“Apple CEO Tim Cook’s fundraising breakfast for House Speaker Paul Ryan on Tuesday was the talk of Silicon Valley,” Naomi LaChance writes for The Intercept. “Cook, after all, has been outspoken in his opposition to Republican-backed anti-LGBT measures and has refused to provide any support for the Republican convention on account of Donald Trump’s more virulent positions.”
LaChance writes, “But the bottom line is the bottom line.”
“Apple has billions of dollars stored in subsidiaries in offshore tax havens — about $181 billion, in fact — more than any other U.S. corporation,” LaChance writes. “And he needs Republican help to be allowed to bring it back to the U.S. without paying the statutory 35 percent corporate tax rate.”
Read more in the full article here.
MacDailyNews Take: Obviously, U.S. corporate taxes are too high.
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
SEE ALSO:
Apple’s politics may be hurting its brand – June 29, 2016
Nancy Pelosi blasts Apple CEO Tim Cook for hosting GOP fundraiser – June 28, 2016
Apple’s detestable moral hypocrisy – June 21, 2016
Apple CEO Cook to host Paul Ryan fundraiser as company tries to strengthen relationships with key Republicans – June 20, 2016
Cramer: Apple’s Tim Cook is ‘patriotic’ on taxes – December 21, 2015
Apple CEO Tim Cook is absolutely right – and wrong – on U.S. corporate tax policy – December 20, 2015
Apple CEO calls corporate tax rap ‘total political crap’ – December 18, 2015
Apple avoids $59.2 billion U.S. tax bill – October 7, 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
He needs to throw some money at Gary Johnson for President, then.
Gary Johnson can’t possibly win, so why throw money down the drain?
Are you saying that Apple would fail the true test of political clout?
I’m not sure I understand the question or maybe I disagree with the premise the question is based on. No amount of money could buy Gary Johnson this election.
Money is needed to win a presidential election, but no amount of money will buy it.
The debates haven’t even started..today Quinnipiac has them in a dead heat..
Trump is gonna eat The Pantsuit Succubus for Brexit.
Apple is very smart playing both sides of the fence. Unlike Goggle who sends Schmidt out to kiss the ass of all the D leaders, Apple supports each party where their issues converge.
You may disagree with a party/candidate on certain issues like LGBT, but in areas where you agree you should work together. It is just good strategy.
Notice how she condescends to him “Poor Tim” when he declines to embrace her one-party system.
Wrong way Tim strikes again and again.
Tim should leave Apple and run for office.
Oh, I think he would miss the perks.
Frankly, I don’t think Cook will be CEO much longer.
Cook is supporting a Climate Change denier…Sorry bruv. You’re dead to me.
Frankly, I don’t think it should play any politics. I understand the need. I also think it is totally un-American despite taxes being too high in America. By harboring cash in another country and paying taxes in said country you are essentially giving the supporting the social programs in THAT country such as healthcare, education, and all the other social programs it has. But you won’t support America’s social programs? Sounds un-American to me. I guess profits are more important…which by definition is greed and I don’t care if it is totally legal. It is still un-American.
The following top corporations have made tremendous profits and get TAX RETURNS by the millions or billions are:
Exxon-Mobil
Bank of America
General Electric
Chevron
Valero Energy
Goldman Sachs
Citicorp
Conoco-Philips
Let me put this in a better perspective for you regarding “illions”. Here it goes:
How long ago was 1 million seconds? 12 days ago!
How long was 1 billion seconds ago? 32 years ago!!
How long was a trillion seconds ago? 32,000 years ago!!!
You can never say “millionaires” and “billionaires” in the same breath and be talking about the same thing. These are immense jumps between each word. We went from 12 days to 32 years. Let that sink in.
Griping about paying to much taxes when your profits or returns are in the billions…gimme an effing break! American taxes would be a drop in the bucket and you would be doing your citizens that work in this country a great service regardless if you are pro Bernie or pro whomever. Act like an American Company!
*giving and supporting…
*Griping about paying too much taxes…
(Wish there was a timed edit capability on this thing.)
Apple pays taxes in USA for all USA sales.
Apple is the largest USA taxpayer. Apple’s USA tax rate is about 30%.
the overseas cash was generated overseas where Apple has to pay LOCAL tax. When Apple brings the tax back it is taxed AGAIN, i.e twice. Apple just wants the second tax lower than 35%.
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MAYBE PEOPLE should Complain more about how politicians WASTE tax money rather than complaining how corporations don’t pay enough. If politicians all round the world are more honest and better stewards there would be more than enough tax money. If they didn’t cheat and waste we would get better services for half the tax .
here is my post on how EU officials waste money when the EU wanted to investigate Apple on Tax:
Telegraph:
” Eu Commissioners travelled in limousines, stayed in five star hotels and splashed out on lavish gifts including Tiffany jewellery as their member states faced savage budget cuts and rising EU taxes.
An investigation by the Bureau of Investigative Journalism into spending by the EU executive has shown that more than €7.5m (£6.6m) was spent on private jet travel for commissioners between 2006 and 2010.
Baroness Ashton, the British EU foreign minister, came under fire when it was reported that she had demanded her own private jet less than 100 days into her new role in March last year.
Tens of thousands more was spent accommodating commissioners at luxury five star resorts in exotic locations such as Papua New Guinea, Ghana and Vietnam, the spending figures show.
The Commission also ran up a bill of more than €300,000 (£263,511) for lavish cocktail parties, including an event in Amsterdam costing €75,000, which was described as “a night filled with wonder like no other
“It spent thousands hiring top orchestras to play at the exclusive parties, while guest speakers at its events were presented with expensive gifts including cufflinks, fountain pens and Tiffany jewellery.
The Daily Telegraph show that the Commission’s President, Jose Manuel Barroso, ran up a bill of €28,000 (£24,500) during a four-night stay at the New York Peninsula Hotel in September 2009.
Mr Barroso stayed at the five-star hotel, where suites cost €780 a night, ”
ETC.
YOU can Easily find equal misspending by USA and officials or other countries. the above are a drop in the bucket, politicians waste more by giving ” bridge to nowhere” “$300 screwdrivers” contracts to their friends and cousins. $30 billion at least of the $50 billion Moscow Olympics lined politicians friend’s pockets from overcharges and corruption.
Highly unlikely that Apple pays as much as 30% in taxes. The average for all companies is estimated to be something like 23%, and the average for computer makers is thought to be about 10%.
And, of course, most of the large companies pay no Federal Income tax in a year.
New York Times:
“The way I look at this is that Apple pays 30.5 percent of its profits in taxes in the United States,” Apple’s chief executive, Timothy D. Cook, said at the (Senate) hearing. The statutory rate for companies is 35 percent, and in theory the government taxes corporations on their worldwide income at that rate. Mr. Cook explained that Apple paid less on a global basis because its profits generated abroad were taxed at a lower rate than in the United States.”
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all I can do is base my posts on facts, maybe you are implying tim cook is lying to to the Senate, or that the senators are so clueless they if they are lied to they don’t immediately object….
Apple is not the largest USA taxpayer. ExxonMobil and Chevron pay more in US taxes.
forbes
april 2016
“The profit leader was Apple, which forked over nearly $13 billion in taxes on $68 billion in gross profits, according to its 2015 cash flow statement. That’s up from $10 billion in cash taxes paid in 2014. Warren Buffett’s Berkshire paid about $4.5 billion in taxes, while ExxonMobil XOM +1.70% paid about $7.3 billion, down from $18 billion in 2014 (when oil prices were higher).”
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Don’t mess with Davewrite. He knows his stuff.
BTW, Dave, who do you recommend for Prez?
“The following top corporations have made tremendous profits and get TAX RETURNS by the millions or billions are”
Tax returns are completely irrelevant at best, and at worst reflect an over-payment by the tax payer for the year at an opportunity cost to the tax payer.
What matters is how much in taxes the tax payer paid on their income/profit.
“I guess profits are more important…which by definition is greed and I don’t care if it is totally legal. It is still un-American.”
Excuse me there is nothing more American than greed, America was built on capitalism and capitalism is GREED, by law they have to make as much money for shareholders as is possible it is their fiduciary responsibility. It’s bad if left unchecked but it is the system the U.S. was built on. Also the U.S. was formed when the majority did not like the Tax they were paying to England and so they revolted, so there is nothing more american than avoiding Tax.
@Michael, Thank you for pointing out something I’ve been saying for a long time. Hundreds, Thousands, Millions all sound very different despite being relatively close numbers wise, but Billions is a whole different animal.
People complaining about Cook getting involved in politics should do some research and look at how much of our beloved Jobs money was contributed to candidates and causes.
I don’t agree with politically with everywhere Cook has made contributions, but I respect his right to do so, and appreciate that it provides a mechanism for candidates and causes to be heard.
so tell us Kev, “how much of our beloved Jobs money was contributed to candidates and causes”?
Apply is not politicaly biased… They consider themselves a bipartisan company.
http://www.patentlyapple.com/patently-apple/2016/06/democrats-are-landing-a-few-big-political-hits-against-apple-and-their-ceo-tim-cook-of-late.html#more