO SHOW YOUR SUPPORT

ONE-TIME DONATION

Just use the simple form below to make a single direct donation.

DONATE NOW

MONTHLY DONATION

Be a sustaining sponsor. Give a reacurring monthly donation at any level.

GET SOME MERCH!

Now you can wear your support too! From T-Shirts to tote bags.

SHOP TODAY

Sign Up

Article Tabs

Agriculture, the service economy, sexual exploitation, manufacturing, construction and domestic work drive today's enslavement around the world.

Thanks to the Electoral College, leftists have perhaps the final say this November over whether democracy can hold on for at least another four years, or if fascism will take root and infect all facets of the federal government for decades to come.

What remains unknown is whether post-truth Republicans will succeed in 2024 as the Nazis did in 1933.

Based on details that have emerged about Trump’s presidential agenda, the far-right Heritage Foundation plans for the next GOP president to have all the tools necessary to demolish multicultural democracy and establish a white, Christian ethnostate that imposes a gender apartheid not unlike the Taliban’s Afghanistan.

Donald Trump, Hitler

Like Hitler, Trump has a unique command of propaganda, a captivating public presence, and he knows how to drive home narratives beneficial to him and harmful to his enemies.

Agriculture, the service economy, sexual exploitation, manufacturing, construction and domestic work drive today's enslavement around the world.

Thanks to the Electoral College, leftists have perhaps the final say this November over whether democracy can hold on for at least another four years, or if fascism will take root and infect all facets of the federal government for decades to come.

History shows there are no “one-day” dictatorships. When democracies fall, they typically fall completely.

What remains unknown is whether post-truth Republicans will succeed in 2024 as the Nazis did in 1933.

Based on details that have emerged about Trump’s presidential agenda, the far-right Heritage Foundation plans for the next GOP president to have all the tools necessary to demolish multicultural democracy and establish a white, Christian ethnostate that imposes a gender apartheid not unlike the Taliban’s Afghanistan.

Based on details that have emerged about Trump’s presidential agenda, the far-right Heritage Foundation plans for the next GOP president to have all the tools necessary to demolish multicultural democracy and establish a white, Christian ethnostate that imposes a gender apartheid not unlike the Taliban’s Afghanistan.

Posted 1 month 3 weeks ago

Thanks to the Electoral College, leftists have perhaps the final say this November over whether democracy can hold on for at least another four years, or if fascism will take root and infect all facets of the federal government for decades to come.

Posted 1 week 6 days ago

What remains unknown is whether post-truth Republicans will succeed in 2024 as the Nazis did in 1933.

Posted 1 month 1 week ago

History shows there are no “one-day” dictatorships. When democracies fall, they typically fall completely.

Posted 2 weeks 1 day ago

Agriculture, the service economy, sexual exploitation, manufacturing, construction and domestic work drive today's enslavement around the world.

Posted 6 days 2 hours ago

History shows there are no “one-day” dictatorships. When democracies fall, they typically fall completely.