Linked by Thom Holwerda on Tue 21st May 2013 21:45 UTC
Legal "There's a disconnect between how Apple CEO Tim Cook sees his company's tax strategies and how some members of the US Senate view it. That became clearer than ever today after Cook and two other Apple executives testified before Congress, explaining why they're holding most of their international income in Irish subsidiaries like Apple Operations International, which declare no tax residency anywhere in the world. AOI hasn't filed a tax return anywhere in the world for the last five years, yet it earned $30 billion in income from 2009 to 2012, according to a Senate report released yesterday." Just because something is legal, doesn't mean it's just. Apple, Google, Microsoft, and many more - these companies might not be breaking any laws, but it's obvious to anyone that what they are doing is scummy.
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RE: Not an Apple Fan
by TM99 on Fri 24th May 2013 11:53 UTC in reply to "Not an Apple Fan"
TM99
Member since:
2012-08-26

Every one seems to be spouting some Randian Libertarian 'don't tax' me bullshit but is completely avoiding the real numbers involved here.

The corporate tax rates in America starts at 15% for a business making up to $50,000. The highest tax rate is 35% for a business making above approximately $18,000,000. Through lobbying efforts, shell corporations, off shore banking, etc. almost all corps making above $18,000,000 (this includes Apple) are paying only an effective tax rate of 12.1%.

So yes, Apple is a scummy sociopathic entity. Whether Congress allowed this to happen or not is irrelevant. Apple and others pay less corporate tax in a year than businesses making $50,000 or less. And those businesses get no where near the tax havens and deductions that these mega global corps achieve. So they are paying their fair share while Apple and others are not.

Now let's compare this further to the individual income tax rates. 15% falls for individuals and families making roughly $10,000 to $40,000. 35% falls for individuals and families around the $400,000 mark. Again these individuals and families have less power to reduce their tax rates legally and end up paying close to those rates. They may be able to effectively lower them by 5 to 10% tops.

So Apple pays an effective corporate tax rate of about 12.1% and someone making up to $40,000 a year pays about the same.

OK, when revenue is short, because the dumb ass Republicans and Democrats love their wars abroad and have drained the treasury, then to balance the federal budget something has to be done. Well, we can't cut the MIC as that keeps the War on Terrah going strong. We can't penalize the poor little corporations because god knows they give sooooo fucking much the country that gives to them.

No, what is left is the individual and the family. We can't raise their taxes near enough to cover it all, so austerity measures begin. We play chained CPI games with Social Security. We cut billions in food stamp programs. We create Obamacare which is a pay out to the insurance corporations instead of giving the American population health care like all other civilized nations in the world have. We push through sequesters and cut science grants and arts endowments.

All the while the idiots scream, don't tax me man. Don't take my guns. We watch the kabuki theater of this sham panel on Apple. One congress critter saying it is a damned shame Apple is allowed to do this. An another congress critter says it is a damned shame that the government is upset at poor little successful Apple. They deserve to be 'demonized'. They don't deserve any further tax breaks or incentives. It won't happen because your last paragraph is simply wrong. The government and the corporations are just a revolving door with both sides scratching each others backs while the rest of us poor schmucks work our asses off, follow the rules, pay our fair share, and then let there propaganda make us fight amongst ourselves.

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