Apple CEO Tim Cook calls US tax code outdated and 'awful for America'
The full interview between Charlie Rose and Apple Chief Executive Tim Cook will air this Sunday, but CBS has posted a teaser clip from the conversation, in which Cook again defended his company's tax policies, stating that they pay more than any other company in a "backwards" system.

Credit: CBS.
Cook's aggressive comments are even more forceful than some he has made in the past, but the message remains the same: Apple pays every dollar it owes, and does not illegally avoid any U.S. taxes. He said the same more than two years ago, when he testified before the U.S. Congress.
Cook's latest comments will air on broadcast television this Sunday on 60 Minutes, and a minute-long clip from the interview was shared online on Friday. During the conversation with Rose, Cook noted that his company pays more taxes than anyone else in the U.S.
"We happily pay that," he said.
The question, however, centers around the money Apple earns overseas. More than $200 billion of it rests internationally, because repatriation taxes are excessively high, in the eyes of Cook and many other business executives.
Cook told Rose that he would "love to bring it home," but current policies are outdated and unfair.
"It would cost me 40 percent to bring it home, and I don't think that's a reasonable thing to do," Cook said. "This is a tax code, Charlie, that was made for the industrial age, not the digital age. It's backwards. It's awful for America. It should have been fixed many years ago. It's past time to get it done."
After he testified before Congress in 2013, some politicians concluded that Apple was involved in a "scheme" to pay little or no taxes to the U.S. When questioned about that conclusion by Rose, Cook responded fiercely.
"That is total political crap," he said. "There is no truth behind it. Apple pays every tax dollar we owe."
Apple has been a vocal proponent of corporate tax reform in the U.S., but it's also faced scrutiny overseas. The European Union is in the midst of an investigation into Apple's tax practices, though Apple has also steadfastly denied allegations that it avoids taxes in Europe as well.

Credit: CBS.
Cook's aggressive comments are even more forceful than some he has made in the past, but the message remains the same: Apple pays every dollar it owes, and does not illegally avoid any U.S. taxes. He said the same more than two years ago, when he testified before the U.S. Congress.
Cook's latest comments will air on broadcast television this Sunday on 60 Minutes, and a minute-long clip from the interview was shared online on Friday. During the conversation with Rose, Cook noted that his company pays more taxes than anyone else in the U.S.
"We happily pay that," he said.
The question, however, centers around the money Apple earns overseas. More than $200 billion of it rests internationally, because repatriation taxes are excessively high, in the eyes of Cook and many other business executives.
Cook told Rose that he would "love to bring it home," but current policies are outdated and unfair.
"It would cost me 40 percent to bring it home, and I don't think that's a reasonable thing to do," Cook said. "This is a tax code, Charlie, that was made for the industrial age, not the digital age. It's backwards. It's awful for America. It should have been fixed many years ago. It's past time to get it done."
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After he testified before Congress in 2013, some politicians concluded that Apple was involved in a "scheme" to pay little or no taxes to the U.S. When questioned about that conclusion by Rose, Cook responded fiercely.
"That is total political crap," he said. "There is no truth behind it. Apple pays every tax dollar we owe."
Apple has been a vocal proponent of corporate tax reform in the U.S., but it's also faced scrutiny overseas. The European Union is in the midst of an investigation into Apple's tax practices, though Apple has also steadfastly denied allegations that it avoids taxes in Europe as well.
Comments
If the US rate is 35%, less the corporate taxes already paid overseas in the country of origin, it couldn't be anywhere close to 40% to bring it home could it? Am I missing something?
Has there ever been a billionaire who didn't think the tax laws were bad or outdated?
what Cook doesnt want is for Apple to give the feds 40% of the profit from goods they built and sold overseas. i dont see that being different than my US friends who work overseas and dont want to or dont pay US income tax.
Deal with the facts. Thirty-five per cent is ridiculous, outdated, in the age of global economy.
Yes. If it's between you and Tim Cook, yes.
It would be better to do away with the corporate income tax and just charge a VAT on all goods and services sold in the US. Whether the money is collected from profit then added to the markup of manufactured goods, or after when it goes on sale - it in the end comes out of the consumers pockets sometime. If you charge a VAT then you will end up making sure the tax cannot be moved around through services by other wholly owned companies and paying very little in the US. Also you would in essence be exporting goods and services free of taxes making the US much more competitive and eventually making manufacturing in the US more attractive. Apple probably has almost 200 billion dollars invested elsewhere because there it would cost them to bring it back to the US and then sit in bank and investment accounts in the US. Essentially the US is making it more attractive for corporations to keep trillions of dollars invested in other countries. Nuts!
Still doesn't account for the taxes Apple already paid on those profits. Surely Apple paid something on it already and that would be deducted from what is stilled owed to the US, right? For example if they paid 12% to the Irish the remaining corporate taxes owed to the Feds would be 23% if they brought it home. If Cook's comment was close to accurate it would presume they've paid nothing to anyone. That's why 40% doesn't sound like it could possibly be right.
Obviously any company have to pay only the difference of 40% - paid taxes, but overall 40% tax for profit that was earned outside US is not favored by any corporation.
That's my understanding.
Also most of Europe profit is routed through Ireland at 2% rate, so to bring that profit back AAPL have to pay 38%(40%-2% Ireland Tax) of Tax.
China should be reasonable at 15% difference.(40%-25% China Tax)
FairTax.org
They leave profits overseas
Buy companies overseas with their offshore funds
Expand their operations overseas with their offshore funds
Sell Bonds in the US to pay Dividends to Shareholders
Complain about the repatriation Taxes
The key point missing from the list is "Bring profits from overseas back to US". If they won't bring it back, we need to fix the system so that they will. Why is the US against businesses bringing money to the US that they earned overseas? With an estimated 2 Trillion overseas doing nothing for the American economy, you would think we could get this fixed. Leaving the existing tax code in place which forces the money (and most importantly the investments that occur with this money) to stay outside the US is just wrong.