“This really is the most gargantuan ignorance on their part,” Worstall reports. “The $3.3 billion has nothing, nothing at all, to do with the $34.2 billion: something which any accountant at all could have told them. For a full explanation of what is going on see this piece from two weeks ago.”
“To put it simply, a pressure group, the Greenlining Institute, released a report that included that calculation that led to that 9.8% tax rate. Their calculation (and as I say, all the details are in that earlier post) was based on simple ignorance of how the US corporate taxation system works,” Worstall reports. “At least I assume it was ignorance, not mendacity… What the NYT/Greenlining calculation has done is compared the profits in 2011 not with the taxes paid on profits from 2011. It has compared profits in 2011 with the taxes calculated on the basis of 2010′s profits. Which is obviously clear and present nonsense, entire argle bargle of which at least the newspaper should be ashamed.”
“Any company that grows its profits quickly will have an apparently low tax rate with this method used. Because taxes paid actually in this year are always calculated from profits made last year. So what the NYT has really reported is that Apple’s profits have been growing quickly: something which I think we already knew,” Worstall reports. “The thing the story really shows is something entirely different. Appalling, ignorant, calculation cobbled together by small time think tank. Two weeks later it is stated as simple fact in the newspaper of record. So why not issue press releases stating anything at all that you want to believe? Who knows, maybe the New York Times will find it a ‘convenient’ fact and will endorse it for you? Although you might want to note that your “fact” had better be politically acceptable to said newspaper otherwise they won’t endorse it.”
Read more in the full article – recommended – here.
MacDailyNews Take: The New York Times has grown so shoddy that they can’t even employ competent hit men anymore. The New York Times is the paper of slanted publicity whores who regurgitate press releases filled with non-facts. What a joke the so-called “paper of record” (another joke) has become.
Apple should demand a prominent apology, if not sue The New York Times outright for their continuing stream of libel.
Apple to The New York Times: We are among the top payers of U.S. income tax – April 29, 2012
The New York Times: How Apple sidesteps billions in global taxes – April 28, 2012
The New York Times blows it, gets Apple CEO Tim Cook’s earnings spectacularly wrong – April 9, 2012
Rush Limbaugh: The New York Times has turned on Apple; they wouldn’t do this if Steve Jobs was alive – February 1, 2012
Apple CEO Tim Cook calls New York Times supplier report ‘patently false and offensive’ – January 27, 2012
Why did The New York Times revise their ‘iPad modest changes’ article and neglect to inform their readers? – March 8, 2012
The New York Times continues idiotic vendetta, claims Apple’s new iPad only offers ‘modest changes’ (UPDATED) – March 7, 2012