Some companies are loved by Americans because of their product line, not because they are noted for doing the right thing. Look at Disney – when I was young and if you were a long haired male, you were not welcome in Anaheim. It also was not a place consumer friendly toward minorities and if you made it clear you were a homosexual. Once Uncle Walt passed on so did Disney’s most reactionary stances.
In our modern era of political correctness companies are not so openly bigoted. But one thing some of them are not is willing to share in is the cost of operating the United States. There are tax loopholes that companies are taking advantage of and in doing so not paying their fair share of taxes. Some of the CEO’s whine that the tax law is badly written and they shouldn’t be forced to do the right thing. What the CEO’s of today who take such advantage refuse to see is that there are always tax loopholes and either a company is willing to do the right thing and pay their fair share or they are not.
While some CEO’s such as Tim Cook of Apple blame the Tax Laws for permitting their own egregious acts the spirit of being and acting American has sadly been lost. While Tim Cook says it would be madness to pay taxes that Apple doesn’t have to that is exactly what big business has done in the past. Even at the beginning of the industrial age when some of our business leaders were known as robber barons, paying taxes and not aggressively seeking ways to avoid them was doing the right thing and honestly, the American thing to do so that we could build continuously build and re-build our infrastructure.
Cook is basically saying that Apple will do continue to do the wrong thing until you make us do the right thing. That is not the response of someone committed to our country. That is the sentiment of a robber baron of the worst kind.
Note that today’s blog deals with taxes and doing the right thing only. I have not touched upon the sweatshops that Apple and other large United States companies are using in China to avoid paying workers a decent U.S. wage while exploiting those foreign workers.
“Apple relied on a “complex web of offshore entities” and U.S. tax loopholes to avoid paying billions of dollars in U.S. taxes on $44 billion in offshore income over the past four years, according to excerpts from a Senate subcommittee report to be released tomorrow as Apple CEO Tim Cook testifies on the company’s overseas operations.”
“The maker of iPhones and iPads used at least three foreign subsidiaries that it claims are not “tax resident in any nation” to help it avoid paying billions in “otherwise taxable offshore income,” the Senate Permanent Subcommittee on Investigations said in a statement today. The bi-partisan committee, headed by Carl Levin [D-Mich.] and John McCain [R-Ariz.] plans to issue a 40-page memorandum with findings and recommendations.”
“Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven,” Sen. Levin said in today’s statement. “Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere. We intend to highlight that gimmick and other Apple offshore tax avoidance tactics so that American working families who pay their share of taxes understand how offshore tax loopholes raise their tax burden, add to the federal deficit and ought to be closed.”
“The subcommittee, which questioned Microsoft and Hewlett-Packard in September 2012 as part of its look into “offshore profit shifting and tax avoidance” by multi-nationals, will take testimony from Cook, Apple CFO Peter Oppenheimer and Apple’s tax chief Phillip Bullock tomorrow. Apple earlier today released its talking points for the hearing, saying in a 17-page document that it “complies fully with both the laws and spirit of the laws” and that “Apple pays all its required taxes, both in this country and abroad.” Apple also noted that it is “likely the largest corporate income tax payer in the U.S.,” that it doesn’t use “tax gimmicks” and that it supports “comprehensive reform of the U.S. corporate tax systems…even though it would likely result in Apple paying more U.S. corporate tax.” http://www.forbes.com/sites/connieguglielmo/2013/05/20/apple-used-loopholes-to-skip-paying-44-billion-in-u-s-taxes-senate-committee-claims/
“Apple Inc Chief Executive Tim Cook dismissed as “total political crap” the notion that the tech giant was avoiding taxes.”
“Cook’s remarks, made on CBS’ 60 Minutes show, come amid a debate in the United States over corporations avoiding taxes through techniques such as so-called inversion deals, where a company redomiciles its tax base to another country.”
“Apple saves billions of dollars in taxes through subsidiaries in Ireland, where it declares much of its overseas profit.”
“Apple pays every tax dollar we owe,” Cook told 60 Minutes’ Charlie Rose, according to excerpts from the interview released on Friday. (http://cbsn.ws/1NtLSHA)”
“Cook said bringing profits back to the United States would cost him 40 percent. “I don’t think that’s a reasonable thing to do,” he said.”
“The Senate Permanent Subcommittee on Investigations probed Apple’s tax strategies and found that Apple in 2012 alone avoided paying $9 billion in U.S. taxes, using a strategy involving three offshore units with no discernible tax home, or “residence.”
“The press office of the subcommittee did not immediately return a request for comment on Cook’s remarks.”
“Apple holds $181.1 billion in offshore profits, more than any other U.S. company, and would owe an estimated $59.2 billion in taxes if it tried to bring the money back to the United States, a recent study based on SEC filings showed.”
“The current tax code was made for the industrial age, and not the “digital age,” Cook said.”
“It’s backwards. It’s awful for America. It should have been fixed many years ago.” http://www.huffingtonpost.com/entry/tim-cook-says-notion-that-apple-avoids-taxes-is-political-crap_5677639ae4b0b958f6571279