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Apple, Taxes, And Why Tim Cook Is Wrong
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TerryB
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TerryB,
User Rank: Ninja
1/6/2016 | 1:17:09 PM
Re: US entitlement?
@stevew928, I guess I don't get why you would pay taxes twice? Are you being compensated more to make up for this? Or do the Canadian taxes just replace what you would pay to your state? Well, assuming you live in state that has income taxes.

I've seen stories talking about professional athletes getting more money when playing for Canadian team because their taxes higher in Canada. But never saw they were being taxed twice? You are living it though so I'm sure you know what you are talking about. But I just don't know why you would personally do that unless your employer boosts your pay to make up for this?
RogerF568
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RogerF568,
User Rank: Apprentice
1/6/2016 | 1:06:46 PM
Apple, Taxes & Why Tim Cook is Wrong
Here is Judge Learned Hand (1872-1961), US Court of Appeals in the case of Gregory v. Helvering 69 F.2d 809, 810 (2d Cir. 1934), aff'd, 293 U.S. 465, 55 S.Ct. 266, 79 L.Ed. 596 (1935)...

"...Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes.  Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands."

If you have a different understanding of the law than this, Charles Babcock, I hope that you'll share it with us.
vnewman2
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vnewman2,
User Rank: Ninja
1/6/2016 | 12:56:02 PM
Re: Apple apologists say it pays 'more than the average'
Especially when people feel they are being treated unfairly, if any type of loophole exists, they will exploit that loophole. If they play by the rules, the corporation takes a huge hit, so they make their own rules that are in the best interest of their company. I'm not saying it's right, but it's simple (arithmetic), really.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
1/6/2016 | 12:34:01 PM
Apple apologists say it pays 'more than the average'
I run into Apple admirers all the time who say things like "Apple pays more than the average corporation in this country in tax percentage. They are also the largest corporate taxpayer." These are generalities that don't address the specifics of the case. Apple is the richest corporation in the world. I'd like to see the basis for the claim it pays more than average; it's a thin line of defense anyhow. Many companies have holdings offshore but no company has been as clever at finding the ill-defined space in the tax laws of both the U.S. and Ireland. No company has gone to the lengths that Apple has to protect overseas cash. And I'd like to see a strict accounting on the claim it's derived all $181 billion from overseas sales. Given the cleverness of moving IP to Ireland, I'm not going to bet on that side of the ledger.
rradina
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rradina,
User Rank: Ninja
1/6/2016 | 11:47:39 AM
Re: Don't be fooled by bluster
Charles, I recommend that you stay away from politics that aren't specific to the tech industry.  This particular issue applies to any US corporation that has international revenue.  This article is a biased rant about holding Apple to a higher ethical standard because of its success.  Success which was not and is not based in any way on the amount of taxes it pays or avoids -- to the US or any other country.

Encryption politics -- fair game.  DRM politics -- fair game.  Net neutrality politics -- fair game.  Tax politics -- find another venue.

 
mcp007
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mcp007,
User Rank: Apprentice
1/6/2016 | 10:19:39 AM
Re: US entitlement?
stevew928,

Becuase Apple headquarters is in the U.S. and is an American company so by that fact it should be obligated to pay the 40% taxes overseas back to the U.S. Government to give to schools, startups, research grants and local communities. By making an incentive to keep its operations in the U.S. by lowering the U.S. corporate tax the U.S. can bring more jobs and keep investment in the U.S.
stevew928
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stevew928,
User Rank: Ninja
1/6/2016 | 10:14:25 AM
Re: Don't be fooled by bluster
"In addition the USA is the only major developed country that requires taxes to be paid on income where taxes has already been paid, when made out of the country."

This ^^^
stevew928
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stevew928,
User Rank: Ninja
1/6/2016 | 10:11:22 AM
US entitlement?
I guess my question is why the USA feels so entitled to tax money made elsewhere?

While Apple is headquartered in the USA, as Cook said, they make a LOT of their money with sales in non-US markets. It doesn't really make sense, either that in this time of large multi-national companies, that they should pay taxes 100% in their home country, or to each country where they do business (for the whole amount), etc.

For example, I'm a US citizen living and working in Canada. Yet, I have to file and pay taxes to the US just because I'm still a citizen..... and to Canada because I'm living and working here. It makes sense that I pay Canada, but makes little sense to still be paying the US.

It seems more like the US's argument is.... we waste one heck of a lot of money, so we're really, really in debt... and we'd really, really like to keep up our spending... so you owe us more money.... just because.
mcp007
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mcp007,
User Rank: Apprentice
1/6/2016 | 9:58:41 AM
Tim Cook attacks critics without merit
Tim Cook is attacking his critics without any merit to justify his arguments such as the notion that the criticism on the issue of not paying taxes overseas is "Political crap." It's not IMHO political at all that the critics are just stating the fact that Apple pays no taxes overseas for its operations but its headquarters is located in the U.S. which is simply called corporate inversion. He simply justifies that the company can't pay 40% taxes overseas in international profits just because it costs too much? I don't think so besides lets be honest here, any company that has billions in annual global revenue including Microsoft SHOULD pay the 40% in taxes overseas becuase those taxes can be used by local governments as revenue to spur startups, research grants, local educational initiatives to give back to communities that need it the most. This corporate inversion is legal but just this is legal in and of itself does not make the method of Apple using corporate inversion to tax dodge on its obligation to pay the U.S. government its share in taxes does not make this right.

 For many years if not decade many companies in the U.S. thanks to corporate inversion have shipped their operations overseas so they can pay their workers lower wages and make the costs of manufacturing cheaper. This causes massive unemployment in the U.S. and hurts the consumer more becuase they are really paying the company to keep those jobs overseas at the expense of buying a cheaper product. Ths is what I call consumer subsidizing cheap overseas labor.
lmasseus
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lmasseus,
User Rank: Apprentice
1/6/2016 | 9:43:22 AM
GE pays No Taxes
This article should be about those corporations that pay zero taxes in the US.  
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