Nice to know our tech friends aren't paying taxes

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Since Mayor Ed Lee has decided that tech companies are the future of San Francisco, it's nice to note that these outfits are often no better than the cheating robber barons of old -- or the modern Leona Helmsleys. The Campaign for America's Future notes that Apple dodged a $9.2 billion tax bill that would have been enough to cover most of the sequester cuts this spring. Notes Isaiah Poole:

Apple makes great products, but the obscenity of its use of the tax code to avoid paying its fair share for the functions of government that make its success possible is only exceeded by the tax code itself and the nexus of ideology and corporate greed that created it.

Only the little people pay taxes.

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According to Bloomberg and Moody's Vice President Gerald Granovsky:

"“From a pure corporate-finance theory perspective, this was a no-brainer,” Granovsky said.

If the funds had come from Apple’s offshore cash pile of about $100 billion, the Cupertino, California-based iPhone maker would have had to pay a 35 percent tax to repatriate the money, Granovsky said. That means Apple avoided about $9.2 billion in taxes. And since interest payments are tax-deductible, that’s another $100 million a year, Granovsky said.

In fiscal year 2012, Apple paid $6 billion in federal corporate income taxes, which is 1 out of every 40 dollars in corporate income taxes collected by the U.S. government, said Steve Dowling, a company spokesman."

So in other words they financed their buy-back program as efficiently as possible. All 100% perfectly legal according to the tax code.

Hey Progressives:

Please raise your hand if you don't deduct you mortgage.

IRA contribution anyone?

Why...I bet that some of you even take the nefarious "standard deduction".

Little people don't pay $6 billion a year in Federal taxes; they just throw pebbles at those who do.

Posted by Troll on May. 08, 2013 @ 12:58 pm

He just made baseless claims. And the analogy with Helmsley is dishonest because what Leona did was illegal and she served time. Apple's strategy is perfectly legal.

If Tim doesn't like the law, he should try and get it changed, and not blame people and entities who are 100% fully compliant with the law.

Posted by Guest on May. 08, 2013 @ 1:21 pm

Yes....if they had to pay $9 billion in taxes to do the buy back then they just wouldn't have done it.

And if they had paid $9 billion in taxes that they could have legally avoided then they would have violated their fiduciary responsibilities to the shareholders, including pension funds.

I really liked the part about "it's nice to note that these outfits are often no better than the cheating robber barons of old".

Because they didn't pay $9 billion that they aren't legally obligated to pay.

Posted by Troll on May. 08, 2013 @ 1:57 pm

shit fit in the early 90's.

Anyone who was here then saw weekly screeds in the Guardian until Pete Wilson rescinded his new taxes on the Guardian.

Posted by So comical on May. 08, 2013 @ 10:57 pm

Apple has already paid taxes on its offshore cash.

Posted by Guest on May. 09, 2013 @ 5:31 am
Posted by Guest on May. 09, 2013 @ 5:43 am

Correct.

Pay taxes in countries where cash is earned.

Pay another 35% to bring it to the US.

Pay another 15-40% to give it to its owners (shareholders).

Posted by Guest on May. 09, 2013 @ 7:55 am

Only Japan has higher rates than the US. even France has a lower rate.

Until that changes, US corporate tax will stay offshore, and who can blame them? (Apart from Tim of course).

Posted by Guest on May. 09, 2013 @ 9:55 am

It's fun to see Tim talk about things he doesn't understand, especially when he's so incurious about them. Apple pays less in taxes via perfectly legal means = less free stuff for Tim. End of story.

Posted by Chromefields on May. 09, 2013 @ 9:36 am

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