Interesting

[dadagoboi]

I've never been an Apple fan, but I can't fault them for using available legal tax strategies. Apple's problem is the same as Microsoft used to have: they're under the delusion that if they mind their own business, that Congress and regulators will leave them alone. The truth is that they have a target on their back. Sadly,they need to spend money and buy legislators. That's the way it is in today's world.

As for market share in smart phones, their dominance was bound to lessen in time. Bringing Steve Jobs back from the dead wouldn't change that.

US tax law needs to change, see the current 'Economist' (not exactly a liberal rag) pp.65-66 if you need to know why.  Example:

USA law says a corporation's residency is based on where a firm is incorporated, Irish law says it is where it is managed or otherwise controlled.  This lets Apple claim it is a resident of nowhere for tax purposes.

Let's see how many lobbyists and lawmakers Apple buys with some of the $30 billion profit made between 2009-2012 by Apple Operations International, incorporated and based in Cork, Ireland, which in turn is parent to the group's international sales arm.  The company is managed from the US (board meetings are held here). No tax was paid on that $30,000,000,000 anywhere.

Indeed they have a target on their back and rightfully so.

[Lightyear]

US tax law needs to change..............

Indeed they have a target on their back and rightfully so.

Agreed.

As I suspected we're #1 and Ireland is next to last with Swiss having a rate of only 8.5%.  Here's the first article I found to verify:

http://www.aei.org/article/economics/fiscal-policy/taxes/report-card-on-effective-corporate-tax-rates/

I'm all for having a rate at least as low as Mexico for cripes sake providing that we have a sweeping change that eliminates the the loop holes while fostering an environment that business can survive in.

[dadagoboi]

Agreed.

As I suspected we're #1 and Ireland is next to last with Swiss having a rate of only 8.5%.  Here's the first article I found to verify:

http://www.aei.org/article/economics/fiscal-policy/taxes/report-card-on-effective-corporate-tax-rates/

I'm all for having a rate at least as low as Mexico for cripes sake providing that we have a sweeping change that eliminates the the loop holes while fostering an environment that business can survive in.

The big corporations are perfectly happy to have the US tax rates where they are.  They can complain about how high the nominal rates are while never paying anywhere near them.  It's cheaper to pay lobbyists, tax lawyers and legislators to make and keep the loopholes than it is to pay a reasonable rate.

[Pilgrim]

Saw that about Motorola - good for them!

I personally don't have heartburn about Apple sheltering income offshore.  There are rules, and everyone can play by them.  Some work for you, some work against you.  That's true for the Feds and for businesses. 

Same here at the university - we have lots of rules, and when students find ways to use them to their advantage, I applaud them.  We spend enough time being a pain in the butt to students that it's nice to see that some are smart enough to game the system and take advantage. 

[dadagoboi]

Saw that about Motorola - good for them!

I personally don't have heartburn about Apple sheltering income offshore.  There are rules, and everyone can play by them.  Some work for you, some work against you.  That's true for the Feds and for businesses. 

Same here at the university - we have lots of rules, and when students find ways to use them to their advantage, I applaud them.  We spend enough time being a pain in the butt to students that it's nice to see that some are smart enough to game the system and take advantage. 

I doubt you let your students write the rules. This is essentially what the corporations do through their lawyers and lobbyists and if necessary outright bribery.

To me it's no different than what corporations have done to intellectual property laws, changing the rules to their benefit.  Then they expect the rest of the world to enforce them.

[Lightyear]

I'm a big free market/capitalist, limited government guy myself.  That said, our entire tax structure is so utterly f'd up I think it is beyond repair.  Time for a redo. 

[Dave W]

I doubt you let your students write the rules. This is essentially what the corporations do through their lawyers and lobbyists and if necessary outright bribery.

To me it's no different than what corporations have done to intellectual property laws, changing the rules to their benefit.  Then they expect the rest of the world to enforce them.

The corruption of the "intellectual property" industry is even a bigger threat than ordinary crony capitalism. It's a huge threat to free speech.

[Pilgrim]

I doubt you let your students write the rules. This is essentially what the corporations do through their lawyers and lobbyists and if necessary outright bribery.

I think you're right, but that doesn't change the fact that the laws are what they are.  I also agree that they should be changed, but they haven't yet...and those who learn how to use the rules can benefit.

There are plenty of ways in which special interests dictate laws (firearms, tax policy and lending interest being examples) but that's part of the long-term process of running a country set up like the US.  I don't have to like it, but I recognize it.  

[Rob]

I doubt you let your students write the rules. This is essentially what the corporations do through their lawyers and lobbyists and if necessary outright bribery.

To me it's no different than what corporations have done to intellectual property laws, changing the rules to their benefit.  Then they expect the rest of the world to enforce them.

[Dave W]