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Every US Taxpayer Has Effectively Paid Apple At Least $6 in Recent Years (arstechnica.com)
An anonymous reader shares an ArsTechnica report: Apple has received at least $6 per American taxpayer over the last five years in the form of interest payments on billions' worth of United States Treasury bonds, according to a report by Bloomberg. Citing Apple's regulatory filings and unnamed sources, the business publication found "the Treasury Department paid Apple at least $600 million and possibly much more over the past five years in the form of interest." By taking advantage of a provision in the American tax code, Bloomberg says that Apple has "stashed much of its foreign earnings -- tax-free -- right here in the US, in part by purchasing government bonds." As The Wall Street Journal reported in September, American companies are believed to be holding approximately $2 trillion in cash overseas that is shielded from US taxes. Under American law, companies must pay a 35-percent corporate tax rate on global profits when that money is brought home -- so there is an incentive to keep as much of that money overseas as possible.
Oh good grief. That's how bonds work. That's Apple investing in the US.
the real problem is crony "capitalism", and it happens on both sides, its not a republican or democrat exclusive. Its not a free market when the government picks winners and losers. Say what you will about the Libertarian party but they have been talking about this issue for as long as I can remember, I just hope next time we get an opportunity to shine with two deplorable major party candidates we don't nominate a total stoner!.
It says $6 per taxpayer.
"His name was James Damore."
Part of the issue is that the U.S. has one of the highest corporate tax rates in the world. If it were lowered, companies would probably be more willing to bring back money or not try to store it overseas because there would be no financial advantage towards doing so. Even the Nordic countries that are often regarded as having the best social safety nets (or even outright referred to as being socialist, albeit by silly people who don't know what socialism is) have lower corporate tax rates that are more in line with the rest of the world.
We probably wouldn't be having this conversation if the U.S. had similar rates to the rest of the world.
You don't quite have it right.
The National Deficit is the difference between the money the government raises each year in taxes, and the money it spends each year. Reducing the deficit requires increasing income or reducing spending.
The National Debt is the money that the U.S. Government has borrowed to cover each year's Deficit.
And the U.S. Treasury Bond is a physical manifestation of the National Debt. It is an IOU. You give the government money now, and they give you a Bond that promises to pay you back with interest in the future.
But you're right that the story is hate-bait. Apple, having followed all applicable laws, has money overseas. It is legally using that money to help fund the country's national deficit. In exchange for offering that credit to the United States, Apple receives an interest payment, just like any other bond purchaser. Apple is not extorting $6 per taxpayer from the Government; Apple is loaning the government its money, money the U.S. Government is not legally entitled to have, and the government is willing to borrow enough from Apple that the interest payments come out to $6 per taxpayer.
Buried in the original Bloomberg article, you'll find that Apple has to send the money back overseas when they sell the bond; if they keep it in the U.S., it becomes taxable. And the interest they make on the bond is taxable. So by doing this, Apple is helping keep the government afloat by financing the Debt, and is paying income tax on the interest they earn. They could just invest it overseas, where it would do nothing for America.
Funny how the answer isn't to eliminate the deficit and pay down the Debt so it isn't necessary to sell billions of dollars of Treasury Bonds that Apple and others can buy with foreign capital—it's to tell companies that they should pay U.S. taxes on money that wasn't earned in the U.S., hasn't been brought to the U.S., and to date won't be spent in the U.S.
Trump...business savvy? Errrr...3 or 4 bankruptcies, no U.S. bank will loan to that deadbeat, the word in business is to get your money up front if you deal with Trump. I think the appellation Sgt. Bilko is more apt.
Kansas is a perfect example. Forget GSP (the state version of GDP) and Mercatus. Look at the trendlines. Since they've had this experiment in extreme trickle-down economics, they're rapidly heading into the shitter.
http://www.bls.gov/eag/eag.ks....
http://www.kansascity.com/opin...
You are welcome on my lawn.