Register FAQ / Rules Forum Spy Search Today's Posts Mark Forums Read
Go Back   MacRumors Forums > Mac Community > Community Discussion > Politics, Religion, Social Issues

Reply
 
Thread Tools Search this Thread Display Modes
Old Jan 4, 2013, 02:53 PM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
Apple Paid $6 Billion in Federal Income Tax in 2012, 1/40 of All U.S. Corporate Income Tax Collected




The New York Times reports on a congressional investigation into the tax policies of technology giants, including Apple.

The Senate Permanent Subcommittee on Investigations is nearly finished with a year-long investigation into the methods that large technology companies use to avoid paying U.S. corporate income tax. Apple, for its part, allocates some 70 percent of its income to overseas affiliates where tax rates are much lower.

It appears that all of Apple's techniques are legal by U.S. law, though some politicians have said that corporations going to extraordinary lengths to avoid paying income tax and that they are violating the spirit of tax laws.
Quote:
In its statement, Apple said it paid "an enormous amount of taxes" to local, state and federal governments. "In fiscal 2012 we paid $6 billion in federal corporate income taxes, which is 1 out of every 40 dollars in corporate income taxes collected by the U.S. government," it said.
Apple was one of the first companies to use the accounting scheme called a "Double Irish With a Dutch Sandwich", where profits are routed through Irish and Dutch subsidiaries before finally landing in the Caribbean. Now, hundreds of companies use those methods.

Apple also has moved revenue to its Braeburn subsidiary in Nevada and International locales where the company pays little to no tax.

Note: Due to the inevitable political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Paid $6 Billion in Federal Income Tax in 2012, 1/40 of All U.S. Corporate Income Tax Collected
MacRumors is offline   0 Reply With Quote
Old Jan 4, 2013, 02:55 PM   #2
blacktape242
macrumors 6502
 
Join Date: Dec 2010
Location: Sacramento, CA
"and its gone......"

I hope someone gets that joke....
blacktape242 is offline   29 Reply With Quote
Old Jan 4, 2013, 02:58 PM   #3
starflyer
macrumors 6502a
 
Join Date: Jan 2003
Send a message via AIM to starflyer
At our current spending rate that will last us about a 1/2 day.

We don't have a revenue problem.
__________________
27" iMac 3.5GHz i7: | 15" Retina MacBook Pro | iPhone 5s White | iPad Mini White
starflyer is offline   41 Reply With Quote
Old Jan 4, 2013, 03:03 PM   #4
Morshu9001
Banned
 
Join Date: Dec 2012
Location: the capital of Assyria
Quote:
Originally Posted by starflyer View Post
At our current spending rate that will last us about a 1/2 day.

We don't have a revenue problem.
Agreed. I can't believe they didn't do some big cuts during the Fiscal Cliff negotiations. One of the few things I hate about Obama is how he's spineless like that. But I still support him over Romney.
Morshu9001 is offline   4 Reply With Quote
Old Jan 4, 2013, 03:08 PM   #5
starflyer
macrumors 6502a
 
Join Date: Jan 2003
Send a message via AIM to starflyer
Quote:
Originally Posted by Morshu9001 View Post
Agreed. I can't believe they didn't do some big cuts during the Fiscal Cliff negotiations. One of the few things I hate about Obama is how he's spineless like that. But I still support him over Romney.
Plus everyone's social security tax is going up 2%. So much for only incomes of $250,000 and above going up. $1500 is important to my family.
__________________
27" iMac 3.5GHz i7: | 15" Retina MacBook Pro | iPhone 5s White | iPad Mini White
starflyer is offline   4 Reply With Quote
Old Jan 4, 2013, 04:36 PM   #6
Geckotek
macrumors G3
 
Geckotek's Avatar
 
Join Date: Jul 2008
Location: NYC
Quote:
Originally Posted by starflyer View Post
Plus everyone's social security tax is going up 2%. So much for only incomes of $250,000 and above going up. $1500 is important to my family.
Although it's not really "going up", but a temporary deduction is expiring. Not the same thing.
__________________
Gecko Art | Facebook | flickr
Geckotek is offline   2 Reply With Quote
Old Jan 4, 2013, 10:07 PM   #7
RyanG
macrumors regular
 
Join Date: Sep 2007
Quote:
Originally Posted by starflyer View Post
Plus everyone's social security tax is going up 2%. So much for only incomes of $250,000 and above going up. $1500 is important to my family.
Are you that ignorant? The SS tax is retreating back to its ORIGINAL amount. Welcome to 2010 where the tax holiday was passed, but opposed by republicans (I'm republican but your post sounded against Obama). Please, before making any financial related posts, learn a thing or two.
RyanG is offline   0 Reply With Quote
Old Jan 8, 2013, 03:57 PM   #8
diane143
macrumors 6502
 
Join Date: Oct 2008
Quote:
Originally Posted by starflyer View Post
Plus everyone's social security tax is going up 2%. So much for only incomes of $250,000 and above going up. $1500 is important to my family.
I went through a couple more pages and didn't see a response, so here goes.

2 years ago, they dropped the SS rate by 2%. So they're just putting it back to where it was. Employers have been paying the extra 2% (6.2%) all along.
diane143 is offline   2 Reply With Quote
Old Jan 4, 2013, 03:14 PM   #9
WestonHarvey1
macrumors 68000
 
Join Date: Jan 2007
Quote:
Originally Posted by Morshu9001 View Post
Agreed. I can't believe they didn't do some big cuts during the Fiscal Cliff negotiations. One of the few things I hate about Obama is how he's spineless like that. But I still support him over Romney.
How is he spineless? He said he was getting what he wanted, and he got what he wanted. You expected him to cut anything? Why?
WestonHarvey1 is offline   2 Reply With Quote
Old Jan 4, 2013, 03:16 PM   #10
Morshu9001
Banned
 
Join Date: Dec 2012
Location: the capital of Assyria
Quote:
Originally Posted by WestonHarvey1 View Post
How is he spineless? He said he was getting what he wanted, and he got what he wanted. You expected him to cut anything? Why?
Cause stuff needs to be cut, and cutting stuff angers unions, special interest groups, etc. Do you realize that the system is set up to elect those who spend more and kick out those who cut spending?
Morshu9001 is offline   3 Reply With Quote
Old Jan 4, 2013, 06:51 PM   #11
MacDav
Banned
 
Join Date: Mar 2004
Quote:
Originally Posted by Morshu9001 View Post
Agreed. I can't believe they didn't do some big cuts during the Fiscal Cliff negotiations. One of the few things I hate about Obama is how he's spineless like that. But I still support him over Romney.
At this point what does Romney have to do with it?
MacDav is offline   1 Reply With Quote
Old Jan 4, 2013, 06:31 PM   #12
imageWIS
macrumors 6502a
 
Join Date: Mar 2009
Location: NYC
Quote:
Originally Posted by starflyer View Post
At our current spending rate that will last us about a 1/2 day.

We don't have a revenue problem.
It's a dual problem, both revenue has to be increased AND spending has to be cut.

----------

Quote:
Originally Posted by hipnetic View Post
"Tax" is just newspeak for theft. When the government steals your money, it's called a tax. When an individual steals your money, it's appropriately called theft.
Nonsense. Tax is the cost you pay for civilization.
imageWIS is offline   1 Reply With Quote
Old Jan 4, 2013, 07:55 PM   #13
hipnetic
macrumors 6502
 
Join Date: Oct 2010
Quote:
Originally Posted by skunk View Post
A government has to provide services in return. Tax is a fee.
I'm not interested in their services. But they won't let me opt out, and take my money by force. Hence, it is theft.

Quote:
Originally Posted by imageWIS View Post
Nonsense. Tax is the cost you pay for civilization.
Oh dear. We wouldn't have civilization without government and taxes?

Quote:
Originally Posted by quagmire View Post
So how do you think the government should operate on? Fairy dust? Your tax money goes into paying for the Defense Budget, goes into paying for the airports, roads, bridges, rails, etc that you enjoy every day, among other functions.
Those things can all be provided by the free market. And they'd be better quality, and less expensive. There was no "Defense Budget" when the early Americans fought back the British.

Oh well...I see that I'm wasting my time in this thread.
hipnetic is offline   1 Reply With Quote
Old Jan 4, 2013, 08:15 PM   #14
quagmire
macrumors 603
 
quagmire's Avatar
 
Join Date: Apr 2004
Quote:
Originally Posted by hipnetic View Post
Those things can all be provided by the free market. And they'd be better quality, and less expensive. There was no "Defense Budget" when the early Americans fought back the British.

Oh well...I see that I'm wasting my time in this thread.
Who in the free market would maintain the nations huge highway system( do you even know why we have highways?) Who would maintain the airports and ATC? The airlines don't want to. Their profits are thin enough. You think Lockheed will build a F-22 because they are patriotic and want to defend the US? The free market doesn't give a crap about the US.

I'm sick and tired of people who claim the free market is the answer to everything. It can't do everything. It can't be left unchecked.
__________________
Crimes against US History:
CV-6 USS Enterprise
Yankee Stadium
Penn Station-New York
quagmire is offline   1 Reply With Quote
Old Jan 5, 2013, 07:23 AM   #15
skunk
macrumors Demi-God
 
skunk's Avatar
 
Join Date: Jun 2002
Location: Republic of Ukistan
Quote:
Originally Posted by hipnetic View Post
I'm not interested in their services. But they won't let me opt out, and take my money by force. Hence, it is theft.
You use their services every single day.

Quote:
Those things can all be provided by the free market. And they'd be better quality, and less expensive.
Absolute nonsense.

Quote:
Oh well...I see that I'm wasting my time in this thread.
This would appear to be true.
__________________
"The louder he talked of his honor, the faster we counted the spoons." -- Ralph Waldo Emerson
skunk is offline   2 Reply With Quote
Old Jan 5, 2013, 07:39 AM   #16
rdowns
macrumors Penryn
 
rdowns's Avatar
 
Join Date: Jul 2003
Quote:
Originally Posted by hipnetic View Post
I'm not interested in their services. But they won't let me opt out, and take my money by force. Hence, it is theft.

Do you really expect anyone to take a comment like that seriously? What are you interested in opting out of?

Your "freedom" protected by the Dept. of Defense?
Relatively clean air and water regulated by the EPA?
Paved roads paid, in part, by the Dept. of Transportation?
Food that won't kill you regulated by the Dept. of Agriculture?
Public power monopolies regulated by the Dept. of Energy?
__________________
If your religion is worth killing for, please start with yourself.
rdowns is offline   1 Reply With Quote
Old Jan 7, 2013, 03:58 PM   #17
Dave00
macrumors 6502a
 
Join Date: Dec 2003
Location: Pittsburgh
Quote:
Originally Posted by starflyer View Post
At our current spending rate that will last us about a 1/2 day.

We don't have a revenue problem.
I may be overly optimistic that confronting such a statement with facts will do any good, but I will try anyway.
Percentage of GDP in taxes, 2001 (last year of budget balance): 19.5%
Percent GDP in taxes, 2011: 15.4%
Percent GDP in spending, 2000: 18.2%
Percent GDP in spending, 2011: 24.1%
The great majority of the extra spending came from two wars and Medicare Part D. The great majority of the lower taxes came from lowered income and investment tax rates in 2001 and 2003.
There is no way to fix the problem without both decreasing spending and increasing taxes. You want to balance the budget without raising taxes? The last time spending was less than 15.4% was in 1951. You could fix the problem completely by pulling out of Afghanistan, funding Medicare Part D, and letting taxes return to 2001 levels.

Dave
Dave00 is offline   0 Reply With Quote
Old Jan 4, 2013, 02:59 PM   #18
Sixtafoua
macrumors 6502
 
Join Date: May 2009
Location: Boston, MA
In related news, 12 billion worth of iPads were bought for US schools.
Lol jk most schools can't even afford paper.
__________________
Website
Sixtafoua is offline   10 Reply With Quote
Old Jan 4, 2013, 02:59 PM   #19
fins831
macrumors 6502a
 
Join Date: Oct 2011
Quote:
Originally Posted by blacktape242 View Post
"and its gone......"

I hope someone gets that joke....
Were going to take your investment and put it in an off shore checking account, invest in precious metals in China, use the interest to take out a mortgage, ANNNNNND its gone....
__________________
iPhone 5 Black 32 gig
2012 MacBook Pro 16 Gig 256 SSD
iPad 3
fins831 is offline   9 Reply With Quote
Old Jan 4, 2013, 04:57 PM   #20
TrentS
macrumors 6502
 
Join Date: Sep 2011
Location: Overland Park, Kansas
Trump Bank!

Quote:
Originally Posted by fins831 View Post
Were going to take your investment and put it in an off shore checking account, invest in precious metals in China, use the interest to take out a mortgage, ANNNNNND its gone....
"Move out of the way, so costumers with money can be helped!"

TrentS is offline   1 Reply With Quote
Old Jan 4, 2013, 05:02 PM   #21
skunk
macrumors Demi-God
 
skunk's Avatar
 
Join Date: Jun 2002
Location: Republic of Ukistan
Quote:
Originally Posted by TrentS View Post
"Move out of the way, so costumers with money can be helped!"
Are we talking Karl Lagerfeld here?
__________________
"The louder he talked of his honor, the faster we counted the spoons." -- Ralph Waldo Emerson
skunk is offline   2 Reply With Quote
Old Jan 4, 2013, 02:59 PM   #22
KPOM
macrumors G3
 
Join Date: Oct 2010
The easy solution is to eliminate the corporate income tax altogether. Perhaps replace it with a small consumption tax on the ultimate buyer. At the end of the day corporations just collect taxes. People (whether customers, employees, or shareholders) ultimately bear the burden of corporate taxes.

Barring that, then just lower the corporate tax rate to what other countries have, and don't tax overseas income (most countries don't). The current system creates a perverse incentive for multi-national companies to leave their profits overseas, since they would wind up paying the difference between 35% and the foreign rate if they brought the money home. We gave a tax holiday to multinationals in 2004 and companies repatriated billions of dollars.
KPOM is offline   27 Reply With Quote
Old Jan 4, 2013, 03:02 PM   #23
sportsfan
macrumors regular
 
Join Date: Nov 2009
What do you think would happen if corporate tax went away?

1. Corporations will lower their service costs
2. Pocket it all for Upper Mgmt bonuses
sportsfan is offline   26 Reply With Quote
Old Jan 4, 2013, 03:10 PM   #24
Morshu9001
Banned
 
Join Date: Dec 2012
Location: the capital of Assyria
Quote:
Originally Posted by sportsfan View Post
What do you think would happen if corporate tax went away?

1. Corporations will lower their service costs
2. Pocket it all for Upper Mgmt bonuses
No, they'll lower the prices, just like how they raise prices when taxes go up. You'd also have to raise the sales tax a bit. The idea is to switch the tax system over to a non-avoidable method.

But the one problem is that sales tax is not as fine a tool as income tax. Still, it's worth it.
Morshu9001 is offline   3 Reply With Quote
Old Jan 4, 2013, 03:22 PM   #25
SPUY767
macrumors 68000
 
SPUY767's Avatar
 
Join Date: Jun 2003
Location: GA
Quote:
Originally Posted by Morshu9001 View Post
No, they'll lower the prices, just like how they raise prices when taxes go up. You'd also have to raise the sales tax a bit. The idea is to switch the tax system over to a non-avoidable method.

But the one problem is that sales tax is not as fine a tool as income tax. Still, it's worth it.
People seem to think that stuff happens in a vacuum, and that if one company tries to pay the executives more and not lower prices, than another company won't come along, and use that price advantage to take business away from the first company and make more money in the long run. This lack of understanding of how companies in a free-ish market works is one of the most fundamental problems in US politics.
__________________
Yo' mama's so STUPID, she went to Bangkok to get a TIE Fighter.
SPUY767 is offline   2 Reply With Quote


Reply
MacRumors Forums > Mac Community > Community Discussion > Politics, Religion, Social Issues

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Should the number of votes you get depend on your income and taxes paid? G51989 Politics, Religion, Social Issues 28 May 16, 2014 02:45 PM
Apple Under Investigation for $1.3 Billion Italian Tax Fraud MacRumors Mac Blog Discussion 135 Dec 12, 2013 02:27 AM
Eliminating the Corporate Income Tax ravenvii Politics, Religion, Social Issues 40 Jun 28, 2012 04:24 PM

Forum Jump

All times are GMT -5. The time now is 01:58 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC