Tim Cook testifies: Apple pays all of the US taxes it owes

Posted:
in General Discussion edited January 2014
Appearing before a U.S. Senate subcommittee on Tuesday, Apple Chief Executive Tim Cook defended his company as a proud American business that pays more in taxes than any other U.S. corporation.

Testify


Cook's opening remarks touted Apple's pride in being an American-born company that has contributed billions of dollars to the U.S. economy. He noted that Apple paid $6 billion to the U.S. Treasury last year, and reiterated the fact that the company has directly or indirectly been responsible for the creation of 600,000 American jobs.

"Apple has real operations in real places with Apple employees selling real products to real customers," Cook said. "We pay all of the taxes we owe ? every single dollar. We not only comply with the laws, but we comply with the spirit of the laws."

Cook, along with Apple Chief Financial Officer Peter Oppenheimer, was called before the U.S. Senate Permanent Subcommittee on Investigations, which is looking into loopholes in American tax laws. The subcommittee has chosen to focus on Apple, because of what officials have called a unique strategy of utilizing "ghost" corporations in Ireland to avoid U.S. corporate taxes.

As part of its testimony, Apple has asked legislators to consider making sweeping changes to the U.S. tax code in its current form. The company has more than $100 billion in cash stored overseas ? money that Apple executives have no current plans to repatriate because of the tax rates.

"It would be very expensive to bring that cash back to the United States," Cook told the subcommittee. "Unfortunately, the tax code has not kept up with the digital age."

The Apple CEO also made note of his company's plans to assemble an entire Mac line in the U.S. this year. Cook revealed to the subcommittee that those machines will be assembled in Texas, though he declined to name specifically which product will be made in America.
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Comments

  • Reply 2 of 96
    mj1970mj1970 Posts: 9,002member


    John McCain is an asshole.

  • Reply 3 of 96
    stefstef Posts: 87member
    Cook has so much more class than McCain.
  • Reply 4 of 96
    anantksundaramanantksundaram Posts: 19,114member


    McCain's questioning of Cook shows he's completely lost it...... what a clueless man.


     


    Sad day for AZ, and a once-great senator.

  • Reply 5 of 96
    philboogiephilboogie Posts: 7,438member
  • Reply 6 of 96
    stefstef Posts: 87member


    California cool trumps DC sleaze.

  • Reply 7 of 96
    anantksundaramanantksundaram Posts: 19,114member


    Cook's answer regarding 'unfairness', while decent, should have simply pointed out to McCain that the true unfairness is in how US multinationals like Apple that are disadvantaged compared to non-US competitors who are incorporated in countries with a territorial (not worldwide) taxation system.


     


    I am truly surprised that he did not bring that up.


     


    Doesn't say much -- at least, to me -- about the quality of the advice he's getting from Oppenheimer and crew on this.

  • Reply 8 of 96
    dominoxmldominoxml Posts: 110member

    Quote:

    Originally Posted by PhilBoogie View Post





    Excellent! Will need to watch it on my Mac, as I can't find a Flash player for my iPad...


    Should work on the iPad: http://www.nbcnews.com/video/nbcnews.com/51950319


     


    Currently they have a ten minutes break.

  • Reply 9 of 96
    steven n.steven n. Posts: 1,112member

    Quote:

    Originally Posted by anantksundaram View Post


    McCain's questioning of Cook shows he's completely lost it...... what a clueless man.


     


    Sad day for AZ, and a once-great senator.



    He did much better than Levin's question's. That man seems to not know any of the laws he has helped pass.

  • Reply 10 of 96
    maestro64maestro64 Posts: 4,527member
    The other thing Apple should say, besides the $6B they pay in corporate taxes, they should also state how much employee withholding they pay the government for salary plus stock option payouts. They also point out how much they collect for SS and pay to the government.

    Not only do that pay corporate taxes but all the highly paid employee they employ in the US also pay taxes. This is the part the government never factors in, as long as companies pay their people well the government get more money since individual have far less loop hole.
  • Reply 11 of 96
    rayzrayz Posts: 814member

    Quote:

    Originally Posted by anantksundaram View Post


    Cook's answer regarding 'unfairness', while decent, should have simply pointed out to McCain that the true unfairness is in how US multinationals like Apple that are disadvantaged compared to non-US competitors who are incorporated in countries with a territorial (not worldwide) taxation system.


     


    I am truly surprised that he did not bring that up.


     


    Doesn't say much -- at least, to me -- about the quality of the advice he's getting from Oppenheimer and crew on this.



     


    It's probably better to stick to the facts and numbers. Don't get drawn into what and what is not 'fair'.

  • Reply 12 of 96
    dick applebaumdick applebaum Posts: 12,506member
    It is amazing to me that the 2 Senators questioning so far (Levin D MI, McCain R AZ)[B][I] refuse to understand [/I][/B] that this money was earned in foreign countries and all taxes were paid in those countries. The fact that Apple chooses to [B][I] concentrate management [/I][/B] of the profits centrally in Ireland is for efficiency and investment leverage.

    All these 2 Senators see is that there is some multi-billion dollar amount that they think that [B][I]they somehow deserve to tax![/I][/B]

    [B][I]I am ashamed and embarrassed to be governed by anyone so willfully stupid and stubborn.[/I][/B]
  • Reply 13 of 96
    anantksundaramanantksundaram Posts: 19,114member

    Quote:

    Originally Posted by Rayz View Post




    Quote:

    Originally Posted by anantksundaram View Post


    Cook's answer regarding 'unfairness', while decent, should have simply pointed out to McCain that the true unfairness is in how US multinationals like Apple that are disadvantaged compared to non-US competitors who are incorporated in countries with a territorial (not worldwide) taxation system.


     


    I am truly surprised that he did not bring that up.


     


    Doesn't say much -- at least, to me -- about the quality of the advice he's getting from Oppenheimer and crew on this.



     


    It's probably better to stick to the facts and numbers. Don't get drawn into what and what is not 'fair'.



    You have point there.


     


    However, Cook is also wading into issues of tax reform (see yesterday's AI story on this, and Cook's testimony). The biggest -- and simplest one -- would be to move to a territorial taxation system: http://www.crs.gov/pages/Reports.aspx?PRODCODE=R41852

  • Reply 14 of 96


    I would love to see Mr. Cook point out the list of other companies that end up paying ZILCH for taxes, like General Electric. Heck, GE even gets tax money BACK each year.

  • Reply 15 of 96
    apple ][apple ][ Posts: 8,582member


    Rand Paul seems to be one of the few politicians with any common sense, at least in this case.


     


     


  • Reply 16 of 96
    pendergastpendergast Posts: 1,358member


    Not relevant to the discussion, but every time that nervous looking guy with the glasses and forehead glare/flop sweat speaks I want to use his name and shout "BULLOCKS!!!".


     


    Not that I disagree with him, and he seems far more intelligent than the Mr. Johnson doing the (dumb) questioning.


     


    How much is Congress paying Cook for this? I'm pretty sure an hour of his time is worth a pretty penny, and that's just for coffee. Fair is fair, and the market has already established his going rate.

  • Reply 17 of 96
    slurpyslurpy Posts: 5,118member


    I don't think I will watch this, I might snap listening to McCain vomit out more twisted, self-righteous drivel, attempting to crucify a company that has benefitted this country more than he could ever hope to do. His last few years have shown the man is nothing more than a vengeful, vindictive individual who is still butthurt by his 2011 loss. You know, when he made the cynical judgement of introducing us to Sarah Palin, out of a desire to win, and in complete contempt of this country. He's everything wrong with politics and politicians, and I can't believe I used to have a shred of respect for him. 

  • Reply 18 of 96
    anantksundaramanantksundaram Posts: 19,114member


    Sen. Ayotte brought up territorial taxation.


     


    Cook's answer suggested to me that he did not quite understand the issue.

  • Reply 19 of 96
    gatorguygatorguy Posts: 20,451member

    Quote:

    Originally Posted by Dick Applebaum View Post



    It is amazing to me that the 2 Senators questioning so far (Levin D MI, McCain R AZ) refuse to understand that this money was earned in foreign countries and all taxes were paid in those countries. The fact that Apple chooses to concentrate management of the profits centrally in Ireland is for efficiency and investment leverage.


    That might not be true according to the Senate investigators. They report there's ten's of billions in earnings that have never been taxed by anyone as Apple doesn't claim any country of residence for a couple of those Ireland-located companies, and no Corporate tax filings were made regarding those for 5 years or more.


     


    According to Apple themselves their overall tax rate on foreign earnings was 1.9% in 2012.

  • Reply 20 of 96
    2oh12oh1 Posts: 501member


    I love Apple.  I've been a diehard Apple fan since the days of the Quadra.  But I don't like corporate trickery to get around taxes.  If Microsoft was doing this, we'd be ripping them apart.  I wish our government would close these tax loopholes.  I do think it's funny that Republicans are complaining, when they're the ones who fight to create loopholes for corporations and the top 1% in the first place.

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