Apple's reputation intact after negative tax avoidance press
A report calls Apple's reputation "Teflon," referring to recent revelations of the company's tax practices and finds that public opinion went mostly unchanged when the story broke a week ago.
U.K.-based YouGov's BrandIndex, a daily brand perception tracker, found that when compared to a similar tax "scandal" involving GE, Apple faired very well and saw almost no decline in public reputation.
The online survey, which asks a panel of 2.5 million worldwide respondents about various brand issues, compared the fallout from the New York Times story regarding Apple's "diverted taxes" with another piece from the same paper involving GE's "zero tax bill." The exact number of respondents that participated in this particular study was not reported.
When survey respondents were asked the question, "Would you be proud or embarrassed to work for this brand?" Apple's "Reputation Score" went up from 52 to 58 a few days following the NYT article before eventually leveling out at its current 51. In comparison, when it was reported that GE made $14.2 billion in profits in 2010 but wasn't required to pay taxes and instead claimed a tax benefit of $3.2 billion, the company's score dropped severely. It took GE two months to bounce back to a score of 33 after falling to 23 a day after the story ran, followed by a bottom of 14 a week later. The survey measurements range from a score of 100 to -100.
Source: YouGov
Apple's tax practices made headlines when it was revealed that the world's most valuable tech company diverts parts of its international revenue stream to allegedly avoid paying high U.S. state taxes. According to the Times, Apple pays a 9.8 percent tax rate, though that number has been disputed.
U.K.-based YouGov's BrandIndex, a daily brand perception tracker, found that when compared to a similar tax "scandal" involving GE, Apple faired very well and saw almost no decline in public reputation.
The online survey, which asks a panel of 2.5 million worldwide respondents about various brand issues, compared the fallout from the New York Times story regarding Apple's "diverted taxes" with another piece from the same paper involving GE's "zero tax bill." The exact number of respondents that participated in this particular study was not reported.
When survey respondents were asked the question, "Would you be proud or embarrassed to work for this brand?" Apple's "Reputation Score" went up from 52 to 58 a few days following the NYT article before eventually leveling out at its current 51. In comparison, when it was reported that GE made $14.2 billion in profits in 2010 but wasn't required to pay taxes and instead claimed a tax benefit of $3.2 billion, the company's score dropped severely. It took GE two months to bounce back to a score of 33 after falling to 23 a day after the story ran, followed by a bottom of 14 a week later. The survey measurements range from a score of 100 to -100.
Source: YouGov
Apple's tax practices made headlines when it was revealed that the world's most valuable tech company diverts parts of its international revenue stream to allegedly avoid paying high U.S. state taxes. According to the Times, Apple pays a 9.8 percent tax rate, though that number has been disputed.
Comments
I think the reason is that it's a huge stretch to compare Apple to GE. GE paid zero taxes. None at all. Apple paid billions, although some think it should have been even higher. That's a pretty big difference.
Also, I read a Forbes article that claimed the NY Times report was sloppy reporting taxes based on 2010 profits against 2011 profits. The article claimed that Apple's tax rate was more like corporate normal 24% in 2010.
The NYT article was purely a hit piece. Why they did it, I have no idea. I'm just glad it didn't work.
I wonder if the larger public has now learned to ignore anything negative the media says about Apple since there have been so many manufactured controversies? It must be strange for all those millions of people who own Apple products to be constantly fed stories about how they don't work as advertised, explode, etc, when their own products work just fine. Or to be told they're a security nightmare when they've never encountered a virus or malware. Add in the recent revelations about Mike Daisey and at this point the public probably thinks anyone saying anything negative about Apple is either a rabid anti-fan or has an agenda.
Quote:
Originally Posted by Booga
I think the reason is that it's a huge stretch to compare Apple to GE. GE paid zero taxes. None at all. Apple paid billions, although some think it should have been even higher. That's a pretty big difference.
Bingo! That is a huge difference.
It's really sad that people would even be upset with these companies for fully-complying with the existing tax code. They should be livid with their legislators who both spend their money and who make up the tax code, complete with all of its loopholes that that these companies legally take adavantage of.
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Originally Posted by penchanted
Bingo! That is a huge difference.
It's really sad that people would even be upset with these companies for fully-complying with the existing tax code. They should be livid with their legislators who both spend their money and who make up the tax code, complete with all of its loopholes that that these companies legally take adavantage of.
It makes no difference to any of us personally what another person or another company paid in terms of taxes. All that matters to us personally is that WE don't like the idea that WE are getting stuck paying for everything. Tell me I'm wrong.
Also, it's time the US eliminates the income tax. It's harmful to Americans and distorts our economy in a very bad way. It is a needless disincentive to doing well. Of course, I believe all taxes are wrong-headed, but a flat tax or a consumption tax may be where our country is headed.
Quote:
Originally Posted by SpamSandwich
It makes no difference to any of us personally what another person or another company paid in terms of taxes. All that matters to us personally is that WE don't like the idea that WE are getting stuck paying for everything. Tell me I'm wrong.
Not exactly. I really like my country, and don't mind paying taxes to keep it working. But when I'm paying my fair share but see others not doing so, I don't like it. Some may argue over what constitutes a "fair share", but almost no one would argue 0% is it. Thus the huge difference between GE and Apple.
Quote:
Originally Posted by SpamSandwich
Also, it's time the US eliminates the income tax. It's harmful to Americans and distorts our economy in a very bad way. It is a needless disincentive to doing well.
We introduced it to pay for the Reconstruction after the Civil War.
… I think we're reconstructed by now.
"Apple's reputation intact after negative tax avoidance press"
American's despise our government nearly as much as we do the corporations which run it. Given that the 99% are every bit as greedy and stupid as the 1% who own us but considerably less well informed, it's hardly surprising that we flock to whoever provides the tastiest bread and the most entertaining circuses.
Of course few things are as fickle as brand "loyalty," and the moment Apple ceases to titillate and amuse the masses will flock to some other logo, in pursuit of a distinction but not a difference which will change absolutely nothing. Give us toys or give us… Oh, that's right. All we want is toys.
Apple it to be commended for demonstrating good business practice hat thrifty money management.
The fact that the NYT wrote the story is a matter of poor editorial choice. Nothing is louder that the snap sound as wallets snap closed to things like subscriptions!
Well, H&R BLOCK doesn't win customers by promising to "make you pay your fair share."
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Originally Posted by Tallest Skil
We introduced it to pay for the Reconstruction after the Civil War.
… I think we're reconstructed by now.
And we're most definitely heading toward "deconstruction".
Goes to show how detached they are. The people know who is benefitting from the Government and its bureaucracy.
Quote:
Originally Posted by Booga
Not exactly. I really like my country, and don't mind paying taxes to keep it working. But when I'm paying my fair share but see others not doing so, I don't like it. Some may argue over what constitutes a "fair share", but almost no one would argue 0% is it. Thus the huge difference between GE and Apple.
I love the US, but I don't love wasteful government. The problem is, everyone thinks that THEIR pet project or government funded kickback isn't wasteful. This is why I'd support no income tax, no minimum wage, no price controls and no bailouts or support for the oil industry, car companies, banking, housing, farms, etc. Level the playing field, get the nitpickers out of our way and let competition rebuild America.
Yea because the entire US income tax system is a gigantic fraud anyhow, and people are waking up to it:
read the book:
http://www.paynoincometax.com/pdf/federal_mafia.pdf
Watch the videos:
http://www.paynoincometax.com/great_giveaway.htm
Also the documentary movie, America: Freedom to Fascism:
http://freedomtofascism.com
Quote:
read the book:
http://www.paynoincometax.com/pdf/federal_mafia.pdf
Your links are all about income tax. What does it have to do with this story (VAT/corporate tax)?
Now read the truth...
http://en.wikipedia.org/wiki/Irwin_Schiff
"Irwin A. Schiff (born in February 24, 1928) is a prominent figure in the United States tax protestermovement. Schiff is known for writing and promoting literature that claims the United States income tax is applied incorrectly. He has lost several civil cases against the federal government and has a record of multiple convictions for various federal tax crimes. Schiff is serving a 13-plus year sentence for tax crimes (with his location listed as the Terre Haute Federal Correctional Institution). His projected release date is October 7, 2016.[1]"
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Originally Posted by Chris_CA
Your links are all about income tax. What does it have to do with this story (VAT/corporate tax)?
Now read the truth...
http://en.wikipedia.org/wiki/Irwin_Schiff
"Irwin A. Schiff (born in February 24, 1928) is a prominent figure in the United States tax protestermovement. Schiff is known for writing and promoting literature that claims the United States income tax is applied incorrectly. He has lost several civil cases against the federal government and has a record of multiple convictions for various federal tax crimes. Schiff is serving a 13-plus year sentence for tax crimes (with his location listed as the Terre Haute Federal Correctional Institution). His projected release date is October 7, 2016.[1]"
Although it is true that the Constitution allows Congress many enumerated powers, "authority over financial and budgetary matters, through the enumerated power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States"*, there is also a valid argument by "Eric Patashnik, (who) suggests that much of Congress's power to manage the budget has been lost when the entitlement state expanded since 'entitlements were institutionally detached from Congress's ordinary legislative routine and rhythm.'"*
* http://en.wikipedia.org/wiki/Powers_of_the_United_States_Congress
You may subscribe to the notion that everyone must "pay their fair share", whereas a significant number of us believe there is no such thing as a fair share, because the "rules" about what is considered "fair" are never applied equally. It isn't the job of the government to determine what is fair. That power belongs to individuals and we don't like being forced into obligations and debts to others.
Apple doesn't avoid tax. It merely chooses in which jurisdicition to place its taxable activities. Why should the US want all of the tax to the exclusion of the rest of the workd? Pure greed, that's why.
One man's tax avoidance is another man's tax minimalisation.
This is somewhat reassuring, that most people either don't care or don't fall for this type of horse-shit sensationalism and manufactured outrages. Which is all it's been, everything from Foxconn, to this newest tax 'controversy', has all been mindless, cynical click-bait with no real intrinsic value.