"Hey Siri" support and possibly wireless charging case alongside AirPower charging mat.
Apple Paid $6 Billion in Federal Income Tax in 2012, 1/40 of All U.S. Corporate Income Tax Collected
The New York Times reports on a congressional investigation into the tax policies of technology giants, including Apple.The Senate Permanent Subcommittee on Investigations is nearly finished with a year-long investigation into the methods that large technology companies use to avoid paying U.S. corporate income tax. Apple, for its part, allocates some 70 percent of its income to overseas affiliates where tax rates are much lower.
It appears that all of Apple's techniques are legal by U.S. law, though some politicians have said that corporations going to extraordinary lengths to avoid paying income tax and that they are violating the spirit of tax laws.
In its statement, Apple said it paid “an enormous amount of taxes” to local, state and federal governments. "In fiscal 2012 we paid $6 billion in federal corporate income taxes, which is 1 out of every 40 dollars in corporate income taxes collected by the U.S. government," it said.Apple was one of the first companies to use the accounting scheme called a "Double Irish With a Dutch Sandwich", where profits are routed through Irish and Dutch subsidiaries before finally landing in the Caribbean. Now, hundreds of companies use those methods.
Apple also has moved revenue to its Braeburn subsidiary in Nevada and International locales where the company pays little to no tax.
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77 months ago
At our current spending rate that will last us about a 1/2 day.
We don't have a revenue problem.
We don't have a revenue problem.
77 months ago
The easy solution is to eliminate the corporate income tax altogether. Perhaps replace it with a small consumption tax on the ultimate buyer. At the end of the day corporations just collect taxes. People (whether customers, employees, or shareholders) ultimately bear the burden of corporate taxes.
Barring that, then just lower the corporate tax rate to what other countries have, and don't tax overseas income (most countries don't). The current system creates a perverse incentive for multi-national companies to leave their profits overseas, since they would wind up paying the difference between 35% and the foreign rate if they brought the money home. We gave a tax holiday to multinationals in 2004 and companies repatriated billions of dollars.
Barring that, then just lower the corporate tax rate to what other countries have, and don't tax overseas income (most countries don't). The current system creates a perverse incentive for multi-national companies to leave their profits overseas, since they would wind up paying the difference between 35% and the foreign rate if they brought the money home. We gave a tax holiday to multinationals in 2004 and companies repatriated billions of dollars.
77 months ago
What do you think would happen if corporate tax went away?
1. Corporations will lower their service costs
2. Pocket it all for Upper Mgmt bonuses
1. Corporations will lower their service costs
2. Pocket it all for Upper Mgmt bonuses
77 months ago
Just goes to show how little anybody else is paying. Something's definitely broken.
77 months ago
The easy solution is to eliminate the corporate income tax altogether
A good idea except corporations are given the rights of an individual. They should therefore pay taxes as such.
77 months ago
As an Intuit employee, I'm curious as to why the Mint iOS app logo is being used on this story?
77 months ago
I like this. This way everyone would pay their "fair share". (including illegals)
It wouldn't be at all fair. Sales tax is regressive.Taxation based on everyday essentials like food (e.g. sales tax, salt tax), clothing (value added tax), transport (fuel tax), energy (carbon tax) and housing (council tax, window tax) is frequently regressive. The income elasticity of demand of food for example is usually less than 1 (inelastic) (see Engel's law) and therefore as a household's income rises, even significantly, the tax collected remains almost the same. So as a proportion of available expenditure the tax burden falls far more heavily on households with lower incomes.
http://en.wikipedia.org/wiki/Regressive_tax
77 months ago
In related news, 12 billion worth of iPads were bought for US schools.
Lol jk most schools can't even afford paper.
Lol jk most schools can't even afford paper.
77 months ago
It is astounding that Apple pays 1/40 (2.5%) of ALL corporate taxes collected nationwide. Their revenues are not as high as some corporations, but because they have high margins, they have high taxable income.
It is right and proper that divisions located in foreign countries not also pay tax here. Them's the rules. In fact if Apple were to be so bold as to bring money back to the US, they would be taxed AGAIN according to current law and contrary to every other major country. If anything they should relocate their HQ to shut people up. But they are "patriotic".
As for Nevada, that does not avoid federal income tax, only state income tax.
Our country is vastly overtaxed (18% of GDP) and overspends (25% of GDP) which sucks oxygen out of the free market directly and by diverting investment capital (18%-25%=-7%) to government bonds to finance the debt. If that was not happening those investors would have to chase commercial paper (or infrastructure bonds!) which would help every company in the US who wants to expand and hire. The reverse is at play now.
I sincerely believe this post is on topic. That is my intention.
Rocketman
It is right and proper that divisions located in foreign countries not also pay tax here. Them's the rules. In fact if Apple were to be so bold as to bring money back to the US, they would be taxed AGAIN according to current law and contrary to every other major country. If anything they should relocate their HQ to shut people up. But they are "patriotic".
As for Nevada, that does not avoid federal income tax, only state income tax.
Our country is vastly overtaxed (18% of GDP) and overspends (25% of GDP) which sucks oxygen out of the free market directly and by diverting investment capital (18%-25%=-7%) to government bonds to finance the debt. If that was not happening those investors would have to chase commercial paper (or infrastructure bonds!) which would help every company in the US who wants to expand and hire. The reverse is at play now.
I sincerely believe this post is on topic. That is my intention.
Rocketman
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