Cupertino Barry Chang mayor: Apple ‘abuses us’ by not paying taxes

“The last time the mayor of Cupertino walked into Apple – the largest company in his small Californian town and, it so happens, the most valuable company in the world – he hoped to have a meeting to talk about traffic congestion,” Nellie Bowles reports for The Guardian. “Barry Chang barely made it into the lobby when Apple’s security team surrounded and escorted him off the property. ‘They said ‘you cannot come in, you’re not invited.’ After that I left and have not gone back,’ said an exasperated Chang, who’s been mayor since December 2015 and had approached the computing firm when he was serving on the city council three years ago.”

MacDailyNews Take: Next time make an appointment, Barry, you moron.

“Many in Cupertino, a 60,000-person town in the heart of Silicon Valley, are beginning to organize around their overburdened city. They claim the region is struggling with aging infrastructure and booming companies whose effective tax rate is often quite low,” Bowles reports. “Frustrated by traffic and noise, some in Cupertino are trying to put a stop to more development, which they argue brings more congestion on the roads, parking and train system. But Chang says limiting new development would damage the regional economy and that the real solution should be higher taxes on the wealthy and companies such as Apple.”

“He recently proposed that Apple – which is building a massive new campus its own employees nicknamed the Death Star, or more favorably, The Spaceship – should give $100m to improve city infrastructure,” Bowles reports. “To move on the proposal, Chang only needed to get a single vote ‘yes’ among the three other eligible council members. He failed to get that vote.”

MacDailyNews Take: Gee, wonder why he couldn’t pull even one vote? (smirk) Apple should just “give” $100 million? Puleeze.

“‘This American politics. This so-called democracy,’ Chang said, recalling the unanimous ‘no’ vote,” Bowles reports. “At a recent Cupertino city council meeting, some residents protested about a lack of funding for public projects, Chang said – even crumpling up meeting agendas and throwing them. ‘They ball up the paper and throw it, and they say ‘You’re making all the wrong decisions,” Chang said. ‘In the meantime Apple is not willing to pay a dime. They’re making profit, and they should share the responsibility for our city, but they won’t. They abuse us.'”

“The mayor of Cupertino plans to keep pushing Apple to contribute more to the town. Apple paid $9.2m in tax revenue to Cupertino in 2012to 2013, which was about 18% of the city’s general fund budget, according to an economic impact report,” Bowles reports. “Chang is now working on proposals for a business employer tax that would make companies with more than 100 workers pay $1,000 per employee.”

Read more in the full article here.

MacDailyNews Take: Hey, Cupertino, you “so-called democracy,” how ’bout you don’t elect a moron for mayor next time?

By the way: “The state’s political watchdog has penalized Mayor Barry Chang for failing to properly report financial contributions during his 2014 mayoral and Assembly campaigns,” Ramona Giwargis reported for The Mercury News in March.

“In his run for City Council, Chang did not disclose 160 contributions totaling $24,280 on campaign filings and failed to report occupation and employer information for 35 individual contributors, according to a proposed settlement the California Fair Political Practices Commission released Monday,” Giwargis reported. “Chang also failed to report occupation and employer information for roughly 231 contributors during his 2014 run for the 28th Assembly District.”

“Chang, who has served seven years on the City Council, recently proposed raising the city’s business tax to charge companies $1,000 per employee,” Giwargis reported. “The idea didn’t sit well with Cupertino’s largest corporate resident, Apple, which officially declined comment but apparently told Chang they’ll oppose his plan.”

Read more in the full article here.

57 Comments

  1. If Apple isn’t paying their fair share for the infrastructure, they should pay more. But all the talk of Apple’s offshore money has absolutely zero to do with this problem.

    1. That, along with others decrying Apple not paying enough, is among the most stupid things I have ever heard. WHY make it about Apple? They are following the laws that elected officials wrote.

      I have traveled around the world more than once. In some places you pay what is listed; in other places you bargain. If bargaining is not against the law on tax base, then it is not Apple that is the culprit. Down here in the Memphis TN area, I quite often see TV advertisement to companies about a multi-year cut rate tax base if a company will move to New York State. So, if Apple did this or another company did this, is it THEM that is the culprit or the legislatures and the laws?

      Apple is not the culprit on their earnings.

      1. 100% agree. Steve Jobs could have built the new campus anywhere. When he pitched it to Cupertino, he told them as much. Back then, they begged him to stay — the benefit to Cupertino is massive to have Apple. Now, they’re “abusing” you? Ungrateful mayor.

    2. Assuming California is like every other state in the Union, Cupertino extracted millions and millions of impact fees or system development charges when Apple started building their new campus. These impact fees are intended to pay for the increases in infrastructure capacity needed to support the new development.

      In other words, the impact fees pay for expanding water lines, sewage lines and treatment plants, highways, parks, schools, etc. So the Mayor demanding even more money from Apple is an example of the government’s insatiable appetite for more money.

      Furthermore, Cupertino is in the same boat as most suburban communities whose populations exploded 30-50 years ago. During the development boom in the 60s and 70s, developers built gobs of new infrastructure and handed it over to the cities. Now, 50 years later, it is wearing out and needs some serious maintenance or replacement. But local governments never bothered to put any money aside to maintain their infrastructure. Instead local government spent all their tax money on stuff that got them votes.

      Now people like Mayor Chang are begging for higher taxes and new road taxes and gifts from companies like Apple. Well Mr. Chang, if your city couldn’t properly manage its finances over the past 50 years, why should we give you more money that you can flush down the toilet. Maybe you should reprioritize how you spend your existing revenues.

      Just sayin’

      1. In my experience, the “impact fees” do not cover the added infrastructure needed to support the development. That, as usual gets passed on to the general taxpayer.

        1. Aren’t many of those taxpayers in Cupertino actually Apple employees? Taxes are paid in many different ways. Employed people pay taxes. They also spend money on local goods and services which produces sales taxes. The money that is spent on goods and services also helps to pay other salaries for workers in other companies and to purchase inventory, etc. That is called the multiplier effect. If Cupertino is having fiscal problems, then it’s citizens should start by hiring competent leaders. Then those competent leaders should enact prudent fiscal policies.

    3. “‘This American politics. This so-called democracy,’ Chang said, recalling the unanimous ‘no’ vote,”

      You keep using that word, democracy. I do not think it means what you think it means.

  2. Moron??? this mayor is a fsucking idiot who should be wroking in the sewer and sanitation department, where ‘doesn’t know shit from shinola’ really applies.

        1. TT, if you and Fwhatever would point out every time a Republican said or did something stupid, then I might be able to tolerate your politicrap. But you don’t. You act like the word “democrat” is an epithet and that all democrats are wrong all of the time. That misguided and elitist attitude is why you guys are saddled with Trump and will likely lose the Presidential race for the third time in a row. Republicans do not have a lock on intellect or reason. The idiot mayor could easily be a Republican…if so, we would have heard nothing from you. And that is sad.

    1. Take from the rich and give it to the poor until there are no more rich. Apple pays the property taxes that are levied against them and do not need to pay more. I hope the spaceship is real so it can fly to another state or country.

      1. But the opposite does not work, either. The rich cannot keep getting richer by squeezing the poor and middle class with profits that are enhanced by cutting salaries and benefits and running to foreign countries for low cost lab

            1. I don’t get your point. Republican appointments of women 1, Democrat appointments of women 3, including 2 by Obama.

              I think almost all of the KKK had mothers, so that’s not really their prime issue.

        1. Fwhatever, you love tossing out those historical tidbits. Perhaps you should research the history of the Republican Party. Lots of unpleasant stuff to mull over.

          What you should consider is that BOTH political parties are screwed up. But you only see what you want to see…misguided tunnel-vision.

          1. Melvin…The Republican Party abolished slavery, the Democrat Party created the Ku Klux Klan….further:
            • World War I – Woodrow Wilson, Democrat
            • World War II – Franklin Roosevelt, Democrat
            • Korean War – Harry Truman, Democrat.
            • The Vietnam War – Lyndon Johnson, Democrat.

            Democrats: The Party of Hate, War & Death.

  3. Well LOL, must be *really* humiliating being mayor of Cupertino and not allowed entrance to Apple (with appointment or not).

    Maybe Apple should have let him in and have some low-level executive wine and dine him (well at least get the moron some coffee)

    Nice going there Barry…

  4. Is Donny the Dump also a Democrat ? Perhaps this is a way out for the Republican Party so that they don’t have to make him their Presidential Nominee ?

    1. The Goals Of Donald J. Trump’s Tax Plan

      Too few Americans are working, too many jobs have been shipped overseas, and too many middle class families cannot make ends meet. This tax plan directly meets these challenges with four simple goals:

      1. Tax relief for middle class Americans: In order to achieve the American dream, let people keep more money in their pockets and increase after-tax wages.

      2. Simplify the tax code to reduce the headaches Americans face in preparing their taxes and let everyone keep more of their money.

      3. Grow the American economy by discouraging corporate inversions, adding a huge number of new jobs, and making America globally competitive again.

      4. Doesn’t add to our debt and deficit, which are already too large.

      The Trump Tax Plan Achieves These Goals

      1. If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – over 50% – from the income tax rolls. They get a new one page form to send the IRS saying, “I win,” those who would otherwise owe income taxes will save an average of nearly $1,000 each.

      2. All other Americans will get a simpler tax code with four brackets – 0%, 10%, 20% and 25% – instead of the current seven. This new tax code eliminates the marriage penalty and the Alternative Minimum Tax (AMT) while providing the lowest tax rate since before World War II.

      3. No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes. This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.

      4. No family will have to pay the death tax. You earned and saved that money for your family, not the government. You paid taxes on it when you earned it.

      The Trump Tax Plan Is Revenue Neutral

      The Trump tax cuts are fully paid for by:

      1. Reducing or eliminating most deductions and loopholes available to the very rich.

      2. A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate, followed by an end to the deferral of taxes on corporate income earned abroad.

      3. Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.

      More details of Donald J. Trump’s tax plan here.

      MAKE AMERICA GREAT AGAIN (after 8 long years of apology tours, kowtowing, spineless red lines, and feckless policy failures)

      1. You are more than 100% full of shit- a new mathematical accomplishment.

        Donald Trump and his “plan”. More strident sloganeering from another camp that is also full of shit.

      2. Trump doesn’t have a single credible plan to deal with a single issue facing this country either at home or abroad. His entire campaign is run on one or more parts of: (1) It’ll be great; (2) We’ll build a wall; (3) You’re ugly/stupid/a loser; (4) We’ll hire the best people; and (5) Trust me. The military laughs at his plans for ISIS; economists laugh at his economic proposals; he has no healthcare alternative; he’s considered the 6th biggest risk to the world economy; and his immigration plans are patently illegal, not to mention racist. He gets off on insulting people. He’s a schoolyard bully who missed too much school – he has the verbal skills of an 8th grader. He got rich because his daddy gave him the equivalent of an $8mm loan at a time when real estate was booming. Despite that his companies went bankrupt four times, and he boasts about getting rich off the backs of regular working people who lost out in his bankruptcies. He outsources jobs to China and then complains when other companies do the same. He has no concept of what the job of POTUS entails.

        1. All of Obama’s plans help illegals and Iranians while hurting working Americans and leaving them with another $10 trillion in debt. Obama is the worst effing president ever. He is a traitor.

          1. Shirley you jest? “All of Obama’s plans help illegals”?? He’s deported more illegals than any other administration ever. Try checking with non partisan economists over the US recovery from Bush’s recession. Here’s a couple of starters for you: http://www.usnews.com/opinion/economic-intelligence/2015/10/23/the-great-recession-would-have-been-much-worse-without-stimulus-tarp and http://www.vox.com/2015/10/20/9571349/blinder-zandi-stimulus-bailout As for the deficit? Lower now than in Bush’s last year. http://www.msnbc.com/rachel-maddow-show/deficit-shrinks-1-trillion-obama-era
            Facts are facts. He reduced unemployment to 5%. Doubled the stock market. GDP was -0.3% in Bush’s last year and +3.7% last year. Halved the amount of oil imported. Slashed the rate of teen pregnancy. Cut to one third the number of centrifuges Iran has.
            And all against the most obstructive, do-nothing congress in history. A congress that tried to force severe austerity on this country. Just look at the Euro countries who tried that – still mired in recession and only now belatedly turning to stimulus. Against the likes of McConnell, who commited treason by saying his only goal from 2010 to 2012 was to make sure Obama was a one term president. Putting party politics ahead of reducing unemployment or improving the economy. Or fighting terrorism. A congress that has wasted countless millions of dollars trying to overturn Obamacare without putting forward any credible alternative. Obamacare that has made insurance affordable for 40 million more Americans were uninsured before. You probably don’t care about that, but you would if you went bankrupt because you or your wife or your kid got really sick and even if you had insurance, the insurer dropped you like a stone.
            Idiots like you deserve Trump. Lucky for you the rest of us won’t let you have him.

      3. A fine tax platform indeed, until you remember his disparaging words on NAFTA and TPP. Looks like Smoot-Hawley all over again. Working class Americans that think Trump will save them and their jobs will be in for a very rude awakening when the world economy implodes as trade barriers go up.

  5. You Drumpf supporters are a joke. Get your facts straight,
    Trump Airlines – failed
    Trump Casinos – failed
    Trump Marriages – failed
    Trump Mortage – failed
    Trump University – failed
    Trump Vodka – Failed
    Trump Steaks – Failed
    Trump Bankrupted – Four Times!
    Trump outsources labor for products and services
    Trump, endorsed by Virginia’s KKK leader saying “Best for the Job” and that Klan members love him. “A lot of what he believes, we believe in.” Straight up, you guys, racist much?

    This is the kind of S*it that will not make America Great again. It only makes us look as dumb and ignorant as we truly have become.
    Etc… etc… etc…

    All these things said, I don’t really think this article was posted with the intent to start a political piss match on a Tech page! There are plenty of other forums for that already.

    Enjoy your days, get out and get some fresh air.

    1. You do realize that most business people do fail from time to time? Good leaders learn from these failures. One great example comes to mind: Steve Jobs.

      1. “From time to time”???? WTF do you think that list is? He was born with a golden spoon in his mouth and still managed that long list of failures. Bankruptcy for the USA isn’t an option.
        He isn’t a leader, he’s a bully, with 8th grade language skills. And he’s a pathological liar, even by politicians’ standards. He lied to Atlantic City to be allowed to buy the Taj Mahal, saying he would never use junk bonds to finance it. What did he do? He used junk bonds and in less than a year it was bankrupt. He lies to get whatever he wants. He lied about the info his investigators had regarding Obama’s birth certificate; he’s lying now saying Clinton started that issue; his statements about Cruz’s father and Oswald earned a “pants on fire” rating; as did his statements about Clinton not doing well with women, the supposed funding of illegal immigrants; his denigration of Michelle Fields, his wins in Florida, his knowledge of David Duke, his position on Libya, multiple statements about the unemployment numbers, his fake ads about illegals swarming over borders, his statement that Obama wanted to take in 250k immigrants from Syria, his statements on crime, his statements about people cheering the collapse of the WTC, his statements about the Feds only sending refugees to republican states, his understanding of the TPP, his statement that Sanders would tax people at 90%, his statements that the MX government sends bad people to the US, the number of illegals in this country, etc., etc., etc.
        He has more pants of fire ratings than any other politician. He thinks that repeating a lie often and loud makes it true. He actually makes Palin look both (relatively) intelligent and truthful.

  6. Citizens of the free and civilized world isn’t it great to find out that Apple is doing everything it can to keep as much money as possible in the free and civilized world.

    It’s so nice to see them take a break from all the war mongering but remember their election unfortunately does come to an end sometime this year and that’s probably when it will start up again, although there are rumors that they might build a wall around their country. I know a lot of you would love to pay for that if it meant keeping them there. Just imagine one of them wanting to visit the free and civilized world and getting the same words told to Barry Chang ‘you cannot come in, you’re not invited’.

    That would be so peaceful. Well one can hope.

  7. Wonder how much $$ those Apple employees contribute to local taxes per year…assuming they eat lunch, buy gas, etc. love how people talk about corporate taxes without mentioning that those employers bring in taxes for the city with each person they hire..payroll taxes, properly taxes, the morass of sales taxes on every single thing they buy..

  8. Fool mayor. Wait until the real estate taxes alone roll in on Campus 2. He should focus on the criminal unintended (or where they?) consequences of Proposition 13, which rules when RE tax assessments can be changed etc. The resulr has been a shoft of the RE tax burden progressively to indiidual vs corportate owners. Why? Because when corporations are purchased the RE owned by said corp. is not sold or bought. So the assessment remains unchanged even though in effect the property has reasonably speaking changed hands. The people get screwed, the cities get screwed. The corporate owners win once again. Apple will be pouring revenue into Cupertino directly and indirectly. Anyone who doubts it should leave. Mayer Chan – get job you can handle.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.