Apple CEO Tim Cook and CFO Peter Oppenheimer Testify In Front of Senate Committee on Tax Strategies [Hearing Over]

[Sythas]

Why the Senate won't change the tax system ?

Simple, Senator's company used those loopholes, or "lobbying" company. So everyone else should not use those loopholes.

 

[JoEw]

If they make the Oil Companies pay more taxes, that would be an excuse to increase the price of gas, and we all will have to suffer the consequences.

It's a very complicated matter, like a huge spiderweb, you'll get stuck to it while trying to free someone else.

Apparently they have nothing to do, so they are going for the most vulnerable. The government doesn't care if we have to pay more for our iPads in the future due to a tax increase to Apple.

the fact is that taxes must go up somehow. yes there will be repercussions but you can't have huge entitlement program with an aging population with no way to fund it. That is also not partisan in any way that is economic fact.

If apple wants to keep selling more ipads every year they will have to not raise their prices and stop paying shareholders as much, simple as that. I recognize it is more complex then that. But if all companies have to follow a tax law on their domestic income, all companies are on a level playing field. If only apple pays more taxes, well all their competition will have a bigger margin, some of these congressmen wonder why Apple does not pay more in taxes.. jeesh.

 

[nefan65]

Oh, NOW the Republicans are crying foul and stating Apple took advantage of Tax loopholes. How come they don't go after GE, the Oil companies, and Wall Street?

This is nothing more than a diversion from their failed attempts of the so called coverups, like Benghazi. What a joke...

 

[JPark]

Who's the Senator speaking now? (before McCain) (The guy who came in late due to the IRS hearing?) I'm listening to the radio so I don't get the subtitles.

 

[Big Dave]

Do you have any idea what that would now involve for them?

Apple is gearing up to buy back stock. They buy back a bunch of stock downsize us operations and eventually shut it down. Life goes on and istead of "Designed by Apple in California", the box now reads "Designed by Apple in Ireland."

 

[samcraig]

Apple is gearing up to buy back stock. They buy back a bunch of stock downsize us operations and eventually shut it down. Life goes on and istead of "Designed by Apple in California", the box now reads "Designed by Apple in Ireland."

never going to happen.

 

[Porshuh944turbo]

If you really think there is a different between a D and R, your kidding yourself...

Sadly, sometimes there is not, but if you look at my words, I didn't say Democrat or Republican. I said, "liberal" (as opposed to conservative). There is a big difference.

 

[Doombringer]

"We should be thanking Apple..."

We CAN thank Apple for the good work they've done, but dodging taxes is inexcusable. Yes, what they did is technically not illegal, but it is a very crafty, if not underhanded, massaging of the law's loopholes. This isn't something they stumbled into -- Apple's accountants knew of this method and they took advantage of it, fully and willingly, to make a higher profit by avoiding taxes.

And that's the problem -- they know what they're doing is sneaky. Maybe not "evil" but certainly not angelic.

The US government needs to overhaul the tax code, long-term. Short-term, they need to close these loopholes. Apple needs to own up to what they've done and play fair, for everybody's sake.

 

[vampyr]

Gotta love McCain...
First thing he's worried about is the military...
Then he admits that the tax system is broken...

Then fix the %&*%(#$&% thing you stupid #$# politician!!!!

Our tax system is absolutely stupid. Just take the percentage of tax out of my paycheck based on my income level vs. current cost of living and family status and be done. No filing needed.
Then send me a document showing a more detailed report of how my taxes were determined for the year, and THEN give me a chance to file for any discrepancies I find.

 

[CristobalHuet]

"Johnson goes on to say that corporate tax rates should be eliminated entirely and corporate income should be taxed at the shareholder level."

...

what.

 

[Ryth]

I don't know. Perhaps because Apple is the most aggressive and largest company (as noted by both professors) that they were brought in?

And do you call Apple a tax EVADER? I believe ALL the companies you mention operate within the laws. That means they all take full advantage of tax loopholes.

So again - I defer to my earlier statement. This conversation needs to happen. And if Apple is the best example - it's unfortunate... but I, for one, am glad the conversation is happening.

Some people are objecting to this hearing because they believe since Apple hasn't done anything wrong - this is a witch hunt or that the government is getting greedy. Well - under current tax laws - no - they haven't.

But that doesn't mean the law shouldn't change. And the only way it will change is if it's discussed.

And who really knows. Maybe this is one of several hearings that will take place. Maybe Google and other companies will be in the hot seat then.

There's a finite amount of time for hearings.

The difference is that Apple actually has a real presence and employees in that location

http://www.chron.com/technology/bus...ple-Office-In-Ireland-That-Booked-4534675.php

Levin and them continue to say that Apple does NOT have employees or a presence there which is not true. The same is not true of Google.

• Apple has been in Ireland for a long time. Its Cork operations were set up in 1980.
• It's not just a letterbox. Apple employs 4,000 people to move its billions around the world.
• It's been through good times and bad. When Apple lost market share in the 1990s, the Irish subsidiaries had to fund Apple's R&D without enough incoming cash, and the company nearly went bankrupt.
• It's perfectly legal. To quote the report: "Apple's cost sharing agreement is regularly audited by the IRS and complies fully with all applicable Treasury regulations. "

Google meanwhile (and others) have letterboxes in Dutch and Cayman tax havens and don't employ more then a few employees.

 

[AidenShaw]

Interesting reports from Senate committees yesterday.

Apple's Tim Cook in hot seat as reports detail Apple's tax avoidance

...
A pair of reports issued Monday -- one by the very subcommittee before which Cook will appear -- accused the company of exploiting a variety of loopholes and tax shelters to shift income overseas to avoid paying taxes on tens of billions of dollars in income in recent years. In fact, one of the two reports suggests that Apple has paid virtually no taxes on the $102 billion in overseas cash it held at the end of March.

Senator John McCain, R-Ariz., the ranking member of the Senate subcommittee before which Cook will testify, termed Apple's tax practices "highly questionable."

"Apple claims to be the largest U.S. corporate taxpayer, but by sheer size and scale, it is also among America's largest tax avoiders," said McCain in a statement. "The proper place for the bulk of Apple's creative energy ought to go into its innovative products and services, not in its tax department."

...

 

[rdowns]

Oh, NOW the Republicans are crying foul and stating Apple took advantage of Tax loopholes. How come they don't go after GE, the Oil companies, and Wall Street?

This is nothing more than a diversion from their failed attempts of the so called coverups, like Benghazi. What a joke...

It's a Senate hearing. Who controls the Senate?

 

[paul4339]

Apple is gearing up to buy back stock. They buy back a bunch of stock downsize us operations and eventually shut it down. Life goes on and istead of "Designed by Apple in California", the box now reads "Designed by Apple in Ireland."

They don't even need to do that... they can just re-declare the HQ somewhere else. Accenture re-declared their HQ to Ireland, yet left most of their ops 'as is' in the US. Halliburton re-declared their HQ to Dubai, yet they still have presence in the US.

.

 

[xnu]

Please watch this... It sums the conversation up perfectly. Economist Milton Friedman....

http://youtu.be/RWsx1X8PV_A

 

[PracticalMac]

Haters will Hate, Washington style :/

 

[ECUpirate44]

Apple violated the "spirit of the law."

LOL

 

[spacehog371]

McCain: "It seems to me that Apple has violated the spirit of the law, if not the letter of the law."

They are really trying as hard as they can to make it seem like Apple has done something illegal. They keep saying things like "I suspect this is legal," implying that it may be illegal.

 

[tigres]

Apple violated the "spirit of the law."

LOL

and the letter of the law

 

[Mac21ND]

This may be the only time I agree with Rand Paul.

 

[thekev]

These dirty liberals are just drooling at the thought of getting a chunk of that 100 billion. What a shame. This isn't what our founding fathers wanted when they formed this government.

So true... send Apple back ASAP so they can make more money, and pay taxes on it. They pay BILLIONS and BILLIONS! All you are encouraging them to do and send their ENTIRE operation overseas... congrats!

Rand Paul is my hero.

Get em Rand Paul.

Image

Rand is right... Rand Paul / Ron Paul 2016

Seriously Rand Paul is the only one that 'gets it'

You guys are applauding grandstanding. If you don't like histrionics, don't applaud them simply because they happen to align with your current opinion.

Then why wasn't Microsoft, Starbucks and Google brought up. Google is a massive tax evader doing things Apple is not doing (like Caymen Island accounts, etc)?

It has happened. You just weren't aware of it. Most companies send representatives rather than their CEO, so it makes for a less interesting news story.

 

[Dwalls90]

Hmm, I don't think so. Tell that to Wesley Snipes. 3 years in prison. I don't think he got the memo.

That's tax evasion. COMPLETELY DIFFERENT.

 

[John.B]

Instead of eliminating income tax instantly, maybe set a flat income tax, maybe 15-20% for everyone & everything (individuals, companies, capital gains, etc.). Have that to pay down the deficit while slowly dropping the percentage so that both drop to 0 at the same time.

I've never seen a "flat tax" proposal that wouldn't increase my effective tax rate. Or a "national sales tax" proposal that wouldn't come with huge loopholes (i.e. home purchases). And every effort to "fix" perceived inequities creates a more complex tax code.

 

[Silvereel]

"Johnson goes on to say that corporate tax rates should be eliminated entirely and corporate income should be taxed at the shareholder level."

...

what.

Scary, isn't it?

 

[3282868]

Another thing that needs to happen is people stop looking at the bottom line. Sure, take what you need, plus a little more to have a little fun, but start focusing more on improving yourself and others.

I shake my head when people complain about taxes, yet don't hesitate in dropping hundreds on tickets for sporting events or concerts, and generally live above their means. After Reese Witherspoon's recent antics and having lived in L.A./knowing many in the industry, I refuse to line the pockets of over-paid "celebrities". Our culture places too much emphasis on the "glamorous life", while the majority of us will never see even a small fraction of their wealth. We pay their ridiculous salaries while education, healthcare, and our infrastructure has been falling apart.

America needs to prioritize our lives and country. Education, healthcare, environment and employment are more important than the Kardashian sisters. It's a free nation, it's your money, but don't complain when the system (which needs restructuring) fails to improve and strengthen our nation to compete globally. It all starts with each and every one of us.