Letter to the Editor: "Yankee Stadium is in the Bronx"

The Times-Union (Albany, NY)

April 10, 2011 Sunday

To the Editor:
This is in response to your column "New York Fans Pay Double" by Norman Chad in your April 5 newspaper.

Mr. Chad says that GE made $14 billion in profit and "paid absolutely nothing in federal taxes." According to page 66 in the GE Annual Report, Audited Financial Statements, GE had $11.644 billion in profit worldwide. Profits made in other countries pay the taxes due under the laws of those other countries. From GE Reports (http://www.gereports.com), "GE paid almost $2.7 billion in cash taxes in 2010." Admittedly these taxes were mostly paid in other countries where GE showed a profit.

In the U.S. (also from GE Reports): "Significant losses at GE Capital overall tax rate." In the U.S. we pay income taxes and corporate income taxes on profits, obviously due to the economy and the $1.741 billion loss from U.S. mortgages in in 2010 (p. 41), GE had no U.S. profits, and therefore had no U.S. corporate income tax.

Bottom Line: GE had no profit in the U.S. in 2010 and therefore had no U.S. corporate income tax.

Chad goes on to say: "...the new publicly funded Yankee Stadium -- building palaces on the backs of taxpayers is the latest American dream," is also very distorted.

Yankee Stadium is obviously located in New York City, the highest income tax city in the nation. Since Yankee Stadium is in the Bronx, all of the staff, vendors, players, owners, etc., are subject to New York City and New York state taxes rather than cheaper rates at the Meadowlands. Millions, if not billions, of dollars of sales tax are collected on the ticket sales, advertising, programs, T-shirts, sodas, hot dogs, etc., all of which goes right into the city and state pocketbook. Also, I don't know for Yankee Stadium, but for many publicly owned stadiums, the municipality keeps all the parking fees, concession rentals, and fees for advertising on stadium property since they own the stadium. They also collect income tax and sales tax from all the surrounding restaurants, as well as bridge tolls and subway charges. Most municipally owned stadiums at least break even if not show a profit.

Mr. Chad, as well as some of your other writers, seems to frequently present a biased opinion as news.

Peter Hess
Albany