Apple benefits from so called "Free Trade Agreements" that do away with import taxes. Companies like Apple used to do quite a bit of manufacturing in the US because it didn't want to pay import taxes. So, the government caved to corporate demand and did away with these import taxes. Manufacturing went overseas, and all the taxes from wages and what not left with the jobs. Now the States and local governments are broke along with a good chunk of the population. Now, these greedy companies want to save by avoiding even more taxes? Ridiculous.
The states and local governments are broke because they spend like drunken sailors, not for lack of revenue.
I don't claim to understand or know the US tax system. But, wow. In Australia, company tax is 32%. This is a flat rate and everyone business pays it. I can't believe Apple or any company could only pay 25% tax - no wonder US national debt is so high.
In addition, personally I think that the "tax holiday" idea is just pathetic. Those companies are currently laundering money overseas - if you ask me. They should be penalised by what ever your federal gov tax agency is called.
The government could use the money to improve public education and scholarship opportunities so Apple has a better domestic talent pool to hire from.
Ahh the standard liberal thinking that money is a fixed size pie. The profits are overseas and have already been taxed. The money is STAYING overseas because the US wants to tax it again. The choice is 1) a "tax holiday" where the money comes back to the US and the gov collects something like 5% and the money can then be reinvested in the US economy generating economic growth and further tax revenues, OR 2) the gov can tax 35% of nothing because the money will stay overseas and either be held or invested in growing other economies.
There are plenty of anti corporate Americans and an entire political party who will push for option 2 because they don't want rich companies getting off easy and the government needs the revenue. This is called shooting yourself in the foot.
I would rather the money go back to the shareholders so they can spend it on fast women, the best booze, expensive cars, cuban cigars and big yachts instead of wasting it on taxes.
I thought the idea was to spend the money here in the USA.
I don't claim to understand or know the US tax system. But, wow. In Australia, company tax is 32%. This is a flat rate and everyone business pays it. I can't believe Apple or any company could only pay 25% tax - no wonder US national debt is so high.
In addition, personally I think that the "tax holiday" idea is just pathetic. Those companies are currently laundering money overseas - if you ask me. They should be penalised by what ever your federal gov tax agency is called.
Just my Aussie 2cents worth.
You have no clue. If Apple sells products in your country they pay yopur government 32% tax on the profits earned in your country. This seems fair to most people and most countries. The US gov does not think so. They think Apple should pay Aussie taxes on Aussie profits AND US taxes on Aussie profits. Other countries do not do this, and for good reasons. It is insanely stupid.
Now Apple can leave their Aussie profits down under, or they can bring them back to the US and pay the US taxes on the already taxed profits. They have chosen to keep the money overseas. That is good for you in Australia, it is bad for the US.
I don't claim to understand or know the US tax system. But, wow. In Australia, company tax is 32%. This is a flat rate and everyone business pays it. I can't believe Apple or any company could only pay 25% tax - no wonder US national debt is so high.
In addition, personally I think that the "tax holiday" idea is just pathetic. Those companies are currently laundering money overseas - if you ask me. They should be penalised by what ever your federal gov tax agency is called.
Just my Aussie 2cents worth.
The dirty little secret is that most US corporations don't pay nearly that much, since the tax code is so loaded with loopholes. Opponents of corporate taxes will never tell you that, though. They just quote the book rate, as though it was meaningful.
The states and local governments are broke because they spend like drunken sailors, not for lack of revenue.
oh brother... again.
Just as an example - the great state of Texas, the pinnicle of fiscal conservatism... has a state deficit equal to california(percentage wise) the pinnicle of liberal spending(to those un-informed). Are you calling Texans drunken sailors.. are you messing with Texas?
They are broke because of the largest recession since 1980 and possible 1932 has reduced tax revenue.
Damn... another rabbit hole - So you have a choice, cut back and continue to spiral down, or keep the motor going and run deficits and payback in good times. The problem is we never pay back in good times, we give tax breaks in good times.... what a scam. Get me out of this rabbit hole.
So Apple needs a 30% cut app developers hard work, but wants to only pay 5% tax for a whole year? I would bet anything that these corporations once again get their way, and that this gets extended for more than a year. I would also like a "Tax Holiday" for next year, and I promise to buy Apple products with the extra cash in my pocket. No seriously I Promise.
Why are we to believe they are going to spend all of this money in the US, and not just shuffle it around to other subsidiaries in other, faster-growing countries? If they lower the tax they should stipulate that the money should be spent here in the US and not anywhere they want.
?Our philosophy is simple?when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing,? said Steve Jobs, Apple?s CEO.
?Our philosophy is simple?You make money, we take a 30 percent share; when you make nothing, you keep 100 percent and we get nothing,? said Barak Obama, America's CEO.
Because those profits were realized overseas and and taxed at local jurisdiction's rates already. To bring them in, they have to pay additional taxes on top of what they already paid to local jurisdictions. If they don't bring them in, they dont have to pay (which is what they are doing now).
Also, I pay well over 40% of my income to taxes, is it fair that I pay 45% while you pay 26%?
Google pays 2.4% tax on money (88% of foreign earnings) they transfer from Ireland to Bermuda via The Netherlands.
Why are we to believe they are going to spend all of this money in the US, and not just shuffle it around to other subsidiaries in other, faster-growing countries? If they lower the tax they should stipulate that the money should be spent here in the US and not anywhere they want.
Because if they were going to spend it outside the US they would not bring it back to the US and pay a 5% tax on it first. They would (or would have already) shift it to wherever they want to invest it, bypassing the US.
Google pays 2.4% tax on money the transfer from Ireland to Bermuda via The Netherlands.
Legal yes, evil ???
The US collects taxes on business conducted outside the US and that has already been taxed by the local jurisdictions. Legal yes, fiscally stupid, yes, evil ????
How would you like it if Canada wanted to impose an income tax on your US income after you have already paid US income taxes? That would make no sense right? But somehow it is different for Google Ireland?
Because those profits were realized overseas and and taxed at local jurisdiction's rates already. To bring them in, they have to pay additional taxes on top of what they already paid to local jurisdictions. If they don't bring them in, they dont have to pay (which is what they are doing now).
Also, I pay well over 40% of my income to taxes, is it fair that I pay 45% while you pay 26%?
Well, the truth of the matter is that we are all paying approximately the same percent that you are, when you include federal, state, local, property, sales tax, etc. The question is who is more likely to afford it? The person that is making minimum wage and struggling to make ends meet or the rich billionaire who can own a mansion, abandon it for 10 years to demolish it to build another house? I don't understand how anyone can defend any corporation when it comes to taxes because no corporation pays the actual amount of what they are supposed to because of all the loopholes built into the system and their ability to move their money off-shore to not pay taxes.
I think that you are both talking about different things. You are talking about all taxes as I mentioned above and lamewing is likely talking about his tax bracket. The highest tax bracket is 35% and that's for people making close to 400K/year or more.
You have no clue. If Apple sells products in your country they pay yopur government 32% tax on the profits earned in your country. This seems fair to most people and most countries. The US gov does not think so. They think Apple should pay Aussie taxes on Aussie profits AND US taxes on Aussie profits. Other countries do not do this, and for good reasons. It is insanely stupid.
Now Apple can leave their Aussie profits down under, or they can bring them back to the US and pay the US taxes on the already taxed profits. They have chosen to keep the money overseas. That is good for you in Australia, it is bad for the US.
Countries and USA have bilateral agreements on avoiding dual taxation. So a person/corporation who earns $xxx in US pays tax on that earning and the same person, if he/she earns $yyy in, say Australia, pay Aussie tax.
But the problem here is countries like China and India offer tax incentives to US companies where the companies will not pay tax for 5 yrs or so during tax holiday period, and hence those companies keep money there by paying nothing in taxes. If the company wants to bring those earnings to US, the US government wants to tax that amount, because the US company did not pay any tax on that amount.
Any private corporation is evil when it comes to money. That includes Apple !
Comments
Apple benefits from so called "Free Trade Agreements" that do away with import taxes. Companies like Apple used to do quite a bit of manufacturing in the US because it didn't want to pay import taxes. So, the government caved to corporate demand and did away with these import taxes. Manufacturing went overseas, and all the taxes from wages and what not left with the jobs. Now the States and local governments are broke along with a good chunk of the population. Now, these greedy companies want to save by avoiding even more taxes? Ridiculous.
The states and local governments are broke because they spend like drunken sailors, not for lack of revenue.
oh brother....
I don't claim to understand or know the US tax system. But, wow. In Australia, company tax is 32%. This is a flat rate and everyone business pays it. I can't believe Apple or any company could only pay 25% tax - no wonder US national debt is so high.
In addition, personally I think that the "tax holiday" idea is just pathetic. Those companies are currently laundering money overseas - if you ask me. They should be penalised by what ever your federal gov tax agency is called.
Just my Aussie 2cents worth.
The government could use the money to improve public education and scholarship opportunities so Apple has a better domestic talent pool to hire from.
Ahh the standard liberal thinking that money is a fixed size pie. The profits are overseas and have already been taxed. The money is STAYING overseas because the US wants to tax it again. The choice is 1) a "tax holiday" where the money comes back to the US and the gov collects something like 5% and the money can then be reinvested in the US economy generating economic growth and further tax revenues, OR 2) the gov can tax 35% of nothing because the money will stay overseas and either be held or invested in growing other economies.
There are plenty of anti corporate Americans and an entire political party who will push for option 2 because they don't want rich companies getting off easy and the government needs the revenue. This is called shooting yourself in the foot.
I would rather the money go back to the shareholders so they can spend it on fast women, the best booze, expensive cars, cuban cigars and big yachts instead of wasting it on taxes.
I thought the idea was to spend the money here in the USA.
I don't claim to understand or know the US tax system. But, wow. In Australia, company tax is 32%. This is a flat rate and everyone business pays it. I can't believe Apple or any company could only pay 25% tax - no wonder US national debt is so high.
In addition, personally I think that the "tax holiday" idea is just pathetic. Those companies are currently laundering money overseas - if you ask me. They should be penalised by what ever your federal gov tax agency is called.
Just my Aussie 2cents worth.
You have no clue. If Apple sells products in your country they pay yopur government 32% tax on the profits earned in your country. This seems fair to most people and most countries. The US gov does not think so. They think Apple should pay Aussie taxes on Aussie profits AND US taxes on Aussie profits. Other countries do not do this, and for good reasons. It is insanely stupid.
Now Apple can leave their Aussie profits down under, or they can bring them back to the US and pay the US taxes on the already taxed profits. They have chosen to keep the money overseas. That is good for you in Australia, it is bad for the US.
I don't claim to understand or know the US tax system. But, wow. In Australia, company tax is 32%. This is a flat rate and everyone business pays it. I can't believe Apple or any company could only pay 25% tax - no wonder US national debt is so high.
In addition, personally I think that the "tax holiday" idea is just pathetic. Those companies are currently laundering money overseas - if you ask me. They should be penalised by what ever your federal gov tax agency is called.
Just my Aussie 2cents worth.
The dirty little secret is that most US corporations don't pay nearly that much, since the tax code is so loaded with loopholes. Opponents of corporate taxes will never tell you that, though. They just quote the book rate, as though it was meaningful.
The states and local governments are broke because they spend like drunken sailors, not for lack of revenue.
oh brother... again.
Just as an example - the great state of Texas, the pinnicle of fiscal conservatism... has a state deficit equal to california(percentage wise) the pinnicle of liberal spending(to those un-informed). Are you calling Texans drunken sailors.. are you messing with Texas?
http://www.dallasnews.com/news/polit...eep-to-571.ece
They are broke because of the largest recession since 1980 and possible 1932 has reduced tax revenue.
Damn... another rabbit hole - So you have a choice, cut back and continue to spiral down, or keep the motor going and run deficits and payback in good times. The problem is we never pay back in good times, we give tax breaks in good times.... what a scam. Get me out of this rabbit hole.
So Apple needs a 30% cut app developers hard work, but wants to only pay 5% tax for a whole year? I would bet anything that these corporations once again get their way, and that this gets extended for more than a year. I would also like a "Tax Holiday" for next year, and I promise to buy Apple products with the extra cash in my pocket. No seriously I Promise.
Me too!
Can I get an Amen
No but I can suggest you get an econ 101 book and learn to not cheer for policies that directly harm you.
How long before these major corporations move their head office to Canada where the corporate tax is half what it is in the US?
Hmmmm it does appear that Canada has a lower rate, whether the 'effective' rate is lower is another question.
Plus, how is health care paid in Canada, in US, the company provides and that cost is tax free(ie it can deduct from their taxes).
Guess Im saying its very hard to compare country rates at the basic level.
Need 'tax experts' to figure out the true advantage.
?Our philosophy is simple?You make money, we take a 30 percent share; when you make nothing, you keep 100 percent and we get nothing,? said Barak Obama, America's CEO.
Because those profits were realized overseas and and taxed at local jurisdiction's rates already. To bring them in, they have to pay additional taxes on top of what they already paid to local jurisdictions. If they don't bring them in, they dont have to pay (which is what they are doing now).
Also, I pay well over 40% of my income to taxes, is it fair that I pay 45% while you pay 26%?
Google pays 2.4% tax on money (88% of foreign earnings) they transfer from Ireland to Bermuda via The Netherlands.
Legal yes, evil ???
Why are we to believe they are going to spend all of this money in the US, and not just shuffle it around to other subsidiaries in other, faster-growing countries? If they lower the tax they should stipulate that the money should be spent here in the US and not anywhere they want.
Because if they were going to spend it outside the US they would not bring it back to the US and pay a 5% tax on it first. They would (or would have already) shift it to wherever they want to invest it, bypassing the US.
Oh the irony....Apple (and others) not wanting to pay 30%.
Maybe IRS should make a rule that any company with investors on US territory must use the IRS App Store and pay 30% to the IRS?
Google pays 2.4% tax on money the transfer from Ireland to Bermuda via The Netherlands.
Legal yes, evil ???
The US collects taxes on business conducted outside the US and that has already been taxed by the local jurisdictions. Legal yes, fiscally stupid, yes, evil ????
How would you like it if Canada wanted to impose an income tax on your US income after you have already paid US income taxes? That would make no sense right? But somehow it is different for Google Ireland?
Because those profits were realized overseas and and taxed at local jurisdiction's rates already. To bring them in, they have to pay additional taxes on top of what they already paid to local jurisdictions. If they don't bring them in, they dont have to pay (which is what they are doing now).
Also, I pay well over 40% of my income to taxes, is it fair that I pay 45% while you pay 26%?
Well, the truth of the matter is that we are all paying approximately the same percent that you are, when you include federal, state, local, property, sales tax, etc. The question is who is more likely to afford it? The person that is making minimum wage and struggling to make ends meet or the rich billionaire who can own a mansion, abandon it for 10 years to demolish it to build another house? I don't understand how anyone can defend any corporation when it comes to taxes because no corporation pays the actual amount of what they are supposed to because of all the loopholes built into the system and their ability to move their money off-shore to not pay taxes.
I think that you are both talking about different things. You are talking about all taxes as I mentioned above and lamewing is likely talking about his tax bracket. The highest tax bracket is 35% and that's for people making close to 400K/year or more.
You have no clue. If Apple sells products in your country they pay yopur government 32% tax on the profits earned in your country. This seems fair to most people and most countries. The US gov does not think so. They think Apple should pay Aussie taxes on Aussie profits AND US taxes on Aussie profits. Other countries do not do this, and for good reasons. It is insanely stupid.
Now Apple can leave their Aussie profits down under, or they can bring them back to the US and pay the US taxes on the already taxed profits. They have chosen to keep the money overseas. That is good for you in Australia, it is bad for the US.
Countries and USA have bilateral agreements on avoiding dual taxation. So a person/corporation who earns $xxx in US pays tax on that earning and the same person, if he/she earns $yyy in, say Australia, pay Aussie tax.
But the problem here is countries like China and India offer tax incentives to US companies where the companies will not pay tax for 5 yrs or so during tax holiday period, and hence those companies keep money there by paying nothing in taxes. If the company wants to bring those earnings to US, the US government wants to tax that amount, because the US company did not pay any tax on that amount.
Any private corporation is evil when it comes to money. That includes Apple !