

Apple does not count foreign tax savings in its reported profits






Apple money
[Image Source: SomanyMP3s]





Source: Daily Mail

Comments     Threshold


nation states?
By Murloc on 11/5/2012 12:07:20 PM , Rating: 0
Apart from Ireland, there are no small nation states with low taxes in Europe.
Monaco is not a nation state, Liechtenstein isn't either.

Anyway I don't see why this is unethical, if they make money abroad and spend it abroad to make their phones, why should it be taxes in the US?

change the law if you don't like it.

RE: nation states?
By DNAgent on 11/5/2012 12:17:24 PM , Rating: 3
You know what wins elections? $$$ does.
You know what determines how Congress votes? $$$ does.
Who has that $$$? Corporations do.

The law is what corporations want it to be. The idea that individual American citizens still have the power to 'change the law' is generally preposterous.

RE: nation states?
By ebakke on 11/5/2012 12:51:40 PM , Rating: 5
Lame. When you're ready to stop sulking, stand up and join the adults actually trying to enact the changes you've written off as unattainable.

Peel back another layer of that onion. Ask the simple question: Why? Why does money influence elections? Why do wealthy individuals, corporations, unions, and interest groups lobby Congressmen for special favors? The answer is trivially simple: Because it works.

We peel back one more layer and ask again, why? Why does it work? Because we keep giving those elected officials more and more and more power. Pull the power, and suddenly your lobbying goes kaput. If giving Candidate A or his Super PAC $5M wouldn't get me an exemption to some new regulation, or a new tax rate, or whatever, then I wouldn't do it any more. If you want less corporate influence in governmental policies, start voting for candidates who will reduce the size, scope, power of the government. It's really that simple folks.

RE: nation states?
By Jeffk464 on 11/5/2012 1:06:19 PM , Rating: 2
Unfortunately the adults that are succesfully making changes are big money interests. Seems like every year they lock it down more and more. The corporations are people allowing unlimited money to buy elections was the nail in the coffin.

RE: nation states?
By Jeffk464 on 11/5/12, Rating: 0
RE: nation states?
By ebakke on 11/5/2012 4:43:34 PM , Rating: 4
You have missed the point entirely. WHY do people spend money on elections? They only spend money because it's effective. They only do it because they believe it will benefit them. And history has shown that belief to be accurate.

If we take back the power/authority we've given them (or maybe more accurately, they've taken without any contest from us) then it won't matter who spends whatever amount of money on the election. Sure, spend $5B convincing the electorate that John Doe is the best would-be Senator on the planet. Great. Good for you. Seems like a big waste of money when Sen Doe's authority isn't more than the true enumerated powers listed in our Constitution.

But as long as we're willing to accept a strong central government, we also must tolerate individuals seeking to take advantage of this power, as well as individuals seeking to gain the favor of those in power. Corporate, individual, and interest group lobbying is symptom; it is not the problem!!

RE: nation states?
By tayb on 11/5/2012 2:47:25 PM , Rating: 2
Americans can't agree on anything. The idea that we'll all band together for campaign finance reform is a joke in my opinion. There's no way there would be a consensus.

Congressional approval ratings are in the toilet. People are mad and upset with Congress. So what do they do? Continue voting for incumbents.

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RE: nation states?
By Jeffk464 on 11/5/2012 1:04:45 PM , Rating: 1
Yup, I agree 100% this country is a corpratocracy.

RE: nation states?
By Uncle on 11/5/12, Rating: -1
RE: nation states?
By MadMan007 on 11/5/2012 4:39:17 PM , Rating: 2
I'd say plutocracy is more accurate, with some oligarchy on the side for good measure.

RE: nation states?
By rdhood on 11/5/2012 5:09:10 PM , Rating: 1
The right word is "Fascism".


What do you call it when Government directs 1/6 of the economy (healthcare)? FASCISM

What do you call it when Government picks private enterprise winners and losers in energy? FASCISM

Obama openly laments that his government can't direct the economy like China. Wishes for total FASCIST state.

RE: nation states?
By FITCamaro on 11/5/2012 2:59:44 PM , Rating: 3
I guess your point would be valid if people weren't the one's who elect politicians.

No matter how much money corporations spend on elections, it is still up to citizens to be informed and decide for themselves how to vote. In that way, we have the power to change laws.

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Hmm... what to do when they are filled?

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RE: nation states?
By BZDTemp on 11/5/2012 12:22:22 PM , Rating: 5
The thing is Apple is doing what many(all?) multi-national companies do - they move their profit to locations with low or no tax. Thus in effect cheating everybody except perhaps the tax shelter where some lawyer is making a little money doing the work.

As it turns out Apple is not only being dicks with regards to how they make their money they are also dicks when it comes to paying taxes. Just one more reason to shop elsewhere.

RE: nation states?
By xti on 11/5/12, Rating: 0
RE: nation states?
By Solandri on 11/5/2012 1:03:11 PM , Rating: 3
Tragedy of the commons. Once one company starts doing it, other companies have to do it too just to remain competitive. Even if they don't want to do it. Punishing random companies that do it to make an example out of them won't change this, and so won't reduce the number of companies which do it. The tax laws need to be changed so there's no longer an incentive to do it.

RE: nation states?
By Schrag4 on 11/5/2012 2:31:49 PM , Rating: 2
How is NOT bringing profit from overseas to the US cheating anybody? If I'm not mistaken, Apple has already paid taxes on those profits where they were earned. What you're ask them to do is to pay a second tax on what's left in order to bring those dollars back to the US. If foreigners gave Apple money in exchange for products, how are US citizens being cheated out of taxes on those profits?

If I'm misinterpreting the situation, please let me know. Otherwise, what makes you think the US should be entitled taxes on foreign profits? It's not like Apple can spend that money in the US without first paying taxes to bring it here, right? Is it better to tax foreign profits again (already taxed overseas), incentivizing corporations like Apple to leave it overseas? Or would it be better to let them bring it back without a second tax hit so they can spend it on jobs/research/etc here?

And no, I'm not an Apple fan. The corporation in question is irrelevant to this argument. I happen to feel the same way you do about Apple, but for different reasons.

RE: nation states?
By Jeffk464 on 11/5/2012 3:31:40 PM , Rating: 2
Well, when you put it that way.

RE: nation states?
By Ringold on 11/5/2012 6:07:57 PM , Rating: 1

Exactly. We're the only OECD nation that even tries to confiscate profits companies make overseas. It's the height of liberal arrogance to believe that the US can tax profit no matter where on the planet it is made. Money made in other countries and already taxed in other countries is not ours to tax.

It's worth noting that every time the US enacts a tax holiday when companies can move that money back in to the US without paying those taxes, hundreds of billions flow back in.


RE: nation states?
By Reclaimer77 on 11/5/12, Rating: 0
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By KCjoker on 11/5/2012 5:48:15 PM , Rating: 2
This is so funny because people always complain about Microsoft. Look at Hollywood how they act like Apple is so cool, they always use Apple over Microsoft. Yet most of those same people are all about higher taxes and companies paying their "fair share." Think they and everyone else will stop buying Apple products because of this...nope.

RE: nation states?
By jimbojimbo on 11/5/2012 7:33:22 PM , Rating: 2
Nope, because image in America means more than anything.

