BBC News - Apple paid only 2% corporation tax outside US
And in reality it is even worse since in Ireland the actual % was something like 0.06%
How an Apple affiliate made $30 billion and paid no taxes - The Week
All of Apple's global sales go through AOI, which was set up in 1980 in Ireland, a low-tax country that gives Apple special treatment in the form of a negotiated 2 percent tax rate. AOI accounted for 30 percent of Apple's profits from 2009 to 2011. Another Irish subsidiary, Apple Sales International, earned $38 billion and paid $21 million in taxes in the same period, giving it an effective tax rate of 0.06 percent. When the income of all of Apple's affiliates in Ireland is tallied up, the company managed to shield $74 billion in profits from taxation from 2009 through 2012.
Have you even been following the debate? Apple does not need to take the money back to the US, not even to pay its freaking dividend.. They issued the biggest bond sale ever for a company not long ago, to pay their dividend because the stock holders complained that they had too much money on the books. They still have that money but also a butt load of debt now and now they can actually in the US (where the bonds were issued) write off the freaking debt so next year they will maybe get money back from the US tax payer.And yes, maybe. An 8% reduction in taxes certainly doesn't have the same appeal as a 15% reduction. Maybe it isn't worth sheltering that extra $44B overseas if they could keep $35.2B of it instead of $28.6B. Maybe Apple decides that they can make up the difference by investing it in capital. Or maybe 20% is still too much, and 15% would be better. The point is, reducing the corporate tax is necessary if we want companies like Apple to keep their money in the US instead of sending it overseas.
And on the subject of profits in the US and what they pay.. sure they pay the most in taxes but they also have the highest profits.. but it is no where near the 32% they SHOULD be paying... and that is a fact! Mom and pop corner store pays far more than Apple in % of their profits than Apple... and that is just wrong.
Also, the mom and pop corner store pay their taxes on a 1099 form. They actually do not pay anything on the store if I'm not mistaken, but rather any profit they take is treated as their income.
Apple pays a corporate tax, AND then its senior managers have to pay a rate on their own person income tax.
That said, why can't we lower taxes for both of them?
Companies like Apple, Google, Microsoft and others who use these methods should be PUNISHED not rewarded for their actions. You and I cant avoid paying taxes but they can and they should be rewarded for that? Hell no.
Not the point. Point is, a company that is not a multinational or as big as Apple, pays what it is suppose to, but Apple because it has the accountants and lawyers can avoid paying most taxes. Fact is that you need to be a certain size to be able to use these cheats and everyone else who aint that size and dont have the ability to use the cheats are paying their fair share and burden.Also, the mom and pop corner store pay their taxes on a 1099 form. They actually do not pay anything on the store if I'm not mistaken, but rather any profit they take is treated as their income.
This is massive corporate welfare .. pure and simple.
It does not pay 32% or whatever the tax rate is.. far far far form it.Apple pays a corporate tax,
Totally irrelevant. They are employees and pay taxes on their income as they should. It is still in % 10 times more than what Apple pays.AND then its senior managers have to pay a rate on their own person income tax.
Because stuff needs to be paid for. And since Apple does not pay the taxes that they should, then for **** sake fix that part and then see how much the over all tax burden can be lowered.That said, why can't we lower taxes for both of them?
Point is, if the big corporations all paid what they should be paying instead of playing hide the profits world wide, then all our tax rates would be lower.
Your not seeing the forest for the trees. Apple can't use money that it sends overseas for capital investment or to pay out as dividends. If our corporate tax was only 15%, they would have less incentive for putting money overseas that could otherwise be used to benefit the company. There are other ways to collect the same taxes from Apple without slapping a 35% corporate tax on them.
Besides, what is a company like Apple "supposed" to pay? Its completely arbitrary. I think Apple is "supposed" to pay whatever rate keeps their money invested in our country. Unlike you, who thinks that a company like Apple should be writing tens of billions of dollars in checks every year for our government's reckless spending habits.
Yes it can... just not in the US and since 90+% of all Apple activity (making stuff) is overseas then well..Your not seeing the forest for the trees. Apple can't use money that it sends overseas for capital investment
Nope but as we have seen, the cash is not needed as it just takes out a massive amount of debt to pay the dividend.or to pay out as dividends.
Not the freaking point and you know it. YOU pay a certain amount of taxes that you can not avoid.. if you try, you go to jail. Apple (and the like) should pay a certain amount in % in taxes, but thanks to loopholes, that are not available to you or most other companies, then they can move their profits out of a country of sale and to a less tax country and pay nothing in taxes. It is immoral and wrong.If our corporate tax was only 15%, they would have less incentive for putting money overseas that could otherwise be used to benefit the company. There are other ways to collect the same taxes from Apple without slapping a 35% corporate tax on them.
Hell no, Apple is suppose to pay a certain % in corporate tax ...and it does not ... not even close.Besides, what is a company like Apple "supposed" to pay? Its completely arbitrary. I think Apple is "supposed" to pay whatever rate keeps their money invested in our country. Unlike you, who thinks that a company like Apple should be writing tens of billions of dollars in checks every year for our government's reckless spending habits.
Last edited by PeteEU; 05-23-13 at 07:13 AM.
Maybe 90% of it is overseas because of the tax code. If lowering the corporate tax rate reduces this number to 80% overseas, I consider that a victory.
It is the fricking point. And there is nothing here that Apple is doing illegally. If I do everything I can to reduce my taxes without breaking the law, I'm not breaking the law. Don't blame me for maximizing my own rational self benefit, blame the system. You cannot rationally expect Apple to send 35% of its profits over to the Federal Government, and still expect it to invest in the US. Those two things are contradictory.
Morality is not applicable to a tax code. Efficiency and incentives are. In my opinion, the most efficient tax code is also the most moral because destroying wealth is immoral. Just my
But lets play this game... how about we tax all companies 100% on profits, and everyone else pays not taxes? How does that sound?
You know that is not true... it is because of wages and expertise.. no one in the US is willing to live in a 200 man/women dormitory for most of the year and earn a few dollars a day.... they are in China and Apple has to maintain its insane profit margin of 40% so they moved their production to China and elsewhere. But even that is changing and Apples profit margin is falling because the Chinese want more money in wages.. and that hurts. Eventually there will be no difference between Chinese and American workers..other than expertise and education of course.Maybe 90% of it is overseas because of the tax code. If lowering the corporate tax rate reduces this number to 80% overseas, I consider that a victory.
Never said it was.. but it should be and that is the point.It is the fricking point. And there is nothing here that Apple is doing illegally.
I am blaming the system, a system that companies like Apple have written for themselves. THAT is the point. You do realize that only Apple has a 2% tax burden in Ireland right? It is specially negotiated.., something that you or I cant get.. And that there are next to no employees in Ireland... great deal, being registered in one country and living 100% in another with the sun and babes... where can I get that deal? Oh I cant... unless I am extremely wealthy and base myself in a tax haven.If I do everything I can to reduce my taxes without breaking the law, I'm not breaking the law. Don't blame me for maximizing my own rational self benefit, blame the system.
No they are not. You pay your taxes and invest your money in goods and services in the US.. why should Apple not do the same thing? Or GE, or Google? If you really think that the 35% tax rate prevents any companies or people in investing in the US.. then you sir are deluded. Taxes have never been lower in the US, and investment has tanked... it was much higher during the high tax years gone by. Not to mention very few corporations pay anywhere near the 35% corporate tax.You cannot rationally expect Apple to send 35% of its profits over to the Federal Government, and still expect it to invest in the US. Those two things are contradictory.
Efficiency and incentives are must, but when the tax code is so lopsided and creates moral issues like this.. then you have a problem.Morality is not applicable to a tax code. Efficiency and incentives are. In my opinion, the most efficient tax code is also the most moral because destroying wealth is immoral. Just my
Listen no one likes paying taxes, but the rational people in the world know that taxes are a burden that we all have to deal with so that we can have roads, military, schools, healthcare and so on. That is part of life. And when someone or some company tries to fix the system so that they and only they can avoid paying their share of taxes, then you have a serious problem. What happens to Apple and other big multinationals is corporate wealth fare .. on top of the other handouts we the people / government gives them. It shifts the burden on to you and me so we have to pay extra in taxes to make up for the lost income from these very profitable rich companies. You are paying for their profits both by buying their crappy products but also via the tax burden you get extra on you because Apple is avoiding paying what it morally should be paying.
We have seen through out history, that when the few abuse the many that revolutions are started and the few are more than often killed off. The American revolution, French revolution and the Russian revolutions were basically a mass uproar against the few wealthy and the abuses of power by these. It can happen again, but this time around it is not only the politicians that are at risk but the CEOs of big corporations and banks that are sucking the life out of the masses for their own greedy purposes.
Let me ask you this.... lets say a fictive neighbor. He is say a certain religion and skin colour, and because of that he only pays 10% on his million dollar income, where as you as another religion and skin colour have to pay 40% on your 50k a year income. Note that nothing is illegal, since the tax law states that if you are a certain religion and skin colour then your tax rate is only 10% ... so let me ask you this... it is not illegal but is it fair and morally fair?
2. 100% tax on profits? Good luck with unemployment.
3. Productivity growth is slow in China, and wages have been rising pretty quickly. We are already starting to see the trend that it is no longer more profitable for everyone to make products in China compared to the US. Things are not black and white. Its a cost benefit curve. The more things we can do to increase the benefits of investing the US and lowering the costs, the more attractive we will be to companies.
4. What does Apple's tax code in Ireland have to do with the U.S.'s tax code? We didn't write Ireland's tax code. But I am more then willing to bet, if our corporate tax rate was lower, we would see less aggregate outflow of capital to other countries.
5. Who is paying the most taxes in this country?
6. You're right, it is unfair that people are paying different rates in taxes based on incomes and available deductions. Which is why we should have a flat tax. Problem solved.