Lowering the corporate tax rate but eliminating a lot of the special deductions exemptions and credits "absolutely means GE's tax rate would go up," according to Wilkins. "I mean there's no place for it to go but up. GE might publicly say that it's all for tax reform but will they actually support it when it goes through Congress? I suspect they won't. I bet they'll have an army of lobbyists in there trying to fight the tax reform."
Robert Willens, tax consultant with Robert Willens LLC agreed with Wilkins that "if we eliminated loopholes and went to a territorial system GE would probably be paying more taxes than it is today."
However, he isn't convinced GE is being disingenuous when it says it want to close loopholes.
"Maybe they do feel that way. That if things were simplified and the rates were lower and we were territorial, there wouldn't be nearly as much need on their part to manage their tax position. They could get on with the business of doing other things," Willens says.-- Written by Dan Freed in New York. Follow this writer on twitter.