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I think the real problem some people have with some companies or people earning vastly more than others is the mistaken view that everyone is equal it terms of earning ability. So for someone like Steve Jobs to earn so much money, he basically cheated at life and therefore he should be punished by paying super high taxes, that then get funneled to the people that could have earned as much if they had cheated too. Of course, nobody can actually explain how Mr. Jobs has cheated to earn his extraordinary income, but they feel sure it wasn't earned fairly.

This view is, of course, complete poop! Steve Jobs worked hard for what he had, he took risks and should get to keep the results of his hard work.

Same goes for companies. The Apple hateboys out there are already mad that Apple makes good stuff with great design. Now it turns out they make lots of money and minimize their tax liability. They again must be cheating at this game.

agreed... just because you took a risk, did everything legally and by the books and became vastly successful, you must have cheated because you couldn't possibly do it on your own. that's the problem with much of the lower and middle class american society today. many feel that those that are successful owe them something, when they absolutely do not.

i was raised in a lower middle class household where every weekly paycheck was needed. when i was 18, i started an indie record label with friends, it went belly up in a year and a half. i worked my ass off, but wasn't successful. bmg or sony don't owe me because i couldn't compete. we both payed our taxes just the same.

you can't just make people who don't get it, suddenly get it. that's why i'd love to see a flat tax for everything. everyone pays xx% actoss the board, no claims, loopholes, or bs. the money came to you here, you pay on it here then they leave you alone.
 
So to reiterate my point, Apple - and ALL other businesses - don't owe **** to local, state, or federal governments, nor should they receive favors from said governments.

Ummm... you realize that the government (local, state, and federal) provide services to businesses, right? What happens when an company's office building has a fire? Who pays for water and sewage infrastructure? Or the roads that lead up to the company's office? Get a clue...
 
Boy with everyone here being an expert CPA, lawyer, and corporate executive, it's amazing they have time to post on this thread. :)
 
Ummm... you realize that the government (local, state, and federal) provide services to businesses, right? What happens when an company's office building has a fire? Who pays for water and sewage infrastructure? Or the roads that lead up to the company's office? Get a clue...

i could be wrong, but i think he ment anything extra and above property taxes which would cover everything you listed.
 
Exactly, and there are multiple meanings of equality. Equal can mean everyone gets the same, regardless of merit or need, or it can mean everyone gets what they deserve/need, to name just two examples. What's being challenged is your notion of equality and fairness. You notion trivializes differences that most would consider quite substantial.

That's your conclusion, but you failed to address a single point that darkplanets made in his post.

We have absolutely no interest in your summary decisions. We have a huge interest in providing facts and reasoning to back up your claims. Just like your earlier analogies, this posting of yours was a FAIL.

Well then you and I are at an impasse. Our conceptions of propriety are fundamentally different.

...and you can't reconcile your opinions against the existing precedent of our Supreme Court. That's not very convincing.

Are you an American?
 
That is indeed the perception that you have. But perception is not the same as reality. You provided three analogies; all three were failures. I asked you to provide some workable analogies; you haven't provided any.

Perception does not seem to match reality in this case.

Clearly the point and use of the analogies was too subtle for you. Perhaps it is best for you to move on.

I'm asking you what alteration in Apple's tax payment would make you happy. You have no answer -- and neither does the Times. That speaks volumes.

No you asked what percentage of tax Apple ought to pay, which is not a question I am interested in. Now that you ask me what alterations I'd like to see. Well, I'd like to see Apple and everyone else stop circumventing the tax code, but let's be honest, that is never going to happen. The only realistic solution is to introduce regulation that closes the loopholes. Once new ones are found, those will need to be closed. The game of cat and mouse will continue indefinitely since abiding by the intent of legislation is not the same as abiding by the letter of legislation.

The NYT didn't mention any Supreme Court case, and it didn't quote Justice Hand. Justice Hand's writing in the opinion of that tax case is quite clear. I am asking you to do some original thinking. You seem to think that Hand's assessment doesn't apply here. Can you explain why you think that?

I already did but you ignored my answer.

You have a house of cards of opinions -- none of which have any legal standing. Your "ethical" pronouncement is in serious doubt.

I'm not concerned with jurisprudence right now. I'm talking about something else. Maybe that point is too subtle for you too.

Really? Do you have some legal case that agrees with your casual opinion here?

Again I'm not contesting or arguing against the legality of Apple behavior. Why do you keep presenting that point? Are you intentionally being dense?

----------

That's your conclusion, but you failed to address a single point that darkplanets made in his post.

If all his points depend on some fundamental point, and you challenge that foundation, all the subsequent points built upon it go down along with the foundation. One doesn't need to tackle them individually.

We have absolutely no interest in your summary decisions. We have a huge interest in providing facts and reasoning to back up your claims. Just like your earlier analogies, this posting of yours was a FAIL.

And I have no interest in wishy washy and vague definitions of fairness. You use the term to defend your proposed "fair tax". But when I ask you for a clear definition of fairness, you provide something that isn't grounded in facts or reasoning. Since that is the basis of your claim, you should make sure you give a good definition.

Are you an American?

Is this relevant? Or are you preparing for ad-hominems?
 
So in 29 pages of posts, we've basically said:
-Technically, this is legal
-Everyone and every company tries to pay as little taxes as possible
-The government is wasteful & inefficient
-This is news only because it's about Apple

That about sums up all 29 pages in 4 bullet points.
 
So in 29 pages of posts, we've basically said:
-Technically, this is legal
-Everyone and every company tries to pay as little taxes as possible
-The government is wasteful & inefficient
-This is news only because it's about Apple

That about sums up all 29 pages in 4 bullet points.

Bravo!

/end thread
 
Clearly the point and use of the analogies was too subtle for you.

This is another disconnect between perception and reality. All three of your analogies were a FAIL. You told us that you had many more analogies; I asked you to provide some that were actually workable. You have failed to to that. I doubt if you have a single workable analogy. :(

Perhaps it is best for you to move on.

Indeed. There's a difference between making a claim and backing it up. If you can't back this one up, it is time to move on.

No you asked what percentage of tax Apple ought to pay, which is not a question I am interested in.

With all due respect, that sounds nonsensical. You don't think Apple is paying enough, and you want them to pay more. But when someone asks how much more, you can't answer. And neither can the NYT.

Now that you ask me what alterations I'd like to see. Well, I'd like to see Apple and everyone else stop circumventing the tax code, but let's be honest, that is never going to happen.

In other words, you just want to be agitated over the issue.

Here's what would cause a change: if there were a Supreme Court decision that altered the earlier precedents.

The only realistic solution is to introduce regulation that closes the loopholes.

No. That's only half the picture.

The realistic solution is to lower the US tax rate AND to eliminate the loopholes. Give the US a competitive tax rate, and the motivation to work so hard to mitigate corporate taxes will be eliminated.

Once new ones are found, those will need to be closed. The game of cat and mouse will continue indefinitely since abiding by the intent of legislation is not the same as abiding by the letter of legislation.

I don't believe you understand: what creates the tension is US's absurdly-high tax rate. Remove that tension, and the very reason for these elaborate measures is eliminated.

I'm not concerned with jurisprudence right now. I'm talking about something else.

But Hand's decisions form the court trump yours -- every single time.

Maybe that point is too subtle for you too.

Hand's words are not subtle at all: There is nothing sinister in arranging affairs to keep taxes as low as possible. All of the "sinister" spin from you is trumped by Hand's Supreme Court decision.

Again I'm not contesting or arguing against the legality of Apple behavior.

Because you also fail to address Hand's "nothing sinister" claim.

If all his points depend on some fundamental point, and you challenge that foundation, all the subsequent points built upon it go down along with the foundation.

Again, perception fails to match reality. If darkplanet's points are refutable, then refute them.

One doesn't need to tackle them individually.

If you want to have a rational fact-based discussion, that is exactly what you must do.

And I have no interest in wishy washy and vague definitions of fairness.

Yet that is exactly what you are doing: you have some wishy-washy and vague definition of unfairness. Same thing.

Talk to the Hand, baby. Our justice system has spelled it out clearly: There is nothing sinister in arranging affairs to keep taxes as low as possible.

You use the term to defend your proposed "fair tax".

The correct name for the proposal -- not my proposal -- is FairTax. Did you spend any time looking at it?

But when I ask you for a clear definition of fairness, you provide something that isn't grounded in facts or reasoning.

WRT fairness in determining how much we should be paying in taxes, Justice Hand has made the definitive statement on the topic. There is nothing -- absolutely nothing -- sinister in arranging affairs to keep taxes as low as possible.

Is this relevant? Or are you preparing for ad-hominems?

Absolutely not. You seemed to be ignorant of what it means when the Supreme Court sets a precedent.
 
That is indeed the perception that you have. But perception is not the same as reality. You provided three analogies; all three were failures. I asked you to provide some workable analogies; you haven't provided any.

That's just your perception that those analogies were not workable. They are in fact very valid analogies. If the new laws protecting the environments still did not exist today, according to you the companies would still have to dump their chemicals into the rivers because they would be obliged by SOX to maximize their profits and dumping the chemicals is a perfect and easy way to do it. And do not think that minimizing tax payments is a totally harmless thing. Those unpaid taxes could go to NIH, medicare etc. and save lives.
 
I'm asking you what alteration in Apple's tax payment would make you happy. You have no answer -- and neither does the Times. That speaks volumes.

I have pointed out something but you seem to pass over that fact. I also pointed out what the unethical part was as well but you seem to pass that over as well.

The unethical part is the token office set up and PO box location and the routing almost the profit threw those offices.

We all know that the pure accounting trickery that the profit somehow goes to these token offices. No real work is done there but some how all the profit is there.

it is that part that is unethical. Sadly ethics has gone out the window in bussinesses. They used to have ethicals in there but no longer.
 
Boy with everyone here being an expert CPA, lawyer, and corporate executive, it's amazing they have time to post on this thread. :)

I'm sure they're billing someone. :D

So in 29 pages of posts, we've basically said:
-Technically, this is legal
-Everyone and every company tries to pay as little taxes as possible
-The government is wasteful & inefficient
-This is news only because it's about Apple

That about sums up all 29 pages in 4 bullet points.

Well, sure, if you appreciate concise forums, but some of us get paid by the word, so we'd never boil it down so succinctly. ;)

Perhaps you missed the one where Apple has a fiduciary responsibility to their stockholders to legally minimize their taxes.
 
Love it!

"How Apple Minimizes its Corporate Tax Burden"

That could have been written so many ways. Switch "Burden" with "Responsibility" please. Because that's what it is.
 
That's just your perception that those analogies were not workable. They are in fact very valid analogies. If the new laws protecting the environments still did not exist today, according to you the companies would still have to dump their chemicals into the rivers because they would be obliged by SOX to maximize their profits and dumping the chemicals is a perfect and easy way to do it. And do not think that minimizing tax payments is a totally harmless thing. Those unpaid taxes could go to NIH, medicare etc. and save lives.

The fundamental flaw in your thinking is that you believe lives won't be saved if tax money doesn't go to these programs and that's just not true. Many of these institutions can take private donations and/or the job that they do can be accomplished more efficiently by the private sector. Would it be better or worse if Apple donated directly to medicare, NIH, or whatever?
 
This is another disconnect between perception and reality. All three of your analogies were a FAIL. You told us that you had many more analogies; I asked you to provide some that were actually workable. You have failed to to that. I doubt if you have a single workable analogy. :(

General remark:
Read this entire point before replying. Stop chopping everything up and out of context.

Back on point:
My oh my you just can't let it go. You distorted the meaning and purpose of my analogies and then asked for more such distortions. Obviously I'm not going to comply with such requests. So let me ask you very simply. Let's see if you can follow along. Do you think that, in general and not talking about Apple and any of their conduct, people can engage in legal behavior that is unethical? If your answer is no, I'll happily provide more analogies to help you grasp that basic point. If you do acknowledge this possibility, then we can move on and there is no point in bringing up the analogies and claiming they failed. They were designed solely for the purpose of proving that legal conduct, in general and not talking about Apple, is still potentially unethical conduct. If you fail to see how those analogies demonstrate that general point, there is a failure of comprehension on your side. You keep repeating over and over how the analogies failed. Well, the analogies were introduced and employed so as to make a general point. You never once explained how they failed to make that general point. You kept claiming they failed because they didn't address what you wanted them to address. But that just goes to show you abused the context in which they were made and have been repeating this same straw man ad nauseum.

Since you want to talk about backing up claims, how about you back up your claim and explain how the analogies fail to make that general point that does not take into consideration Apple's conduct. Let me guess, you are now going to grossly distort things and act as if you have any kind of legitimacy here once again? Are you genuinely incapable of appreciating the point?

With all due respect, that sounds nonsensical. You don't think Apple is paying enough, and you want them to pay more.

I never once said this, so you need to learn how to read more attentively. You should pay attention to what I actually said and stop distorting it. I specifically said I object to the circumvention of the tax code. I don't care if Apple pays 1% tax or 99% tax so long as Apple, or anyone else, doesn't circumvent the nation's tax code. Now, we can respectfully disagree and argue as to whether Apple actually circumvented the tax code, as I claim. But the percentage of tax that Apple or any else should pay is simply not the issue under consideration. You can try and force it upon others as much as you want. That doesn't mean we will bite. So please stop perpetuating these lies that I claimed Apple wasn't paying enough or that I want Apple to pay more.

But when someone asks how much more, you can't answer. And neither can the NYT.

Since I have no problems with the percentage why should I have to claim that Apple should pay more or less? That is a loaded question and should be disregarded.

In other words, you just want to be agitated over the issue.

No, all I wanted to do was express my frustration and dissatisfaction with Apple in this regard. Then people like you came along and told me I had nothing to complain about, so I've been giving you reasons why I think you too should be dissatisfied. This isn't wanted to simply be agitated, it is simply wanting to have a conversation. If you didn't want to have one, you didn't need to engage. So again, please stop your distortion agenda.

WRT fairness in determining how much we should be paying in taxes, Justice Hand has made the definitive statement on the topic. There is nothing -- absolutely nothing -- sinister in arranging affairs to keep taxes as low as possible.

Just to be clear, that's your proposed definition of fairness? I ask you to define fairness and this is the answer you give. Just to be sure, you are satisfied with this answer?
 
[url=http://cdn.macrumors.com/im/macrumorsthreadlogodarkd.png]Image[/url]

As outlined in his previous piece debunking the Greenlining Institute's claim, Tim Worstall notes that Apple reports its effective tax rate in its annual 10-K filings with the Securities and Exchange Commission, and that rate came in at 24.2% for 2011, much more in line with industry norms.

Article Link: How Apple Minimizes its Corporate Tax Burden

Tim Worstall also runs his own numbers and comes up with 18%, not 24.2%. You didn't mention that. The corporate tax rate in the US is 35%. You left that out, too.

Furthermore, anyone looking at the NY Times graph can see that Apple's taxes are not increasing commensurate to even the previous year's profits. In fact, in the Tim Worstall article you will see, even by Apple's own calculations, that Apple's percentages of taxes paid have actually decreased every year from 2009-2011 even as profits increased dramatically. 31.8% to 24.4% to 24.2%.
 
The fundamental flaw in your thinking is that you believe lives won't be saved if tax money doesn't go to these programs and that's just not true. Many of these institutions can take private donations and/or the job that they do can be accomplished more efficiently by the private sector. Would it be better or worse if Apple donated directly to medicare, NIH, or whatever?

Except that Apple did not donate to anybody. Ad money that NIH receives do go to private companies.
 
My oh my you just can't let it go. You distorted the meaning and purpose of my analogies and then asked for more such distortions.

If you say you have a [valid] analogy, then you actually need to provide one. Your three analogies were a FAIL and your "countless other examples" never materialized.

General remark:
When you realize that you have made a claim and can't actually deliver on that claim, please own up to the fact. Acknowledge the error and move on. Simple.

Obviously I'm not going to comply with such requests.

If you can't deliver a single workable analogy, then the time has come to just acknowledge the error and move on.

So let me ask you very simply. Let's see if you can follow along. Do you think that, in general and not talking about Apple and any of their conduct, people can engage in legal behavior that is unethical?

Yes. But our court system has spelled out that is not possible with tax law. There is nothing sinister in arranging affairs to keep taxes as low as possible. Have you bothered to look up that Supreme Court decision?

They were designed solely for the purpose of proving that legal conduct, in general and not talking about Apple, is still potentially unethical conduct.

In other words, you can't provide a single analogy which is pertinent to Apple's arranging its affairs to keep its taxes as low as possible. The actual number of "countless examples" is ... zero. :rolleyes:

Well, the analogies were introduced and employed so as to make a general point.

I never disagreed with the general case -- see my "yes" above. My disagreement was how one could possibly construe any of your analogies as applicable to Apple's behavior.

Unless you can provide specific analogies, there's no point in even bothering.

But that just goes to show you abused the context in which they were made and have been repeating this same straw man ad nauseum.

Um, I don't think you understand the term "straw man".

Since you want to talk about backing up claims, how about you back up your claim and explain how the analogies fail to make that general point that does not take into consideration Apple's conduct.

All you need to do is look up Justice Hand's writeup of the Supreme Court decision. I have repeated words from that decision plenty of times in this discussion.

I never once said this, so you need to learn how to read more attentively. You should pay attention to what I actually said and stop distorting it. I specifically said I object to the circumvention of the tax code.

But the only pertinent thing about the "circumvention" is not paying enough money, right?

I don't care if Apple pays 1% tax or 99% tax so long as Apple, or anyone else, doesn't circumvent the nation's tax code.

You are wrong. The Supreme Court has ruled on that issue: there is absolutely nothing sinister in arranging affairs to keep taxes as low as possible.

Now, we can respectfully disagree and argue as to whether Apple actually circumvented the tax code, as I claim.

Um, how exactly do you think you'll have an opinion that overrules the precedent set by the Supreme Court?

But the percentage of tax that Apple or any else should pay is simply not the issue under consideration.

It's not under consideration at all. The Supremes have spoken, and they spelled out their decision with dazzling clarity.

No, all I wanted to do was express my frustration and dissatisfaction with Apple in this regard.

Say it however you want. It's clear you want to agitate on this issue.

Then people like you came along and told me I had nothing to complain about, so I've been giving you reasons why I think you too should be dissatisfied.

They have never made sense. You have never ever reconciled your opinion with the (much more important) opinion of a Supreme Court Justice.

This isn't wanted to simply be agitated, it is simply wanting to have a conversation.

You start the conversation agitated, and you're unwilling to listen to the reasoned arguments of a Supreme Court Justice.

Just to be clear, that's your proposed definition of fairness? I ask you to define fairness and this is the answer you give. Just to be sure, you are satisfied with this answer?

Go re-read my message. You are still getting confused between fairness and the FairTax.

Do you understand what it means when the Supreme Court sets a precedent?
 
Except that Apple did not donate to anybody. Ad money that NIH receives do go to private companies.

My point is that taxes and government spending don't make the world turn, and if government spending decreased and was replaced by private spending, things will likely be a whole lot more efficient, if not better overall.
 
Every multinational corporation ships profits abroad, not just Apple.

The problem is, that it's legal.

Surely, government officials would love to stop this, but they aren't as powerful as they used to be.

We can bomb a country into stone age, but we can't close down those tax evasion havens like the Bahamas and the British channel Islands and now Ireland as well, not to mention states like Nevada.

We can't close them down - at least not until public pressure is so huge on the elected officials that they can't count on being elected without dealing with this problem.

And have huge corporations pay their share of the taxes, not just evade them.
 
Is this any different from all the ppl hiding their money in Swiss bank accounts so they would not have to pay the taxes? Everyone thought that was ok and the government did not really go after them until everything fell apart a couple years ago. Then they went around putting pressure on the swiss and all the Americans with those dummy accts to make them pay their FAIR share. It would be a lot harder to pressure large corporations than ordinary citizens but hey......
 
Is this any different from all the ppl hiding their money in Swiss bank accounts so they would not have to pay the taxes?

Why, yes. It is categorically different. In your example, people are hiding assets. For these large corporations, they are openly declaring what they're doing.

@JohnDoe98: this is another example of a failed analogy.
 
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If you say you have a [valid] analogy, then you actually need to provide one. Your three analogies were a FAIL and your "countless other examples" never materialized.

See that's because you couldn't follow along. You post a link to somewhere where you claimed the analogies were a fail, but what you forget to mention, intentionally I might add, is that the standard you are holding my analogies to is not one they were ever meant to serve. You claim the analogies fail because none of these analogies are pertinent to Apple's arranging of its affairs. But since I never claimed that they were so pertinent, and since I explicitly told you many times that they were not meant to be pertinent in that regard, your behavior all along just goes to show how incapable you are of keeping things in context. You say they fail to do precisely what I've said they never claimed or served to do. If that's your standard of failure, then you have a very lousy conception of failure, not to mention it is idiosyncratic and a gross distortion of the meaning of fail.

General remark:
When you realize that you have made a claim and can't actually deliver on that claim, please own up to the fact. Acknowledge the error and move on. Simple.

I suggest you heed your own advise.

If you can't deliver a single workable analogy, then the time has come to just acknowledge the error and move on.
They all worked in their proper and original context.


Good, so you should understand the analogies. The fact that you don't suggests to me you are intentionally acting disingenuously. I'm not sure that's a good sign.

But our court system has spelled out that is not possible with tax law.

Whether that is so is besides the point of the analogies. So to mention this in that context shows just how misleading and conniving you are trying to be. Keep discussions in their proper context.

In other words, you can't provide a single analogy which is pertinent to Apple's arranging its affairs to keep its taxes as low as possible. The actual number of "countless examples" is ... zero. :rolleyes:

I never claimed I would give such an analogy; I never claimed I did give such an analogy. I never attempted to give such an example, so of course the number is zero. What I offered to give countless examples of was not analogies that pertain to Apple's arranging of its affairs. Keep it up though you are doing a good job of displaying what kinds of conversations you are genuinely interested in having. You obviously don't want to openly discuss matters and you obviously don't want to be open to the possibility of changing your mind or perception regarding what others have said. And yet, you had the audacity to throw around terms like dogmatism?

I never disagreed with the general case -- see my "yes" above. My disagreement was how one could possibly construe any of your analogies as applicable to Apple's behavior.

Well that is exactly where you started playing with a straw man of your own creation. No one ever claimed to construe these analogies as applicable to Apple's behavior. Heck, I even bolded it for you in my last post. Yet you ignored it. Typical.

Um, I don't think you understand the term "straw man".

Obviously since you fail to see that the position you are attacking is not mine.

But the only pertinent thing about the "circumvention" is not paying enough money, right?

Nope, not everything is about money chap. Sometimes it is about, morals.

You are wrong. The Supreme Court has ruled on that issue: there is absolutely nothing sinister in arranging affairs to keep taxes as low as possible.

The court isn't infallible.

Go re-read my message. You are still getting confused between fairness and the FairTax.

I'm not. I'm asking people who are proponents of the FairTax why they are calling it FairTax. My question is: What is fair about it? You realize they intentionally chose that word, and for a reason. If the tax wasn't aiming at fairness, to call it FairTax would be intentionally deceptive and disingenuous. Maybe you don't have a qualm with deception, lying, etc. I don't know. Either way, I think asking anyone who is a proponent of the FairTax what is fair about their tax proposal is a legitimate question. And if their tax proposal isn't fair, then we need not even entertain it. Time to actually stop dodging and start answering for once.
 
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