backtop


Print 75 comment(s) - last by dsumanik.. on May 28 at 5:25 PM


  (Source: Reuters)
Ireland also blasts U.S. criticism of "tax sheltering"

The Democratic-controlled U.S. Senate has turned its attention to Apple, Inc. (AAPL) by focusing on the low effective tax rates paid on the profits hauled in by the tech industry's most profitable firm.  Today as Apple's CEO Tim Cook -- who once suggested Apple has more money than it knows what to do with -- was grilled by Congress on his so-called "Double Irish With a Dutch Sandwich," which allows Apple to cut taxes by directing profits through low-cost Irish subsidiaries, the Netherlands and the Caribbean. However, Irish officials and some U.S. conservatives returned fire.

I. Irish Say Senate's Numbers Are Wrong

Apple's cash pile may grow to $170B USD by the year's end which is about 1 percent of the national debt of the U.S. Officially, U.S. tax rates on corporate profits hover around 18-20 percent after deductions, but Apple is accused of paying far less via using shell companies in low tax regions.

But in an interview with Irish news agency RTE Deputy prime minister Eamon Gilmore slammed accusations of wrongdoing, remarking, "They are issues that arise from the taxation systems in other jurisdictions, and that is an issue that has to be addressed first of all in those jurisdictions." 

A spokesman for Ireland's finance department said the nation's system was fully transparent and statute based.  He stated resolutely that there was "no possibility of individual special tax rate deals for companies."

A spokeswoman for Ireland's Office of the Revenue Commissioners adds, "All companies in Ireland pay the standard 12.5 percent rate on their trading profits arising in Ireland, and they pay a corporation tax rate of 25 percent on their Irish non-trading income."

Apple Operations
Apple Operations Inc. (A.O.I.) in Cork, Ireland reportedly received $29.9B USD in profits between 2009 and 2012, and paid less than 2 percent in taxes. [Image Source: Reuters]

Irish citizens are also defensive about the country's strategy of snagging multinational companies' outposts via low tax rates.  They say the nation's unemployment issues would be worse if it were not for companies like Apple.  Comments one worker to Reuters, "We're a small country and feel we can't say no. We know they'll just go off to one of these Asian countries ... They're a law unto themselves."

Apple maintains a three-story office building in Cork, which is currently receiving a shining new glass-and-steel expansion, funneling money to local builders and contractors.  Apple also directly employs 2,800 in Cork, and has promised to add another 500 employees shortly.

But according to the 40-page Senate memo released before the hearing, Apple hides much of its income in a trio of Irish subsidiaries that have no official tax residency in Ireland.  The Senate memo claims Apple has paid an effective rate of around 2 percent for the last ten years, versus the aforementioned "official" rate of 12.5 percent.  The report claims that between 2009 and 2012 Apple affiliates funneled $29.9B USD in profits -- or roughly 30 percent of profits -- into the Cork subsidiaries.

The average tax rates of the Organisation for Economic Co-operation and Development (OECD) -- whose member states include most of the nations Apple operates in -- had an average tax rate of 24 percent in 2012, yet Apple only paid 1.9 percent that year on its $37B USD in overseas profit that year, thanks to its clever positioning.  The memo comments, "Ireland has essentially functioned as a tax haven for Apple."

Ireland's European Affairs minister Lucinda Creighton claimed the Senate's figure of a 2 percent rate in Ireland was flat-out wrong.  She comments, "There is no such deal. There is no deal for any company to pay 2 percent corporate tax in Ireland - that is erroneous."

But Apple's accounting firm Ernst & Young LLP refused to confirm or deny the number, saying it was confidential information.

II. Conservatives in the Senate Blast Hearings

Scrutiny picked up steam in April 2012, following a report in The New York Times accusing Apple of dodging millions of dollars in taxes in California and 20 other U.S. states (and dodging billions of dollars in taxes worldwide).  Over the past year, British Parliamentarians have held hearings regarding Apple's behavior.

According to their figures Apple pocketed £6B ($9.50B USD) in profit from the British market last year, but paid only £10M ($15.8M USD) in taxes.  Apple in a statement denied it engaged in "tax gimmicks" and said it would pay $7B USD in the U.S. in taxes in fiscal 2013.

The Congressional hearing took place this afternoon.

In the hearing Tim Cook -- accompanied by Apple's Head of Tax Operations Phillip A. Bullock -- admits, "I have no current plan to bring them back at the current tax rate."

On Apple Operation Int'l, Tim Cook said, "[A.O.I.] is nothing more than a holding company — it’s not an operating company.  [A.O.I.] is nothing more than a company that has been set up to provide an efficient way to manage Apple’s cash from income that’s already been taxed.  In my view A.O.I. does not reduce U.S. taxes at all."

Tim Cook
Apple CEO Tim Cook defended his company at the hearing. [Image Source: Reuters]

He says Apple pays tax on profit from every single product it sells in the U.S.

Senator Carl Levin (D-Mich.) remarked, "The only reason you’re not bringing them home is because they were transferred to these three Irish companies.  That’s the reason why they’re there. It’s your decision not to bring those profits home, so now $100 billion plus is stashed away in those three Irish companies that you control but is nonetheless in their legal name. The question is, will you bring them home?"

He points to an Apple subsidiary to paid only $5B USD back to Apple's U.S. operations, but received a reported $74B USD in profit -- a net tax loss of almost $70B USD in taxable income for the U.S.

Sen. Levin suggests Congress should play debt collector, trying to recoup the lost taxes from Apple's cash pile.  And he believes it is possible to do so under the current law.  He comments, "It is possible to penetrate an entity’s corporate structure for tax purposes and to collect U.S. taxes on its income, [if it is shown that a foreign subsidiary is] nothing more than instrumentality of its parent company, a sham."

Some conservatives joined in the fray.  Sen. John McCain (R-Ariz.), a former Republican presidential nominee, remarked that, "Apple has violated the spirit of the law if not the letter of the law."

John McCain
Sens. John McCain (R, right) and Levin (D, left) were not satisfied with Mr. Cook's answers.
[Image Source: AP]

He argued, though, that the onus was on Congress to perform "comprehensive reform" of the tax system.

III. Sen. Paul Wants Apology From Congress, Reform

But Senator Rob Portman (R-Ohio), countered that Apple's South Korean rival Samsung Electronics Comp., Ltd. (KSC:005930) pays the same effective rate as Apple globally -- 14 percent.  But he comments that the real problem is the high tax rate in the U.S. -- he points out that South Korea's lower tax rate allows it to return its profits home.

Villanova University Law School Professor J. Richard Harvey Jr. seemed to echo this perspective in testimony as an expert witness.  While he accused Apple of dodging $7.7B USD in U.S. taxes, he complained that the U.S. tax code makes returning money onerous.  He suggested a "long term solution" of lowering the tax rate on overseas profits returned to the U.S. to 15 percent.

Tim Cook agrees.  In his testimony, he comments, "Unfortunately the tax code has not kept up with the digital age."

One of Mr. Cook's biggest defenders was Sen. Rand Paul (R-Kent.).  He said Apple should be cheered for, not "vilified", remarking, "Money goes where it is welcome.  Everybody talks about tax reform. Just do it."

Sen. Rand Paul
Sen. Rand Paul defended Apple and said Senate Democrats -- as well as some Republicans like Sen. McCain should be ashamed and owe Apple a big apology. [Image Source: The NYT]

On Twitter he posted:

While the debate is unlikely to be laid to rest easily, it should be noted that many other companies like Microsoft Corp. (MSFT) and Google Inc. (GOOG) also shelter money in Ireland.  Google recently came under fire for dodging about $1.6B USD USD (£1B) in taxes by way of the island Bermuda. Google sent £6B ($9.6B USD) through Bermuda over the course of last year, which halved its 2011 tax bill.

Other top companies like Starbucks Corp. (SBUX) and Amazon.com, Inc. (AMZN) also are accused of using Caribbean, European, or Asian tax havens.  Of course, such tactics could be argued to actually be performing a key duty to shareholders -- minimized taxes under the law and maximizing profits.

Sources: The New York Times, Reuters



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

The World's Tax Collector
By Reclaimer77 on 5/21/2013 5:19:28 PM , Rating: 2
Apparently the United States is the tax collector for the entire world.

By what rights is tax revenue owed to the US Government for profits an American company generated oversees?

Apple is just making the most of this mess that it can, as anyone with half a brain would.




RE: The World's Tax Collector
By someguy123 on 5/21/2013 5:33:32 PM , Rating: 5
It's a bulk of their total profits funneled into overseas subsidiaries, including US sales. They aren't generating 70 billion in Ireland alone.


RE: The World's Tax Collector
By Solandri on 5/21/2013 6:05:51 PM , Rating: 4
According to this article, Apple pays an effective 30.5% corporate tax rate for U.S. sales. Very close to the nominal 35% corporate tax rate the U.S. charges (the missing 4.5% is probably due to various deductions).
http://www.forbes.com/sites/connieguglielmo/2013/0...

The problem isn't Apple or other "tax-dodging" companies. It's the U.S. tax code. The U.S. tries to tax everything an American or American company makes, even if it's made overseas. I ran into this when I was working abroad. Canada's tax laws make sense. My Canadian friend who worked in the U.S. only had to pay U.S. taxes (unless he lived in Canada more than half the time).

But I could live in Canada 100% of the time and earn 100% of my money from a Canadian company, and the U.S. would still try to tax my earnings simply because I was a U.S. citizen. This is why you hear about some rich people living overseas giving up their U.S. citizenship. It's not a tax dodge, it's to get the U.S. to stop trying to collect taxes on money that has nothing to do with the U.S. other than the person making it being a U.S. citizen. Fortunately the U.S. and Canada have a tax treaty which allowed me to take a deduction for Canadian taxes paid (essentially reducing my U.S. tax liability to zero since Canadian taxes were higher).

But you can see the problem with the tax definition the U.S. uses - if every country tried to tax the way the U.S. does, then it's possible to owe more than 100% in taxes. Say the U.S., France, and Ireland all had a 35% tax rate. A U.S. company's Irish subsidiary sells to a customer in France. The U.S. charges 35% tax, Ireland charges 35% tax, and France charges 35% tax. The company ends up owing 105% of its profit as taxes. That's a pretty good indication that the rule is silly. It's the U.S.' definition of what is taxable which is faulty, not what these companies are doing.

Foreign countries may have a gripe with Apple shuttling revenue from their country through Ireland for accounting purposes, but the U.S. has no grounds for complaining. Apple paid its taxes to the U.S. for sales that were made in the U.S. U.S. revenue is not being shuttled through Ireland as you claim.


RE: The World's Tax Collector
By Reclaimer77 on 5/21/2013 6:16:45 PM , Rating: 2
Great post, exactly what I'm saying.

People know I'm no fan of taxes in general. But the IRS claiming rights to ALL profits from everywhere no matter what is just patently overboard.

As Jason pointed out, would we even be seeing this debate if the IRS wasn't taking a beating in the press for a solid week?


RE: The World's Tax Collector
By mcnabney on 5/21/13, Rating: -1
RE: The World's Tax Collector
By Solandri on 5/22/2013 5:17:49 AM , Rating: 5
Except Apple doesn't do that.

Apple had $157 billion in revenue and $41.7 billion in profit in FY2012.
http://www.pocketgamer.biz/r/PG.Biz/Apple+financia...

About 40% of Apple's revenue comes from the U.S.
http://techcrunch.com/2013/01/23/apple-internation...

40% of $41.7 billion profit is $16.7 billion profit attributable to the U.S. It's probably a little higher because the items sold here are probably skewed towards the higher profit items (e.g. high-end laptops, and phones/tablets with 64 GB of storage).

Apple paid nearly $6 billion in taxes to the U.S. in FY2012.
http://www.forbes.com/sites/connieguglielmo/2013/0...

$6 billion / $16.7 billion = 35.9%

The numbers support Apple's claim that it's not playing any accounting tricks when it comes to U.S. taxes.


RE: The World's Tax Collector
By Spacy on 5/22/2013 7:59:47 AM , Rating: 2
Slight problem. Your math suggests a simple solution to a complex tax problem. The report indirectly reported that the actual expenses/profit for apple might have been off as reported. Ie reported expenses to Ireland given a tax reduction that are not really expenses but tax sheltering of income. The money of 70Billion is stored in the country held by the American branch that is not being taxed on ( The rich and every one have to payee taxes on money that earns interest). There for the company uses American investment funds they should be using to payee American Government on investment income. Instead taking the money out of the country to avoid paying American tax system and holding the money were it well payee less taxes on investment income. This is a big tax problem that cannot be solved with a simple equation.


RE: The World's Tax Collector
By dsumanik on 5/28/2013 5:22:32 PM , Rating: 2
TO EVERY POSTER IN THIS THREAD ARGUING APPLE ISNT DOING ANYTHING WRONG:

IF APPLE, GOOGLE, MSFT ET AL ARE PAYING THEIR TAXES LEGALLY AND CONFORMING TO THE NECESSARY LAWS... WHY ON EARTH ARE THEY STORING MONEY AND PAYING TAXES IN BERMUDA AND IRELAND?

ILL TELL YA WHY:

ITS CHEAPER

YES IT IS LEGAL, YES I COULD DO IT AND SO COULD YOU....

BUT,

IS APPLE, AN AMERICAN OWNED AND OPERATED COMPANY PAYING AS MUCH TAX TO THE US GOVERNMENT AS THEY WOULD BE HAD THEY BEEN DOING EVERYTHING ON US SOIL?

NO.

ITS EVADING TAXES LEGALLY.

OR CHOOSING TO LEGALLY PAY LESS TAX.

TAKE YOUR PICK.

AS A BUSINESS OWNER MYSELF WHO WORKS ON BOTH SIDES OF THE BORDER I CAN TELL YOU THERE IS ONLY ONE REASON, AND ONE REASON ALONE I WOULD EVER PAY THE COSTS OF SETTING UP, COMPLYING, AND FILING TAXES IN A FORIEGN COUNTRY:

TO SAVE MONEY.


RE: The World's Tax Collector
By dsumanik on 5/28/2013 5:25:19 PM , Rating: 2
quote:
In the hearing Tim Cook -- accompanied by Apple's Head of Tax Operations Phillip A. Bullock -- admits, "I have no current plan to bring them back at the current tax rate."


THAT SAYS IT ALL.

WE DO IT TO AVOID THE US TAX RATE


RE: The World's Tax Collector
By Mint on 5/22/2013 12:20:03 PM , Rating: 2
You are assuming that corporate taxes should be payed in the jurisdiction where the product is sold, not where it is developed/produced.

Are most foreign companies that sell product in the US doing the same? Does the US get a cut of their profits? I highly doubt it. They simply export goods to the US and pay taxes in their own country. Most free trade advocates want to keep it this way.

While Apple's physical products are produced overseas, the secret sauce that makes them so profitable (design, software, ecosystem, image) is produced in the US.

There's no easy way to decide how globally produced products should have their associated profit taxed. If we take your methodology, US companies exporting to others can pay taxes to other gov'ts, but others providing imports don't have to pay taxes here (I know you didn't explicitly say that, but impossible to enforce anything else). That means the US gov't gets the short end of the stick.


RE: The World's Tax Collector
By Mint on 5/22/2013 12:54:57 PM , Rating: 2
This illustrates how important repatriation taxes are.

If they were set low or even zero as some are suggesting, then virtually every company in the US can set up a foreign subsidiary, go through the accounting procedure you outlined above, and pay low taxes on ALL their income without the drawback of keeping it stuck in a foreign account. The owners/shareholders would then own those profits without any pending taxation (except capital gains).

Foreign accounts are basically just reserves, and repatriation taxes do nothing to impede companies from reversing the flow if they want to do legit domestic reinvestment/hiring (which is tax deductible).

The wealthy, however, want to dupe people into thinking repatriation taxes hurts investment. The reality is that they just want to pocket profits without paying tax. Investment is unaffected and already has trillions of idle domestic dollars to fund it anyway.


RE: The World's Tax Collector
By BRB29 on 5/22/2013 11:03:44 AM , Rating: 2
i agree with you except the 105% thing. That is not how it is done. I am in accounting.

It is charged the tax % every time it is moved so it is 1 *.65 *.65*.65. = .274

So if it is tripled taxed. Then the company will only get 27.4% of its profits instead of 100%

If it is taxed once then the company receives 65%.

This is a simple analogy of how it works. It is much more complicated on the statements.

I think the point here is that Apple created AOI so it doesn't have to transfer money all over the place and get taxed. AOI is there to handle money like Tim Cook said. It is not to dodge taxes but a method for a business to stay alive in the global mess. If governments would actually talk to each other and compromise then our economy would be so much better. But it's ok because accountants like myself can demand high pay since most people don't understand this mess.


RE: The World's Tax Collector
By EricMartello on 5/25/2013 3:31:56 PM , Rating: 2
quote:
The problem isn't Apple or other "tax-dodging" companies. It's the U.S. tax code.


We've needed tax reform for corporations and individuals for decades. It hasn't happened yet because the tax code bloat was lobbied for by special interest groups that want to use tax as a shield for their industry, to keep competition low. These same lobbyists will try to prevent any changes from being made.

quote:
The problem isn't Apple or other "tax-dodging" companies.


This is correct. The notion that corporations and wealthy people are tax-dodging charlatans is was contrived by liberals and their "occupy" movement to create a divide between people who have achieved success and those who have not.

The best way to "fix" taxes is to stop going after income entirely and to tax spending.

A flat 20% sales tax on all goods purchased for use (not for resale) would ensure that the tax revenues match the economy.

This would streamline businesses and let them focus on operating rather than complying with tax regulations.

It would be great for people not to have to file annual tax returns and lose a chunk of their money.

It would give the government an incentive to maintain a vibrant economy, because the better the economy does the more people spend and the more tax revenue they generate.

If the economy stalls or flatlines like it has with Obama, the government will feel the burn just as much as citizens do. It will not be like it is now, where DC has been thriving despite the rest of the country struggling.


RE: The World's Tax Collector
By JasonMick (blog) on 5/21/2013 5:36:30 PM , Rating: 1
quote:
Apparently the United States is the tax collector for the entire world.

By what rights is tax revenue owed to the US Government for profits an American company generated oversees?

Apple is just making the most of this mess that it can, as anyone with half a brain would.
But Reclaimer, we must divert attention away from the IRS crackdown on political dissidents, AP phone record seizures, harassment of FOX News reporters, warrantless drone killings of U.S. citizens, abusive executive orders, and special interest handouts like the NDAA/ACTA.

More hearings! More hearings! I hear Google might be evading some taxes!

( Side note:
Notice how McCain goes along with the Democrats in Congress all too often ... kind of like Romney in Mass. Gee, Republicans have nominated quasi-Democrats both of the last two elections and lost both of the last two elections... I wonder if they will look to run that streak to three?)


RE: The World's Tax Collector
By Reclaimer77 on 5/21/13, Rating: -1
RE: The World's Tax Collector
By bodar on 5/21/2013 7:28:09 PM , Rating: 2
Yep, it's pretty much been the White House's "Plan A" for the last 30+ years, and Obama is no different. "Plan B" is to sabre-rattle against an unpopular foreign nation.


RE: The World's Tax Collector
By Lord 666 on 5/22/2013 2:34:28 AM , Rating: 2
"You never want a serious crisis to go to waste."

Diversion tactics with the media is nothing new, but in the past 10 years it has become absurdly obvious.


RE: The World's Tax Collector
By Reclaimer77 on 5/22/13, Rating: 0
RE: The World's Tax Collector
By half_duplex on 5/23/2013 10:19:31 AM , Rating: 1
What was it we were talking about before "SUPER STORM SANDY"?

And how many "FISCAL CLIFFFFFFFFfffffsss" can we possibly go over?

And don't forget poor Hilary, she bumped her head.


RE: The World's Tax Collector
By superflex on 5/22/2013 8:08:44 AM , Rating: 1
I wouldn't be surprised if Google pressured the Senate on act on Apple.


RE: The World's Tax Collector
By Reclaimer77 on 5/22/2013 8:48:02 AM , Rating: 2
quote:
I wouldn't be surprised if Google pressured the Senate on act on Apple.


I would be. Why would Google, who also does everything they can to reduce their tax burden, want to bring this issue to the forefront? Any policy change directed at Apple, would also effect Google.

Google doesn't strike me as the kind of company who would cut off their own nose to spite their face.


RE: The World's Tax Collector
By half_duplex on 5/23/2013 10:15:00 AM , Rating: 2
Seems like the last handful of times the nation has turned it's focus to the criminal actions of the federal government, the federal government responds with a one of these such spectacles. Benghazi and Clintons concussion.

We need to keep the focus where it should be, on the IRS.

100 years ago, people would be ready to fight and die against this tyranny.

If I were Tim Cook, I'd have brought up the IRS situation, don't let pull another slick one.


RE: The World's Tax Collector
By MozeeToby on 5/21/2013 5:47:21 PM , Rating: 5
This isn't precisely how it works, but gives a good idea of how the basic system functions.

US Company A spends $100,000,000 developing cool new software. Company A sells or transfers the rights to the resulting software to company B for $110,000,000. Company B sells 100,000,000 individual copies of the software to distributors C, D, and E (again owned and operated by company A) for $100 a pop. Distributors C, D, and E sell the copies to consumers or retailers for $110 a pop.

Company A reports $10,000,000 in profits. Companies C, D, and E collectively report $1,000,000,000 in profits. Company B reports $9,890,000,000 in profits. Companies A, C, D, and E are based in the US, company B is in Ireland.

Company B is in a tax friendly jurisdiction, often employing just a few dozen people and with zero autonomy to make decisions without the OK from the home office. Despite the fact that the software was manufactured and sold in the US, less than 10% of the profits are taxed.

But, you say, you can't bring the profits back without being taxed, the money is useless to Company A! Well no, what company A can do is report that money as cash on hand, and then borrow against it at ridiculously low interest rates (because your collateral is perfectly liquid). Loans aren't income, so that isn't taxed. You can then use that money to do whatever you want, including paying your CEO millions of dollars or paying a dividend to the stockholders.


RE: The World's Tax Collector
By ptmmac on 5/21/2013 6:17:04 PM , Rating: 2
Tim Cook explicitly said that Apple does not do what you are describing. What they are doing is spreading the costs of the research and development across the whole world so that money from outside of the United States can be brought back to fund the development. What Apple can't do is use the money from over seas to buy assets such as Cap Expenses. Apple has one of the most conservative bookkeeping systems on this planet. Do you really believe if Apple was doing anything remotely shady that the CEO would agree to testify before Congress? Lying to Congress can get you sent to the poky. Tim Cook may not be prefect, but he is a straight arrow if ever there was one.


RE: The World's Tax Collector
By Mint on 5/22/2013 1:38:20 PM , Rating: 2
quote:
What Apple can't do is use the money from over seas to buy assets such as Cap Expenses.
Of course they can. All they have to do is shift profits back to the US, and then use them to cover the financing of the cap expense (which is tax deductible).

That's not an issue, though. The gov't wants companies to use profits to buy new equipment/buildings/etc, and it lets them deduct those expenses even when they keep all profits in the US.

What they don't want is for the company to put earning into a pile of cash without paying taxes.


RE: The World's Tax Collector
By Skywalker123 on 5/23/2013 4:20:31 PM , Rating: 2
Companies don't pay taxes, people do


RE: The World's Tax Collector
By Mint on 5/24/2013 7:41:56 AM , Rating: 2
That's like saying sales tax doesn't exist, only income tax does.

Would you like to make corporate tax zero and increase income tax to compensate? Let's assume companies give raises to their employees so that their net income is the same. Overall, the total tax burden is the same.

Individually, however, companies will feel different effects. Companies with a high payroll-to-profit ratio get punished, and companies with a low payroll-to-profit get rewarded. Great plan.

How you tax affects behavior.


RE: The World's Tax Collector
By StanO360 on 5/21/2013 6:32:12 PM , Rating: 1
Even if they did do what you're saying, Cook would and should be fired if he did not do it.

The problem is not Apple's, it's the government. Corporations are not the Devil incarnate as Obama would have us believe. A 35% tax (plus state, property, sales, and NOW hordes of onerous regulations) is crippling to many companies.


RE: The World's Tax Collector
By Fleeb on 5/21/2013 7:51:23 PM , Rating: 2
Only if we could bring those Foxconn jobs back to the USA. That is one indication companies like Apple invest back and bring jobs.


RE: The World's Tax Collector
By superflex on 5/22/2013 8:13:43 AM , Rating: 1
The EU has an effective flat corporate tax rate of 14% while the average American company pays 18% and up to 35%.
Senator Paul is 100% right. Goons like Charlie Wrangell and the other tax cheats on the Ways and Means Committee are to blame.


RE: The World's Tax Collector
By lewisc on 5/22/2013 3:53:12 PM , Rating: 2
Not quite sure what you mean with reference to the EU flat rate - within the EU, corporation tax rates are set at a national rather than supranational level.


RE: The World's Tax Collector
By dxf2891 on 5/22/2013 10:42:09 AM , Rating: 2
Well, Apple could always move their operations to China or even Ireland and pay tarriffs for their products to be sold in the US. Hmmmm, I wonder how their profits would be affected then? Of course this would increase their overall price and would also decrease their overall profits. Apple has to pay it's fair share just like everyone should. This is way the US should institute a flat tax. It should be 20% for individuals and 30% for corporations. No loop holes and no tax tricks. Flat means flat.


RE: The World's Tax Collector
By Mint on 5/22/2013 2:08:38 PM , Rating: 2
You think the US gov't gets tax revenue for profits that Chinese or European companies generated by selling products here?


"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki