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Cupertino's Mayor: Apple 'Abuses Us' By Not Paying Taxes (theguardian.com)
An anonymous reader shares a report on The Guardian: Apple pays a 2.3% effective tax rate on its $181bn in cash held offshore, according to Citizens for Tax Justice, a not-for-profit research group focusing on tax policy. Citizens for Tax Justice estimates that Apple would owe $59.2bn in U.S. taxes if the money weren't funneled into offshore shell accounts. Criticism over the company's offshore tax schemes has become more pointed in recent months, both locally in Cupertino and from Apple's own staff. At a recent Cupertino city council meeting, some residents protested about a lack of funding for public projects, Barry Chang, Mayor of Cupertino said: "They ball up the paper and throw it, and they say 'You're making all the wrong decisions'," Chang said. "In the meantime, Apple is not willing to pay a dime. They're making profit, and they should share the responsibility for our city, but they won't. They abuse us."
All of that money is money earned overseas. So it's not "funneled" anywhere, it's just not brought back
Why? Because the government makes it absurdly expensive to bring money back to the U.S. - money Apple has already been taxed on overseas.
Apple has said repeatedly it would be happy to bring that cash back if it had a much more reasonable percentage to pay in taxes on it. So if the government really wants it, it can have that money any time simply by making the tax rates for corporations something more in line with what the rest of the world has.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Agreed, except this isn't how US corporate income taxes work. The reason Apple has all that cash parked overseas is that the US wants to tax Apple profits on products sold everywhere, not just in the US.
Even if we made the change to the US tax system that you suggest (move to a where earned from a HQ model), corporate taxation would still be a complex topic. If Apple sells an iPhone in Germany, it should pay taxes in Germany on that profit. But how much profit was really generated there? What's the "right" cost of that iPhone to Apple's German subsidiary?
Dear Mayor Chang,
What part of "building permit" and "property taxes" don't you understand? If you folks let Apple build a giant doughnut in Cupertino without the city collecting adequate local taxes on it, you can hardly blame us, can you...?
your friend,
Tim Cook
how can Cupertino be broke
No matter how much money any government receives in taxes, they will always spend more and borrow whatever they can get away with.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
City Government: Please come to our city, Big Business! We'll give you incredible tax breaks! We'll practically pay you just for existing here!
Big Business: I don't know. That "practically" sounds kind of hesitant. Besides, there's a bunch of other towns down the road that might offer us a better deal.
City Government: Fine, we will literally pay to just to keep your corporate headquarters here. We'll give you the land for a pittance. We'll fast-track the permitting process. We'll give you a zoning variance. None of the city ordinances will apply to you. And no direct taxes on you, we promise. We'll make it up by taxing our citizens, who will probably mostly be working for you from here on out.
Citizen: Hold on. I was busy with my life just then, but it sounds like you're going to let some huge company move in and take over, and use my taxes to build a new thirty-story corporate headquarters in my front yard, and then crank up my taxes even more to make up for the taxes you spent on them?
City Government: Yes, but you'll be able to afford it, because you can get a good job at the company!
Citizen: I like my job now. I don't want to fucking work for those fuckers. I don't want a bunch of douches coming in and putting in 17 Starbuckses on the same street and making us all have to sort our garbage into eight separate bins and raising the rents to ridiculous levels so we have to all move out.
City Government: We hear your concerns. But we really want more tax money to play with. So, fuck you. Leave town if you want. Don't let the screen door hit you on the way out.
[Decades later.]
City Government: Hey, Big Business, uh, while our tax revenue has been growing continuously for decades now, it turns out that our expenditures have been growing even faster, because it turns out that a lot of money is not infinite money. We need infinite money. All our planning is based on infinite money. You need to give us more money. That'll get us closer to infinite money.
Big Business: Fuck you. Learn to do math, assholes.
City Government: I'm afraid we really must insist. We're going to raise your taxes.
Big Business: Then I guess we'll just move down the road to the next city. See you later.
City Government: But... but... you can't!
[But it turns out they can. Return to top and start again.]
So all those high paid Apple employees don't pay property taxes on their homes in the area? They don't pay sales taxes on the stuff they buy around town?
How does a local city government think it is entitled to tax revenue earned on sales in (other country) after the company already paid (other country) income taxes?
If you were not trying to destroy companies with overbearing tax rates they wouldn't need to use LEGAL routes to reduce the burden.
Never mind that corporations paid a 90% tax rate in the 1950's.
Silly Mayor, don't you know that unlike all other Evil Corp., Apple gets an automatic 'pass'? Because iPhone.
Hey, Windows users, there is no such thing as "forward" slash, there is only slash and backslash.
Middle-class doesn't stockpile money anymore, much like the poor.
Only wealthy individuals and corporations do, and it's a huge detriment to society.
Assets stockpiled (held in excess) anywhere should be taxed to prevent an economy from drying up when a handful of The Rich have everything.
It's called a Wealth Tax. France has it. America needs it.
Without it, humanity cannot survive a fully-automated economy. Since 2008 America experienced a "Jobless Economic Recovery" via automation. This isn't Science Fiction, it's today. Humanity needs wealth taxed.
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