Apple 'rotten' with taxes
After Tuesday’s Senate hearings, it looks like Apple may be rotten at the core.
Apple CEO Tim Cook denied allegations that the company is avoiding billions of dollars in taxes by rearranging profits to foreign affiliates. However, following the law and following the law using loopholes are two different concepts.
Now whether the allegations lawmakers have made, accusing Apple of avoiding taxes on at least $74 billion in profits between 2009 and 2012 are true remains uncertain, although Cook didn’t openly deny some of those allegations. But setting up “ghost” subsidiaries in Ireland, as Sen. Carl Levin, D-Mich., described it, seems a bit out of touch with a company so fervently defending its American image.
“We pay all the taxes we owe, every single dollar. We don’t depend on tax gimmicks,” Cook said in the hearing, arguing the outdated tax code, and not the company’s practices, were to blame.
Well, essentially sheltering your money overseas from U.S. taxes is a gimmick, and the oldest trick in the book at that. If you earn a majority of your revenue in this country, 37.9 percent in the Americas, and are selling yourself as a loyal American brand, then you should be paying the taxes. It’s pretty simple: stop the gimmicks, stop the greed, stop taking advantage of the system.
While there’s always room for reform in taxes, claiming the system is so outdated is not a viable excuse for shifting your profits overseas to avoid the 35 percent corporate tax rate in the U.S. One could argue getting arrested for stealing an iPod out of someone’s purse is outdated, but that doesn’t absolve one of that action.
But I guess when you’re a multibillion dollar corporation, the rules are bit different.