Apple lobbies against tax hikes proposed in $3.5T economic package

Posted:
in General Discussion
A lobbying group representing the interests of Apple has joined a coalition of corporate titans and industry organizations in a concerted effort to derail portions of President Joe Biden's $3.5 trillion economic agenda.

U.S. Capitol


The Business Roundtable, a group of U.S. business leaders that counts Apple CEO Tim Cook as a board member, is preparing to oppose corporate tax increases designed to fuel the Democratic spending initiative, reports The Washington Post.

Biden proposed a hike in corporate tax rates from 21% to 28%, while placing heftier burdens on profits earned overseas. Democratic lawmakers are hoping to push the laws through as a reconciliation bill, a procedure that allows Congress to pass legislation with a simple majority. Passage is not guaranteed by the 117th Congress, however, as Democrats enjoy only narrow control over both houses, a precarious position potentially vulnerable to intense lobbying.

Business Roundtable's concerns are part of a wider effort that targets key sections of Biden's budget plan. A "lobbying blitz" is being organized by the U.S. Chamber of Commerce, which seeks support from all corners to fight the economic package, including its cost, policy scope and tax demands, according to the report.

In a statement, Business Roundtable spokesperson Jessica Boulanger said the group is engaged in "a significant, multifaceted campaign" to fight tax increases, adding that it would "continue to ramp up our efforts in the coming weeks."

Organizations taking part in the strategy are expected to lean on traditional lawmaker lobbying as well as more modern maneuvering like advertising campaigns, sources told the publication. Companies and lobbying groups have committed to or are already running ads against the reconciliation package.

In addition to Business Roundtable, the RATE Coalition is also at odds with the Democrats' tax agenda. RATE Coalition includes members Disney, FedEx and Lockheed Martin. Broader opposition might also be mounted by the National Association of Manufacturers, a major advocacy group representing more than 14,000 members. NAM's board includes executives from Dow Inc., Exxon, Caterpillar and Johnson & Johnson. A parallel effort from the pharmaceuticals industry targets drug pricing proposals.

Guided by Biden's spending proposals, Democrats are crafting legislation that will expand Medicare coverage, combat climate change, increase access to education, introduce broad subsidies for low- and medium-income families and more.

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Comments

  • Reply 1 of 43
    Well they sure as hell wanted Biden elected. Be careful what you ask for, you might get it!
    TheObannonFilerinosauryojimbo007jimdreamworx
  • Reply 2 of 43
    entropysentropys Posts: 4,166member
    Ah, love all that OPM, hating having to use their money.

    Thatcher had something to say about these kinds of people.
    williamlondondesignrtoddzrx
  • Reply 3 of 43
    They got what they asked for and now are complaining that the authoritarians really meant it when they said they wanted to force everyone else to pay for their goals instead of letting people make decisions for themselves.  
    TheObannonFilewilliamlondonrinosaurtoddzrxjimdreamworx
  • Reply 4 of 43
    Cry me a river. Corporate execs tried to sell the public on a pack of lies back in 2017 about using that tax cut to invest in their employees. Everyone knows they didn't do much more than give themselves raises and do a bunch of stock buybacks. 
    cjgarrisonITGUYINSDwilliamlondongatorguyfastasleepbruce youngglennhelijahg
  • Reply 5 of 43
    22july201322july2013 Posts: 3,571member
    Apple could avoid looking hypocritical if they said that they wanted the tax hikes.
  • Reply 6 of 43
    entropysentropys Posts: 4,166member
    The funniest bit is this lot fed the crocodile thinking it would eat them last.
    williamlondondesignrrinosaurjimdreamworx
  • Reply 7 of 43
    centaur said:
    They got what they asked for and now are complaining that the authoritarians really meant it when they said they wanted to force everyone else to pay for their goals instead of letting people make decisions for themselves.  
    Well, many are not even paying taxes while getting massive benefits, COVID payouts, etc, and those that wanted Biden were careful for what they asked for… competent leadership to get our country back on track and out of a circus!   FYI, I just signed up, and will continue to do so over and over, if you keep posting political BS 
    williamlondonAlex_Vrevenantmuthuk_vanalingam
  • Reply 8 of 43
    centaur said:
    They got what they asked for and now are complaining that the authoritarians really meant it when they said they wanted to force everyone else to pay for their goals instead of letting people make decisions for themselves.  
    I’m still making decisions for myself, what’s the problem?  When massive corporations aren’t paying their fair share, if any taxes ar all, and yet we have corporations like Amazon benefiting greatly from our roads, educated employees, and USPS but don’t pay taxes to further develop oir decrepit infrastructure… these are the decisions you’re so proud of?!?!?!? 

    ITGUYINSDwilliamlondonFileMakerFellerAlex_Vbruce youngrevenantjcs2305muthuk_vanalingamelijahg
  • Reply 9 of 43
    entropys said:
    The funniest bit is this lot fed the crocodile thinking it would eat them last.
    I guess this croc looked better than the orange one.  
    Alex_V
  • Reply 10 of 43
    maestro64maestro64 Posts: 5,043member
    What most people fall to understand any increase cost added on to any company is just pass onto the consumers pay all taxes. Remember companies only exist as long as consumers buy what they are sell and at price they are willing to pay. 

    For those who think it's good idea that government owns and makes what people need, not what they want you would never have an iPhone. 
    designrentropysrinosaur
  • Reply 11 of 43
    maestro64maestro64 Posts: 5,043member
    Cry me a river. Corporate execs tried to sell the public on a pack of lies back in 2017 about using that tax cut to invest in their employees. Everyone knows they didn't do much more than give themselves raises and do a bunch of stock buybacks. 
    Apple did reinvest in Company and hired more people and added new facilities around the country. Yes they bought back stock and paid out more dividends and this benefited ever American who owns a retirement account with any indexed mutual fund or any number of high performing fund. This will allow people to retire with a nice nest egg. 
    designrkurai_kage
  • Reply 12 of 43
    entropysentropys Posts: 4,166member
    ITGUYINSD said:
    entropys said:
    The funniest bit is this lot fed the crocodile thinking it would eat them last.
    I guess this croc looked better than the orange one.  
    No doubt. Sometimes the cure can end up worse than the disease, ironically.
    designrrinosaur
  • Reply 13 of 43
    Good for Apple. Enough with the crazy spending . This I completely agree with the Republicans 
    rinosaurjimdreamworx
  • Reply 14 of 43
    wow amazing content. Thanks for sharing!
    edited September 2021
  • Reply 15 of 43
    dasjetta said:
    Well they sure as hell wanted Biden elected. Be careful what you ask for, you might get it!
    Hahahaha…..there you go, you put him there now quit whining and pay up what you have done
  • Reply 16 of 43
    crowleycrowley Posts: 10,453member
    Doval said:
    Good for Apple. Enough with the crazy spending . This I completely agree with the Republicans 
    The article makes it sound like they’re not lobbying against spending, they’re lobbying against the tax hikes that’ll pay for the spending. Which is typical; enjoy the fruit and complain about having to pay for it.
  • Reply 17 of 43
    Let's see, Tim Cook gets $14,769,259 annual compensation, plus, I saw an article recently that he had just taken $750 MILLION in stock benefits.
    Other Apple execs are making similar outrageous amounts of millions of dollars annual compensation.
      reference: <https://www1.salary.com/APPLE-INC-Executive-Salaries.html >
    One would think that they could afford to pay taxes. As would the corporation itself.
    As pointed out by a previous posts, they use the land, resources, people, infrastructure of this country, (and it is in dire need of support), so they should be happy to make the country stronger...   yes?   no?
    elijahg
  • Reply 18 of 43
    davidwdavidw Posts: 2,049member
    Let's see, Tim Cook gets $14,769,259 annual compensation, plus, I saw an article recently that he had just taken $750 MILLION in stock benefits.
    Other Apple execs are making similar outrageous amounts of millions of dollars annual compensation.
      reference: <https://www1.salary.com/APPLE-INC-Executive-Salaries.html >
    One would think that they could afford to pay taxes. As would the corporation itself.
    As pointed out by a previous posts, they use the land, resources, people, infrastructure of this country, (and it is in dire need of support), so they should be happy to make the country stronger...   yes?   no?
    You only "saw" the article, did you bother to READ it before making your ignorant comment? Tim Cook was awarded $750M in vested RSU and paid $390M in income taxes out of the $750M award. You can also bet that he also paid over 50% in incomes taxes (for Fed and State) for his $14.8M annual compensation. And most likely all the Apple executives probably paid in the neighborhood of 50% in incomes taxes on their annual salary. 

    If you want to collect the most in taxes from corporations, the best way to do that would be to make sure all the profits are awarded to their top executives as bonuses, instead of being taxed at the corporate rate. Bonuses are considered salary and tax deductible from corporate revenue.

    Say that a corporation was looking at reporting $100M in profit, but instead decided to award that $100M to their top executives as bonuses. Now the corporation will end up paying zero corporate tax and you will have a hissy fit over this. BUT, when the $100M was awarded as bonuses, it got taxed as salary. Thus, the government collected 37% Fed income tax (as most execs are probably in the top marginal tax bracket), $1.45% Medicare tax and  maybe about 8% in State income tax (in CA it would be 13%). So out of the $100M, the government got at least $45M in taxes when it was awarded as bonuses vs $21M if it were taxed at the corporate rate.  And this don't include the sales tax generated when the executives spends that money.  

    As someone that likes collecting more taxes from others, you should be jumping with joy, that Apple is paying their executives outrages amounts of millions of dollars annual compensation, instead of complaining about it. I guarantee you, the IRS is not complaining about it.    

    Apple pays over $40M a year in property taxes on just their "spaceship" HQ. Property taxes (and added bonds measures) pays for local police, fire and ambulance services, parks, public transportation, street lights, sewers, etc.. But most goes toward local education. I'm not aware that Apple is not paying property taxes on any of their properties. Be it vacant land or for an Apple Store. I'm not aware that Apple is getting resources like electricity or gas or water or garbage service, for free. Nor not have to pay the gasoline tax, that pays for road maintenance (or least that's what the gas tax is suppose to be for.), bridge tolls or auto registrations for company cars. Nor are they not paying a good salary to their well educated employees. (who in turn can afford to pay back any student loans they might have gotten.)  

     
    leavingthebiggkurai_kagetoddzrxjimdreamworx
  • Reply 19 of 43
    davidw said:
    Let's see, Tim Cook gets $14,769,259 annual compensation, plus, I saw an article recently that he had just taken $750 MILLION in stock benefits.
    Other Apple execs are making similar outrageous amounts of millions of dollars annual compensation.
      reference: <https://www1.salary.com/APPLE-INC-Executive-Salaries.html >
    One would think that they could afford to pay taxes. As would the corporation itself.
    As pointed out by a previous posts, they use the land, resources, people, infrastructure of this country, (and it is in dire need of support), so they should be happy to make the country stronger...   yes?   no?
    You only "saw" the article, did you bother to READ it before making your ignorant comment? Tim Cook was awarded $750M in vested RSU and paid $390M in income taxes out of the $750M award. You can also bet that he also paid over 50% in incomes taxes (for Fed and State) for his $14.8M annual compensation. And most likely all the Apple executives probably paid in the neighborhood of 50% in incomes taxes on their annual salary. 

    If you want to collect the most in taxes from corporations, the best way to do that would be to make sure all the profits are awarded to their top executives as bonuses, instead of being taxed at the corporate rate. Bonuses are considered salary and tax deductible from corporate revenue.

    Say that a corporation was looking at reporting $100M in profit, but instead decided to award that $100M to their top executives as bonuses. Now the corporation will end up paying zero corporate tax and you will have a hissy fit over this. BUT, when the $100M was awarded as bonuses, it got taxed as salary. Thus, the government collected 37% Fed income tax (as most execs are probably in the top marginal tax bracket), $1.45% Medicare tax and  maybe about 8% in State income tax (in CA it would be 13%). So out of the $100M, the government got at least $45M in taxes when it was awarded as bonuses vs $21M if it were taxed at the corporate rate.  And this don't include the sales tax generated when the executives spends that money.  

    As someone that likes collecting more taxes from others, you should be jumping with joy, that Apple is paying their executives outrages amounts of millions of dollars annual compensation, instead of complaining about it. I guarantee you, the IRS is not complaining about it.    

    Apple pays over $40M a year in property taxes on just their "spaceship" HQ. Property taxes (and added bonds measures) pays for local police, fire and ambulance services, parks, public transportation, street lights, sewers, etc.. But most goes toward local education. I'm not aware that Apple is not paying property taxes on any of their properties. Be it vacant land or for an Apple Store. I'm not aware that Apple is getting resources like electricity or gas or water or garbage service, for free. Nor not have to pay the gasoline tax, that pays for road maintenance (or least that's what the gas tax is suppose to be for.), bridge tolls or auto registrations for company cars. Nor are they not paying a good salary to their well educated employees. (who in turn can afford to pay back any student loans they might have gotten.)  

     
    WOW, someone who understands how the systems works. Only correction, most high income earners have some ways to shelter some of the income from taxes, but those shelters were created by the government and the same people today complaining everyone is not paying their fair share. For those who do not understand this you need to put on your ignorance hat. 

    BTW, In 2020 61% of the citizen of this country did not pay any Federal income taxes, This mean that 39% of the balance of people and companies paid all the taxes that run the county. If you are talking about everyone paying their fair share, why aren't people complaining about the 61%, they also benefit from all the services the government provides.
    toddzrxjimdreamworx
  • Reply 20 of 43
    maestro64 said:

    WOW, someone who understands how the systems works. Only correction, most high income earners have some ways to shelter some of the income from taxes, but those shelters were created by the government and the same people today complaining everyone is not paying their fair share. For those who do not understand this you need to put on your ignorance hat. 

    BTW, In 2020 61% of the citizen of this country did not pay any Federal income taxes, This mean that 39% of the balance of people and companies paid all the taxes that run the county. If you are talking about everyone paying their fair share, why aren't people complaining about the 61%, they also benefit from all the services the government provides.
    yes, but how many companies did NOT pay taxes? it reads as if you are against those who are receiving help from the government--as if all illegitimately. how many companies were looking for a new/another headquarters and were receiving low to no taxes for first 10 years? also, if you look at consumptive tax, poorer people pay more in percentage than their wealthy counterparts and that small percentage is a big deal if you make little. there are too many tax loopholes that make it easy to hide money and (I could be wrong) it is probably because a great many in the halls of government are using these loopholes themselves or are heavily funded by companies/individuals who use these loopholes. 
    in tandem with a tax overhaul there needs to be an audit of government waste. 
    gatorguy
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