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The 24,000-page tax return
June 2, 2006 - I hope that you will take a look at the AP news story released yesterday that commented on General Electric's recent 24,000-page tax return. GE filed the return electronically using new software that reported cost nearly $1 million, but GE representatives reported that the electronic filing would save millions (plural) over the old paper process.
The free market works. If company can save many millions by spending one, it will do it. But the bigger question is, "What kinds of distortions is our tax system causing in the free market if millions can be saved by a single company with this single change?" If millions can be saved, many more millions must currently be being spent. These millions produce nothing and yet directly burden our domestic manufacturers trying to compete with their competition overseas.
Will all of GE's compliances costs disappear under FairTax? Maybe not all of them, but I am certain that GE's 24,000-page, 8-foot tall tax return would be a thing of past.
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