Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax | TigerDroppings.com

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iPadThai
New Orleans Saints Fan
Member since Oct 2011
742 posts

Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax


quote:

The New York Times reports on a congressional investigation into the tax policies of technology giants, including Apple.

The Senate Permanent Subcommittee on Investigations is nearly finished with a year-long investigation into the methods that large technology companies use to avoid paying U.S. corporate income tax. Apple, for its part, allocates some 70 percent of its income to overseas affiliates where tax rates are much lower.

It appears that all of Apple's techniques are legal by U.S. law, though some politicians have said that corporations going to extraordinary lengths to avoid paying income tax and that they are violating the spirit of tax laws.

In its statement, Apple said it paid “an enormous amount of taxes” to local, state and federal governments. "In fiscal 2012 we paid $6 billion in federal corporate income taxes, which is 1 out of every 40 dollars in corporate income taxes collected by the U.S. government," it said.

Apple was one of the first companies to use the accounting scheme called a "Double Irish With a Dutch Sandwich", where profits are routed through Irish and Dutch subsidiaries before finally landing in the Caribbean. Now, hundreds of companies use those methods.

NYT



This post was edited on 1/6 at 12:20 am



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FunroePete
LSU Fan
Member since Dec 2012
450 posts

re: Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax


Double Irish With a Dutch Sandwich .. catchy





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guttata
LSU Fan
prairieville
Member since Feb 2006
20053 posts

re: Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax


I always thought the "spirit of tax laws" was to do everything you could to get your taxes the lowest. Sort of like a game. Seems like Apple was the best at it and everyone else followed.





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Lsut81
USA Fan
Member since Jun 2005
64559 posts

re: Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax


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Apple, for its part, allocates some 70 percent of its income to overseas affiliates where tax rates are much lower.


Doesn't the US have the highest corporate tax rates in the world?






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HurricaneDunc
Bowling Green Fan
Houston
Member since Nov 2008
9376 posts

re: Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax


quote:

Doesn't the US have the highest corporate tax rates in the world?



which is why a lower corporate tax rate would (should) actually increase tax revenue






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Lsut81
USA Fan
Member since Jun 2005
64559 posts

re: Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax


quote:

which is why a lower corporate tax rate would (should) actually increase tax revenue



Yup, it would bring more of that money from overseas back to the US...

Why the frick would ANYONE pay more in taxes than they legally have to? No intelligent businessman would...

Hell, you see Buffett up there saying "I can afford to pay more and millionaires should pay more" yet he has millions in outstanding taxes and his companies pay some of the lowest and ship money overseas.






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ironsides
LSU Fan
Nashville, TN
Member since May 2006
6048 posts

re: Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax


I thought google invented this and an exposé on it was run on Bloomberg like 2-3 years ago?





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Willie Stroker
LSU Fan
Houston...ish
Member since Sep 2008
4431 posts

re: Apple Paid $6B in Taxes Last Year, 1/40 of All U.S. Corporate Income Tax


Any predictions as to how politicians will respond to this? As wonderful as it would be for politicians to do nothing, the chances of a year long investigation resulting in no action seems slim.

With legislators, expect legislation.

So they'll either lower corporate tax rates (slim odds under this administration), or change the tax law. I'm going with added regulations to an already complicated tax system.

It will soon be illegal for corporations to order up a double irish with a dutch sandwich. To compensate, a DC area bar will make that a new menu item. Book it.






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