“Pfizer’s corporate U.S. exit should be a wake-up call to the American public, but I doubt that it will be,” Ray Ernst writes in a letter published in the Wall Street Journal. “Perhaps when iconic Apple decides to leave we will get the message. After all, Pfizer ‘only’ has $144 billion retained overseas (and earned overseas, for those thinking it is from the U.S.); Apple has $190 billion overseas.”
“Since 2005, corporate earnings retained overseas have increased from $0.5 trillion to $2.1 trillion (about 300%!)” Ernst writes. “National politicians lead us to believe that the Earth revolves around them and Washington; yet they do nothing.”
“Intel Corp. testified to Congress on Nov. 19 about how it is testing its drone technologies overseas and may move its drone R&D overseas,” Ernst writes. “Americans should read the congressional testimony that shows the arrogance of Washington and the high-flying bureaucrats at the FAA. These are all highly skilled technology and manufacturing jobs; you know, those middle-class jobs paying $60,000-$130,000 that we used to have.”
Read more in the full article here.
MacDailyNews Take: Newsflash: Corporations don’t pay taxes, you do.
“Corporate taxes” are simply passed along to the consumer. It’s how the government sneakily double-taxes its citizens. You’re taxed on your income and then again on what’s left via higher prices across the board.
Apple should rattle their rather imposing saber. The threat of cold hard cash disappearing is about the only thing that prompts some people into action in Washington DC.
Under the current U.S. corporate tax system, it would be very expensive to repatriate that cash. Unfortunately, the tax code has not kept up with the digital age. The tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free flow of capital… Apple has always believed in the simple, not the complex. You can see it in our products and the way we conduct ourselves. It is in this spirit that we recommend a dramatic simplification of the corporate tax code. This reform should be revenue neutral, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the U.S. We make this recommendation with our eyes wide open, realizing this would likely increase Apple’s U.S. taxes. But we strongly believe such comprehensive reform would be fair to all taxpayers, would keep America globally competitive and would promote U.S. economic growth. – Apple CEO Tim Cook, May 21, 2013
Think Ireland’s corporate tax is unfair? Wave goodbye to Apple and thousands of jobs if it’s changed – November 14, 2015
U.S. companies now have $2.1 trillion overseas to avoid corporate taxes – March 4, 2015
Intel CFO: Obama repatriation tax proposal ‘lipstick on a pig’ – February 4, 2015
U.S. Congress, Obama take Apple CEO Cook’s advice, eye corporate tax changes – February 3, 2015
Obama targets foreign profits with tax proposal, Republicans skeptical – February 2, 2015
Senator Rand Paul finds Democratic partner for tax repatriation holiday – January 30, 2015
Businesses hopeful Republican control of U.S. Congress will break tax-reform gridlock – November 5, 2014
Not in Taxes anymore: On site at Apple’s famous Irish ‘headquarters’ – November 2, 2013
Regan: U.S. tax code spurs loveless foreign corporate ‘marriages’ – May 13, 2014
Ireland to close Apple’s tax loophole, but leave bigger one open – October 15, 2013
G20 think tank OECD proposes blueprint for global crackdown on tax avoidance – July 19, 2013
Thomas Sowell on Apple, corporate taxes, and ‘the road to serfdom’ – May 28, 2013
Taxing Apple just taxes you – May 24, 2013
Don’t tax Apple, tax its shareholders – May 24, 2013
If Apple paid more tax, we might pay less or something – May 22, 2013
Apple CEO Tim Cook pounds another nail into the Keynesian coffin – May 22, 2013
Apple CEO Cook makes no apology for company’s tax strategy – May 22, 2013