As I'm hearing it, GE reduced their tax bill by carrying forward losses in addition to R&D credits (as well as offshoring profits).

In other words, you have to look at the long-term view. If GE loses a few billion dollars in one year, they can 'make' a few billion over the next years before they start paying taxes.

Individuals are allowed to do this as well. When I paid several thousand dollars to get my ex-wife's business started, I was able to write the losses off my taxes until we started making money.

When I lost $27,000 in a private company, I was allowed to write off $3,000 of my 'regular' income per year.

All is not what it seems. Though I'd like to hear more details of GE's situation - the chairman has been on a few news shows and doesn't seem to have a "hide in the bunker" mentality.

Heck, locally, a vacant GE factory in the Boston area might be re-opened because the locomotive manufacturing plant they have in Erie PA has too many orders. That would certainly be good news.