“When quizzed about its tax practices, Apple CEO Tim Cook told a Senate subcommittee his company complies with the law, and if that didn’t sit well then Congress should come up with new laws,” Jeff Gamet writes for The Mac Observer. “It looks like lawmakers may finally be taking his advice, and even President Barak Obama is looking for ways to get at the money Apple and other major corporations are holding outside of the country.”
Gamet writes, “When grilled by the subcommittee, Mr. Cook said, ‘The tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free movement of capital. It is in this spirit that we recommend a dramatic simplification of the corporate tax code. We strongly believe such comprehensive reform would be fair to all taxpayers, would keep America globally competitive and would promote U.S. economic growth.'”
“First, we have Senators Barbara Boxer (D-CA) and Rand Paul (R-KY) announcing they’re co-sponsoring a bill that would cut the taxes companies pay on earnings they bring into the country in a one-time deal from 35 percent down to 6.5 percent,” Gamet writes. “Next we have President Obama calling for a one-time 14 percent tax on offshore holdings, regardless of whether or not those funds are brought into the country. As part of the deal, companies would be able to bring that now-taxed money into the country without paying additional taxes. Future overseas earnings would face a 19 percent tax, again, whether or not the money is brought into the United States.”
Read more in the full article here.
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