Mlrollin91
macrumors G5
Thats not up to Trump, its up to Congress. And Congress is entirely useless.
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Apple Reaches $800 Billion Valuation On Path to Becoming World's First Trillion Dollar Company
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Thats not up to Trump, its up to Congress. And Congress is entirely useless.
BeefCake 15
macrumors 68020
Theoretically, we're hoping that money is used in the U.S economy...realistically, I agree with you
you may be in the US when you buy apps, rent movies, buy movies, buy music from apple, but they claim on their taxes that the sale came from Ireland. They then dodge paying taxes on the profits they made from that sale. That behavior the was set up by Apple has become a role-model for the executives at Amazon, Microsoft, Google and many others. And it is all morally wrong.
Not when it comes to sales made in the Americas, they don't.
If you're claiming that Apple dodges U.S. income taxes on profits that come from sales made in the United States, then you are mistaken. Profits that come from sales made outside of the United States? That's a different matter. But Apple does not funnel domestic sales' profit offshore in order to avoid its U.S. income tax burden. When it comes to profits from sales made in the U.S., and other parts of the Americas for that matter, Apple pays a very high tax rate - and that's without accounting for deferred taxes on undistributed foreign earnings.
IJ Reilly
macrumors P6
Honestly, not even in theory, and nobody can say with an actual straight face that it's even intended to benefit the economy generally. It's designed to benefit the investor class, as most of our tax policy has for the last 35 years or so.
1. Let's not pretend that that's where government spends, or would spend that money if they got their slimy hands on it.
2. So many horror stories when entitled people don't get their hands on other people's money.
3. When that bridge collapses, remember it was the violation of property rights that you sanctioned which led to individuals not being able to compete with that bridge based on a profit motive, because your government stole everyone's money to build it for "free." Remember that it was the lack of individual ownership, and therefore individual liability and responsibility, which led to the lack of maintenance of that bridge, which led to its collapse.
IJ Reilly
macrumors P6
Because they don't. Any foreign tax paid is credited against U.S. corporate taxes owed. This along with the many other adjustments allowed lower the effective tax rate to well below 35%.
TallManNY
macrumors 601
This isn't about the U.S. sales. Those all get reported as U.S. income. Apple set up their system so that when they make an iPhone in China, ship it to Italy, sell it in Italy, they don't have to immediately pay U.S. taxes on the profit from those sales. Really it isn't that odd. Must countries if they were in the U.S.'s position would also not tax that sale in Italy. And I don't think it is immoral that the Apple store in Italy doesn't claim huge profits. Because I don't think those profits were generated in Italy even if the iphone sale occurred there.
BeefCake 15
macrumors 68020
If that same money went back to mid size and small business, you'll see a huge jolt in the economy. Investors and big corporations are money hoarders and are the ones that created this situation to begin with.
sw1tcher
macrumors 604
Apple has a fiduciary duty to maximize return for shareholders. This meant it was cheaper for them to sell bonds and use the money to finance share buybacks and pay out dividends vs paying up to 35% in taxes to bring the money back to the U.S.
Do you like paying higher taxes?
BeefCake 15
macrumors 68020
IJ Reilly
macrumors P6
That's a good point. Bang for the economic buck come from businesses reinvesting in growth. The biggest companies, with Apple on the top of the list, already have access to more than enough to do whatever they want.
dannyyankou
macrumors Pentium
Well, they're a little reluctant at times. i.e. taking 4 years to admit they were wrong about the Mac Pro.
bopajuice
Suspended
Making almost a trillion dollars selling outdated hardware. How do you do it Apple?
Are there subliminal ads in the iPhone commercials?
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I bought at $50 and sold at $65. Stupid me...
Are there subliminal ads in the iPhone commercials?
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I bought at $50 and sold at $65. Stupid me...
bollman
macrumors 6502a
The entire NASDAQ is worth 7,4 trillion (maybe more now, those were the figures I found) and then Apple is 1/8th of the total value of that entire stock market.
It's not difficult to see that "analysts" are not so eager to devalue Apple. As long as AAPL stock keep rising, that means big money. I think it's starting to look more and more like a pyramid scheme. If AAPL were to loose 50%, that's like an entire country evaporating.
It's not difficult to see that "analysts" are not so eager to devalue Apple. As long as AAPL stock keep rising, that means big money. I think it's starting to look more and more like a pyramid scheme. If AAPL were to loose 50%, that's like an entire country evaporating.
kdarling
Contributor
Sure, we all take deductions.
But the majority of US taxpayers don't set up foreign shill companies, and elaborate IP transfer schemes that span the globe, in order to avoid taxes.
It didn't the last time there was a tax holiday. Companies swore it would increase jobs etc. Instead, jobs decreased, and the rich got richer.
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urnotl33t
macrumors 6502a
Unfortunately, this won't. This holiday was done about 15-ish years ago and it didn't help. Shareholders got a one-time special dividend, which went almost nowhere. It never 'trickled down' or got to where it was supposed to go. Pundits and investor types will say "oh we put that money into other investments, etc." Yes, but "etc." was not "paycheck bonuses for your employees" like we were all snowed into believing. It just stayed "up top" and never ultimately got back to US Treasury. Shortly after that holiday, a little event known as "World Financial Crisis/Global Recession" happened. Huh. Funny thing.
Charlie Munger recently said "Tax holidays don't help anyone. Companies will be encouraged to keep money off shore and do it again, waiting for the next holiday." He even used the word 'disgusting' in that commentary, too.
I do wish and hope such an event would be beneficial to the common folk, but it never will. Greed is waaay too powerful. 🙁
Disclosure: I do own a hundred-ish shares of AAPL common stock, and have a positive gain return. I would benefit both directly (personal brokerage) and indirectly (personal IRA) from a tax holiday.
I still disagree with a tax holiday. The overall tax structure itself needs fixing so this doesn't have to be an issue.
This gets old after a while. Apple is hardly responsible for tax laws that favor the wealthy or for the decline of American infrastructure. If more people placed the blame where it really belongs perhaps something would get done about it.
When your child gets sick and their medical treatment ruins you financially, remember there was no money for health care because companies like Apple don't pay their fair taxes.
Or even worse, when there is no treatment at all for your child, remember medical research normally takes a lot of tax dollars and right now that spending is way down in the US.
Sshhh! Don't let the secret out. But seriously, isn't the entire economy a pyramid scheme of sorts? It's a closed system and all that increase in value has to come from somewhere.
Mlrollin91
macrumors G5
I think you are confused. Apple does pay its taxes. What they don't want to do is pay another 35% tax on bringing the money back home. Thats a different story.
IJ Reilly
macrumors P6
All too true. Our national tax policy for the last 35 years is all about trickle-down. It's about benefiting the investor class, first, last, and always. I get pretty weary of saying it, but I guess it has to be repeated over and over, because we keep getting more of the same.
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They don't and they won't pay that much, but this has been explained already.
Mlrollin91
macrumors G5
Yes I know. I'm just making the point that you can't say Apple doesn't pay taxes.