Apple is one of the most innovative companies America has ever seen – a provider of quality products that enrich people’s lives. It also creates jobs and investment, and tax revenue – which in a well-managed country would be devoted exclusively to core functions by a limited, unobtrusive government that respected individual freedom and free markets.
We don’t live in a well-managed country, though. We live in the United States of America – which in addition to being $16.7 trillion in debt has become a place where politicians target companies for being profitable and bureaucrats target citizens for being fiscally conservative.
Case in point? U.S. Senate hearings into Apple’s alleged “tax evasion.” Specifically, some lawmakers are claiming that Apple has avoided as much as $74 billion in tax payments over the past four years by setting up subsidiaries in lower-tax countries.
“Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven,” U.S. Sen. Carl Levin (D-Michigan) said. “Apple successfully sought the holy grail of tax avoidance. It has created offshore entities holding tens of billions of dollars.”
The horror, right?
“Amusing to watch Democratic U.S. Senators excoriate Apple for following tax laws passed by Congress,” S.C. Senator Tom Davis wrote on his Facebook page.
Look … the real scandal here isn’t that Apple is doing everything within its power to minimize its tax burden. Every American company does that. Hell, every American does that.
The real scandal here is that our government – the vast majority of which is every bit as unnecessary as it is incompetent – simply cannot live within its means and is therefore compelled to embarrass, harass and shake down companies like Apple.
That’s the problem. Our government is too big, spends too much and our taxes are too high. None of that is Apple’s fault – or the fault of any American business. But until that problem gets fixed, every American business is going to be punished for it.
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47 comments
Apple should have more “personal responsibility” and be more “patriotic” and “support the troops” that “protect their freedom” by “bringing jobs to America” and keeping their profits here and “paying their share of the cost of their freedoms”.
I sure hope that’s sarcasm.
Apple should have more “personal responsibility” and be more “patriotic” and “support the troops” that “protect their freedom” by “bringing jobs to America” and keeping their profits here and “paying their share of the cost of their freedoms”.
I sure hope that’s sarcasm.
Apple, innovative? Really dude? What they’re good at is marketing. Their computers are honestly not all that special, at all. Neither is their phone. They’re overrated, if not outright pieces of garbage in most instances.
Only an Apple slave would spend $2,000 on a computer comparable to a $1,000 PC minus the ability to feasibly upgrade it.
And yes, corporations using tax shelters is a problem when we’re running huge deficits, and even if we weren’t, it would still be a problem because that’s just a bigger share the rest of us have to pay, both individuals and small businesses.
Preach on Brother Smirks, preach on.
I have tried plenty of times to show Applelites the Truth but Apple’s marketing has them thoroughly brainwashed.
Apple is NOT innovative. Their products are sub-par and overpriced and no free choices as to personalizing and utilizing. Not to mention you have no real choices from whom to do business with your Apple product.
And yes, Apple products are susceptible to virus’. The real reason they are troubled by few virus’ is that there are only a small number of people that actually use Apple computers as compared to the vast number of people that own and use True Personal Computers. Look at it this way, if you were going to write a virus would you want it to infect 10 computers or 10,000,000?
Fuck Apple.
Apple, innovative? Really dude? What they’re good at is marketing. Their computers are honestly not all that special, at all. Neither is their phone. They’re overrated, if not outright pieces of garbage in most instances.
Only an Apple slave would spend $2,000 on a computer comparable to a $1,000 PC minus the ability to feasibly upgrade it.
And yes, corporations using tax shelters is a problem when we’re running huge deficits, and even if we weren’t, it would still be a problem because that’s just a bigger share the rest of us have to pay, both individuals and small businesses.
Preach on Brother Smirks, preach on.
I have tried plenty of times to show Applelites the Truth but Apple’s marketing has them thoroughly brainwashed.
Apple is NOT innovative. Their products are sub-par and overpriced and no free choices as to personalizing and utilizing. Not to mention you have no real choices from whom to do business with your Apple product.
And yes, Apple products are susceptible to virus’. The real reason they are troubled by few virus’ is that there are only a small number of people that actually use Apple computers as compared to the vast number of people that own and use True Personal Computers. Look at it this way, if you were going to write a virus would you want it to infect 10 computers or 10,000,000?
Fuck Apple.
The government report that highlights all this for the Senators repeatedly says ALL of Apple’s actions in this regard are LEGAL. The good Senators just want to shake them down for more money and that is what this dog and pony show is, a shake down.
Here is a link to a good explanation of what Apple did, LEGALLY.
http://www.foxbusiness.com/government/2013/05/21/apples-irish-tax-strategy-explained/
and again, businesses make business decisions and strategies based, at least in part, on taxes.
Just because something is legal, doesn’t make it ethical. Why is it ok for Apple to pay very little in taxes but someone paying no taxes on their minimum wages is a bum?
If the sale/profit was made in the US, the taxes should be paid in the US. Period.
Vic,
I’m assuming you didn’t read the article that I linked to, they did pay taxes on US sales.
Vic doesn’t realize that he is upset that gov’t has an unfair tax code, unfortunately he is blaming Apple for that, when it’s once again the govt’s fault.
The pols are succeeding in shifting the blame unfortunately. They are vilifying using their own incompetent confiscation system against them, lawfully. They are bitching that an organization has the temerity to take advantage of gov’t incompetence to keep that very gov’t from stealing more of their money. It’s pretty funny actually.
Of course, no one is going to question why the same bitching, hearings, etc. aren’t happening to The Black Jesus’s bud over at GE…or Soros/Buffet/Gates….or Google…who all kiss gov’t ass and spread lots of lobbying money around DC.
Kind of reminds me of the IRS hassling all the tea party groups, just in a different way.
I did not read it. Being it was from Fox, I didn’t deem it as credible. Having now read it, it clearly shows Apple avoiding European taxes, as well as US.
What Apple is doing is legal, but it should’t be. Taxes should be paid where Earned.PROFIT WAS EARNED IN IRELAND
The government report that highlights all this for the Senators repeatedly says ALL of Apple’s actions in this regard are LEGAL. The good Senators just want to shake them down for more money and that is what this dog and pony show is, a shake down.
Here is a link to a good explanation of what Apple did, LEGALLY.
http://www.foxbusiness.com/government/2013/05/21/apples-irish-tax-strategy-explained/
and again, businesses make business decisions and strategies based, at least in part, on taxes.
Just because something is legal, doesn’t make it ethical. Why is it ok for Apple to pay very little in taxes but someone paying no taxes on their minimum wages is a bum?
If the sale/profit was made in the US, the taxes should be paid in the US. Period.
Vic,
I’m assuming you didn’t read the article that I linked to, they did pay taxes on US sales.
Vic doesn’t realize that he is upset that gov’t has an unfair tax code, unfortunately he is blaming Apple for that, when it’s once again the govt’s fault.
The pols are succeeding in shifting the blame unfortunately. They are vilifying using their own incompetent confiscation system against them, lawfully. They are bitching that an organization has the temerity to take advantage of gov’t incompetence to keep that very gov’t from stealing more of their money. It’s pretty funny actually.
Of course, no one is going to question why the same bitching, hearings, etc. aren’t happening to The Black Jesus’s bud over at GE…or Soros/Buffet/Gates….or Google…who all kiss gov’t ass and spread lots of lobbying money around DC.
Kind of reminds me of the IRS hassling all the tea party groups, just in a different way.
I did not read it. Being it was from Fox, I didn’t deem it as credible. Having now read it, it clearly shows Apple avoiding European taxes, as well as US.
What Apple is doing is legal, but it should’t be. Taxes should be paid where Earned.PROFIT WAS EARNED IN IRELAND
Poor old Apple.This is how the Republicans are going to expand their “base!” Some poor schnook working his ass off tomake a few bucks for his family and what are Republicans like Fits worried about?Howmuch taxes poor old Apple is paying.Yes we know all you Republicans are “concerned” about “fairness.”
Apple has been propping up Nancy Pelosi’ s campaign coffers for decades….I am sure she just wants more dough…I am sure she and the DNC will get even more cash from Apple…Notice the Administration isn’ t crucifying GOOGLE for similar practices…I guess Schmidt must have oiled the right palms at 1600 Penn Ave…
Poor old Apple.This is how the Republicans are going to expand their “base!” Some poor schnook working his ass off tomake a few bucks for his family and what are Republicans like Fits worried about?Howmuch taxes poor old Apple is paying.Yes we know all you Republicans are “concerned” about “fairness.”
Apple has been propping up Nancy Pelosi’ s campaign coffers for decades….I am sure she just wants more dough…I am sure she and the DNC will get even more cash from Apple…Notice the Administration isn’ t crucifying GOOGLE for similar practices…I guess Schmidt must have oiled the right palms at 1600 Penn Ave…
Congrats, you just repeated what Rand Paul already said at that same hearing.
Congrats, you just repeated what Rand Paul already said at that same hearing.
Is this a set up for another tax repatriation holiday? I.e., create a false problem then let Apple transfer the money back to the US at 5.25% versus 35%.
Wouldn’t 5.25% of $100 billion be better than nothing?
The US government spends 5 billions dollars every hour and ten minutes.
Exactly!
Congress is going to grandstand over Apple finding a LEGAL way to keep more of its own money, instead of actually trying to fix the problem of spending more than they take in.
Even if they managed to change the laws to make Apple pay more tax, they’d burn through the extra tax money stolen from Apple in far less than 1 day.
The geniuses holding office have chosen to hassle one of American’s more successful companies, over its very success. Nice.
Last time I checked, even the leftist heroes Gates, Buffet, & Soros are doing to the same EXACT thing…in fact 99.9% of us here are as well.
I have yet to run into someone that’s said, “Yea, I believe in our gov’t so much I’m actually giving more than I’m required by law.”
What a bunch of hypocrites.
The only reason they are pissed is because they know deep down Jobs hated their asses and didn’t even buy DC lobbyists until shortly before his death to pay their asses off.
He leased a new BMW every 6 months just to avoid the new car/registration taxes via local loophole. He didn’t widely advertise it out of fear for retribution against his company, but he was anti-statist in many ways.
I’m not an Apple fan boy either, but I find the irony of people bitching about them not being “cutting edge” or “unique” interesting in that many of them are gov’t cheerleaders…and gov’t has adopted Apple for decades in different applications & technology.
All Jobs was guilty of is providing a product that people want…and Apple’s balance sheet reflects that. Will it continue? IDK, Jobs was a one man creation engine…I’m not seeing anyone emerge from Apple that can do the same.
Ha, there it goes. No, it’s not better if a mere 1/6 of the money gets moved back to the US anyway (using the 5.25 and 35% rates), and Apple does want to move it back or they wouldn’t be lobbying so hard. And no it’s not better if you don’t want the tax system to continue to break down due to real and perceived inequities. Call their bluff.
Is this a set up for another tax repatriation holiday? I.e., create a false problem then let Apple transfer the money back to the US at 5.25% versus 35%.
Wouldn’t 5.25% of $100 billion be better than nothing?
The US government spends 5 billions dollars every hour and ten minutes.
Exactly!
Congress is going to grandstand over Apple finding a LEGAL way to keep more of its own money, instead of actually trying to fix the problem of spending more than they take in.
Even if they managed to change the laws to make Apple pay more tax, they’d burn through the extra tax money stolen from Apple in far less than 1 day.
The geniuses holding office have chosen to hassle one of American’s more successful companies, over its very success. Nice.
Last time I checked, even the leftist heroes Gates, Buffet, & Soros are doing to the same EXACT thing…in fact 99.9% of us here are as well.
I have yet to run into someone that’s said, “Yea, I believe in our gov’t so much I’m actually giving more than I’m required by law.”
What a bunch of hypocrites.
The only reason they are pissed is because they know deep down Jobs hated their asses and didn’t even buy DC lobbyists until shortly before his death to pay their asses off.
He leased a new BMW every 6 months just to avoid the new car/registration taxes via local loophole. He didn’t widely advertise it out of fear for retribution against his company, but he was anti-statist in many ways.
I’m not an Apple fan boy either, but I find the irony of people bitching about them not being “cutting edge” or “unique” interesting in that many of them are gov’t cheerleaders…and gov’t has adopted Apple for decades in different applications & technology.
All Jobs was guilty of is providing a product that people want…and Apple’s balance sheet reflects that. Will it continue? IDK, Jobs was a one man creation engine…I’m not seeing anyone emerge from Apple that can do the same.
Ha, there it goes. No, it’s not better if a mere 1/6 of the money gets moved back to the US anyway (using the 5.25 and 35% rates), and Apple does want to move it back or they wouldn’t be lobbying so hard. And no it’s not better if you don’t want the tax system to continue to break down due to real and perceived inequities. Call their bluff.
Man, if the US government could get there hands on that $74 Billion, it would be spent so much more wisely than Apple’s Finance Department schmucks…..oh wait.
Man, if the US government could get their hands on that $74 Billion, it would be spent so much more wisely than Apple’s Finance Department schmucks…..oh wait.
Good for ya’..Apple. A Leftwing, elitist corp. that walks in lockstep w/ Obama gets its @$$ kicked by the same @$$-holes it worships…
Maybe the IRS can hate on Apple, take its money and give it to another Dumb@$$ Obama idea like Solyndra…and Apple will end up on the unemployment line, like Obama has the rest of America….
Liberalism will collapse on itself..ObamaCare, Green Energy, Sequester gas prices and the deficit…Obama just gets closer to Crashing everyday that idiot is in charge.
Detroit, Atlanta, California and New York…let liberals go wild..and watch it disintegrate…
Nice job, Obama…
Yeah, there should be no taxes at all, those folks in Oklahoma should have to figure it out themselves. What’s wrong with anarchy, who has the most guns, money, and influence rules. Yeah, that’s what this country is all about and don’t forget that Jesus picked it out! What a bunch of crap!
Yeah, there should be no taxes at all, those folks in Oklahoma should have to figure it out themselves. What’s wrong with anarchy, who has the most guns, money, and influence rules. Yeah, that’s what this country is all about and don’t forget that Jesus picked it out! What a bunch of crap!
Didn’t GE post a $12 Billion Dollah profit in 2012 and pay Zilch in taxes?…( sure helps out when the CEO is personal friendz with the prez)
Didn’t GE post a $12 Billion Dollah profit in 2012 and pay Zilch in taxes?…( sure helps out when the CEO is personal friendz with the prez)
First sentence should be changed to: Apple is one of the most innovative companies CHINA has ever seen
First sentence should be changed to: Apple is one of the most innovative companies CHINA has ever seen
How I would have loved to hear Apple’s Tim Cook tell the Committee, “Gentleman, we’re just following the idiotic tax code that you morons wrote. If you want to know what’s wrong here, instead of picking on me why don’t you go look in the mirror”
Exactly again! You’re on fire today!
Even better, I’d love to hear Cook say: “You know gentlemen, you’ve just convinced us that Apple is no longer wanted in the US, so as of today we are closing our offices in Cupertino and moving them to Singapore. While we continue to sell products in the US obviously, we will move our operations to a more business friendly environment where we are appreciated instead of demonized.”
How I would have loved to hear Apple’s Tim Cook tell the Committee, “Gentleman, we’re just following the idiotic tax code that you morons wrote. If you want to know what’s wrong here, instead of picking on me why don’t you go look in the mirror”
Exactly again! You’re on fire today!
Even better, I’d love to hear Cook say: “You know gentlemen, you’ve just convinced us that Apple is no longer wanted in the US, so as of today we are closing our offices in Cupertino and moving them to Singapore. While we continue to sell products in the US obviously, we will move our operations to a more business friendly environment where we are appreciated instead of demonized.”