5/21/2013 5:51 PM ET|
Apple's overseas hoard unfair to taxpayers
The tech giant's cash-management strategy -- and it's hardly alone in this approach -- benefits the company, not hardworking Americans.
In fact, as Citizens for Tax Justice noted, that money is out of reach of the taxing authorities of any government. As leader of the iPhone and iPad maker, Cook insists his company hasn't done anything wrong. Sadly for American taxpayers, he's right.
As the nonprofit tax organization notes on its website: "Under current law, corporations can indefinitely defer paying U.S. income taxes on their offshore profits."
Companies disclose in their financial reports how much in taxes they would have paid if there were no deferral. In Apple's case, it's $35 billion. The company notes that it does pay plenty of taxes -- about $6 billion in 2012. Still, by shifting its cash around the globe, Apple kept at least $74 billion out of the IRS' reach between 2009 and 2012, according to The New York Times.
Speaking before the U.S. Senate, Cook argued that Apple doesn't depend on "tax gimmicks."
"We pay all the taxes we owe -- every single dollar," the Los Angeles Times quoted him as saying. "We not only comply with the laws, but we comply with the spirit of the laws."
Other companies, such as Google (GOOG) and General Electric (GE), have made similar arguments. These giant corporations use strategies such as "Double Irish" and "Dutch Sandwich" that sound like they could be titles for 1940s pulp detective novels.
Cook and other business executives have long argued that the U.S. tax code is too cumbersome and that business tax rates are too high. Add another complaint to that list: unfair to hardworking, taxpaying Americans.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... More
More Market News
The idea of US crude being a shelter from turmoil abroad may not be as far fetched as it seems.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'