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Irish Government May Close Apple's Biggest Tax Loophole
DavidGilbert99 writes "Ireland and its tax system came under some extreme scrutiny earlier this year when it was revealed that Apple funneled billions of dollars of revenue though three subsidiaries based in the country. Thanks to a loophole, none of these subsidiaries were tax-resident in Ireland, meaning they didn't even have to pay Ireland's relatively low 12.5% corporation tax rate. Worryingly for Apple, Ireland's finance minister may now shut this loophole. A measure within a new budget bill (PDF) would disallow Apple's status as a 'stateless' corporate entity for tax purposes. Apple will still be able to select a country like Bermuda as its tax residence, but it's a step in the right direction."
I will not speak out about this practice that hurts me indirectly because I am deluded into thinking that any day now I'll be rich enough to make use of it myself.
- Joe Sixpack Americano
If you start charing us tax, you'll lose even the tax we're paying you now, because we'll move somewhere else. Err... right, we're not paying any. Oh, oh, I know! Job, if you charge us tax we'll have to fire the two people that earn minimum wage for us in your country! You anti-capitalistic pigs are destroying jobs!
Captcha: avarice - I can haz source code and database of this captcha? I really likez.
I don't understand why countries like Ireland or Bermuda or wherever don't all just charge a small tax of some kind (like say 5%) that keeps the companies coming there, but gets them tons of money. What does Bermuda get out of having Apple "based" in Bermuda if they don't get any tax revenue? They get no additional jobs or property taxes (except maybe a mailbox rental).
It's about time the multinational thieves got lynched and paid their fair share.
I do not fail; I succeed at finding out what does not work.
The fact is corporations need to be taxed because otherwise you would just shift all your assets into a corporation with you as the sole proprietor and pay no tax at all. In fact this is more or less what those CEOs you hear "only take minimum wage" do. They get their income from either bonuses or stocks which are taxed differently. Were they taxed more heavily this would not happen. Meanwhile us chumps can't enter this little shell game. BTW this is one of the arguments for the so called flat tax systems.
A loophole is unintended.
If anyone thinks that the tax code and the ability to do exactly what Apple (and others) are doing isn't completely intention is an idiot.
This is bullshit. The link between huge corporations and jobs has been use to justify all types of abuses and it's time to move on. The Internet has killed that link. We are shoveling more an order of magnitude more money (at least) towards corporate welfare than we do towards "real" welfare based on that theory. The small business is the only that is going to save he economy of the U.S. because those are the only jobs that are based in communities. The race to the bottom has made many multi-national employees no better off than slave labor. It's time to STOP shoveling money towards he biggest multinationals and taking care of the people that are doing the REAL capitalism, and that's small business owners.
I have no problem with corporations taking advantage of whatever the law allows them to do but there should be consequences. If the government is going to consider a corporation to be like a person with 1st amendment rights and money to be speech, well they are declaring their corporate personhood to not be a citizen, only a resident. Residents don't get to vote, only citizens. If you don't have a vote then you shouldn't have any right to contribute anything to the election process. If you want a voice in the government then pay taxes.
I think we ought to get rid of corporate tax to end this pointless charade. Tax dividends and capital gains as income and move on with life. It's not all that much revenue, and could easily be made up. As a bonus, if other countries don't follow suit, companies might shift their headquarters to the US.
I do so very much enjoy the primitive thinking that if we just increase the amount of sacrifices and offerings we give to the volcano gods, they'll cast down their blessings on us and save us from our increasing lack of sacrifices and offerings to give to the volcano gods.
I own Apple shares. So in a small way, I already benefit from this practice.
Unless you own millions of dollars worth of shares, I assure you that the net benefit between your gains on that stock and what you personally have to chip into the US coffers because of companies like this is a negative for you.
If companies like this repatriated the profits that they are stashing overseas, much of our government budget problems would be solved. As it is, you and I are stuck with the bill - contrary to the propaganda on Fox News and Talk Radio.
Yes, the US tax system is THE worst in the World and needs to be reformed (like eliminating the loopholes that allow the very rich to pull shit like this) so that companies don't have to nor feel the need to do this shit. And we need to bring back Eisenhower (Republican) era Income Tax rates. Remember, those were the best times for the US economy so saying that taxes kill prosperity is not true - if anything, it increases it because it stops this obscene disparity of wealth.
Folks, we are currently headed to a Third World economy: very rich and us peons who have no hope to get anywhere. That wasn't true back when the top income tax bracket was over 90%.