Author Topic: Trump tax plan compounds $6.2 billion blow from GE insurance troubles  (Read 649 times)

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Trump tax plan compounds $6.2 billion blow from GE insurance troubles

by James Langford | Jan 16, 2018, 2:03 PM
 

A Republican tax overhaul designed to bolster the U.S. economy is, for now, simply adding to the financial challenges facing General Electric, one of the country's largest manufacturers.

The Boston-based company expects a charge of $3.4 billion from the Tax Cuts and Jobs Act for the last three months of 2017, primarily related to a one-time levy on overseas holdings and the revaluation of tax breaks related to prior-year losses. That will compound the blow from a $6.2 billion charge related to rising liabilities at a life and health insurance business whose policyholders are growing older and sicker.

The difference, ultimately, is that the tax bill will provide benefits, executives said. The insurance charge is just one more hit from a business GE entered in the 1980s and has been winding down for more than a decade, frustrating new CEO John Flannery's efforts to turn around a historic company grappling with tough markets for some of its biggest manufacturing businesses.

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http://www.washingtonexaminer.com/trump-tax-plan-compounds-62-billion-blow-from-ge-insurance-troubles/article/2646067
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