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Apple Will Start Paying Ireland Billions Owed in Back Taxes 'Early Next Year'
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US Loans abroad (Especially in Europe) are so enormous that even if every US Citizen would be pay 100% or their income in tax it would not be enough to cover the interests. No one is interested in a trade war. A bankrupt US would make the world plummet in to a depression that no one would be even able to imagine. Same if the EU went... Global Chain Reaction. So lets just hope that never happens !
GST is a sales tax that is collected by the retailer.
Even if the retailer makes a loss, the GST paid by the consumer must be passed on to the government, business losses can not be deducted from the GST payable.
GST registered companies however can claim the GST back on products they buy, even where they are the end consumer (eg petrol, water, power, etc etc)
Apple is NOT paying any taxes.
All taxes is actually paid by the consumer. If you added a 50% tax (...any kind of tax) to a company, they will add the same amount to the final product. The company will always maintain its margins and transfer the tax to the consumer (sorry, consumers don’t win)
That’s why Apple stuff is so expensive in Brazil.
So you either tax an entity in the profit side (income tax) and they will eventually float it back to the consumer; or have a consumption tax (sales tax) direct to the consumer. Either way or both ways the feds get their money and the consumers pay. If your jurisdiction (country, province, municipality) has too high income taxes the company will just move to their income side to more tax friendly jurisdiction. If they have too high consumption taxes consumers will just buy from another juristiction.
Relax internet hyperbole man. I think you quoted my post by accident since nothing you say has anything to do with what I said. Trade wars...what are you talking about????
It’s risky business when you agree to terms and some other party jumps in and declares those terms unacceptable. Apple agreed to something with Ireland but now it’s broken. Other companies will know that the EU is someplace where that can happen.
The US is number 1 is having internet trolls go apoplectic about it into stream of conscious nonsense. And we are current World War champions 3 wars running...so hey there we go.
Wow, you are very misinformed about taxation and public funding. Everything in his analogy is partly paid for through Federal income taxes. For instance, roads were suppose to be paid for through the National Highway Trust Fund - that is funded by gasoline taxes. But, they don't cover all of the spending so the deficit has been paid through the general fund (i.e. Federal income taxes). Similar Federal funding mechanisms exist for schools and hospitals too.
And like any of us, Apple has the right to negotiate with the taxing authority. If that TA then agrees to a lessor value that is paid, who has the right to say otherwise? In this case a 3rd party organization is telling a sovereign state (Ireland) that they cannot negotiate and accept a tax plan.
Agree with Ireland/Apple... disagree with them... it shouldn't matter. Ireland *should* have the authority to deal with levied taxes as they see fit.
So until they win the appeal, they still have to comply with the original order. Come on, keep up...What....But but ... so many here told me apple owes nothing .... this must be fake news !!
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Yeah.... those roads, infrastructure, schools , hospitals blah blah .... build themselves
Don't be so condescending. Especially when wrong. The Federal Government gives money to states yes, for certain things. They help with Interstate highways for example (which many years ago was the leverage they used to force a nationwide speed limit on us... no speed limit, no money). But the vast majority of those things are paid for locally. I live in Washington State, and don't you dare try to tell me the federal government pays for my local roads. And don't you dare try to tell me the Federal Government pays for local schools, etc. Absolutely not. I would recommend that you look at your local property tax bills, and see a list of the things that they fund. If you can show me a single bill that does not pay for roads, hospitals, schools, etc. I will drop dead of a heart attack.
Edit: I'll go out on a limb and guess you have never even paid property tax, and probably don't know what it is (a County's primary source of revenue). And i won't bother trying to explain to you how all of the things that you see in your community (roads, schools, etc) are paid for by your county. I doubt you will ever understand. And i doubt you would ever realize or wonder why some counties have such great roads and infrastructure, and others have very crappy roads and infrastructure. And i won't bother trying to explain to you why when one of your local utilities or schools needs something they put a funding bill on the local election ballet (i mean, if the Federal Government paid for it why would it be voted on only by local voters, right?).
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Apple owned nothing due to a special arrangement with the Irish government. Then the EU stepped in and decided to step in retroactively and say the Irish tax percentage wasn’t legal. Apple did not own any tax at any point since EU hasn’t been trying to rewrite the rules until recently. While I agree that Apple should pay more taxes, I think it should be because they are obligated to through legislation, not through some kind of social responsibility.
But Apple is paying money... There would no reason be to pay into an escrow account if the results would turn out as "well Apple can keep it"
Why pay then?
If its in an escrow account, wouldn't that be like kind of like a "middle man" where someone else decides, and neither can just have the power over the other?
Allot safer, while decision is made. As either party may try to weasel its way out.
And who gets to decide the amount Apple should have paid? Ireland broke the rules here (retroactively), not Apple. Besides, do you think even that 12 million would be in Ireland had the tax cut not been there?
lol. Doubling down is a thing now. You're free to be delusional. I don't mind.
An interesting thing put out by Washington State. Funny how many of the funding sources for Washington State transportation are federal in origin.
Doesn't make a slice of difference, this is tax on sold products in europe, doesn't matter were it is made or created. The profit is still ending up in a tax haven.
You are just being ridiculous. Obviously the Federal Government has programs to help States in various things. A lot of those programs were put in place to try to spur economic recovery (read about the New Deal... Roosevelt... put in place during the Great Depression to try to help recovery, as a big example of this, or the discussions that took place when these more recent programs were put in place). And the vast majority of these programs deal specifically with things that are Interstate in nature (affect more than one state). And obviously States choose to have programs to help out counties and cities. But to suggest its their responsibility to build and maintain local roads and schools and hospitals is absurd.
I don't have time to find you a better article, but read this:
http://positivearticles.com/blog/3274/where-does-the-property-tax-money-go/
It briefly outlines some of the things that property tax (which as i mentioned before, is County's primary source of revenue) goes to fund. Schools, roads, emergency services (hospitals, fire departments, etc) receive the majority of property tax dollars.
Tell you what... why don't you go to your next county board meeting, where they discuss the budget (since clearly you have never been to one).. and when they are discussing the budget and expenditures on schools and roads, you can raise your hand and stand up and point out to them that they should not discuss that, because the Federal Government pays for all those things. I would soooo love to be there when that happened.
See attached image. Notice the part about the Federal Government helping with construction and upkeep of "airports, transit systems and major roads" .... i.e. anything interstate.... but has very little to do with anything else.
I don't even know why i bother replying to people like you. You clearly know nothing about
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ehhh, no. They agreed to implement laws, that in return gives them access to the single market (the construct that allows Apple to tax profit from Europe in Ireland in the first place). One of them is "no special taxing" as it is state aid.
Obtuse (un-intentional or purposeful?). Nobody ever said the Federal Government funds 100% of those things. But, it was you that denied that the Federal Government paid for any of it.
lol. Sorry for using your completely reasonable post to put forth my own "pet-peeve." A functioning democracy requires a responsible and engaged citizenry - the antithesis of "It's the governments fault".
Russia did far more to win WWII than anyone else
You failed in Korea
You lost in Vietnam
If anything you created a massive mess in the Middle East
Afghanistan is hardly a win
As for Apple/Amazon, the EU has said their "sweetheart" tax deal amounted to government subsidies. Ireland is allowed to set its tax rates, however by setting low ones specifically for Apple amounted to a subsidy which is illegal under EU laws.
Think of it this way. If you and a shop next door were effectively the same, but selling competing product lines. The shop next door had a deal where they would only pay 10% in taxes while you had to pay 30%. I am sure you'd be complaining loudly about how your competitor was being subsided , especially if the lowered their prices and put you out of business.
I never said they don't pay for anything. I made a good natured post (hence the grinning face) that pointed out that the Federal Government has little to do with all of the things listed in that original post. You then felt the need for some reason to be very condescending to me.
The fact remains that the majority of funding for all of those things is local. Sure, someone can post a link to a government website showing that the Federal Government has an educational grant program... but does that mean they build and maintain local elementary, middle, or high schools? Sure, someone can point to some federal programs that offer funding for specific health initiatives, but does that mean the federal government is in the business of building local hospitals? Or maintaining or operating them? Sure, you pointed to an article showing a Federal program to help with a few specific highway programs.... but does that mean the Federal Government builds and maintains local roads.
See chart below. Of 4.12 million miles, the Federal Government is responsible for roughly 3%... just 3%! And this principally Interstate highways, and parks, etc.
So... between your assertion that the Federal Government pays for roads, and my assertion that local governments do.. I'll stand by mine.
But if you want to have a decent discussion in the future... try to not start out each post by being so condescending. Even in situations where you could be correct in a debate, you won't persuade anyone to your link of thinking if you completely insult them at the go.
However, Ireland is not part of the USA and has NEVER been part of the USA.
Ireland is outside the jurisdiction of US laws and tax systems.
HOWEVER, the advantages of state run schools is that they in effect help level the social imbalance. By having counties run schools, wealthy counties are able to fun schools to a higher level than poor counties, likewise everything else funded by counties suffers from the same imbalance. State run schools have a financial model that offers greater funding to poorer areas improving the educational outcomes for lower socioeconomic groups thus bettering the whole economy.
I will stick with state run services, they are cheaper over all, it considers all citizens as being equal and entitled to the same level of assistance irrespective of wealth (you don't get more voltes because you are wealthy, its one man, one vote)
The US seems to have the policy everyone is equal, some are just more equal than others.
I agree with you that this is the issue... the nature of the EU agreements among member States. And this is a battle they they are duking out presently. And i have no issue with how it shakes out, regardless of who wins. Its with all the people that have the knee-jerk reaction to Apple be crooks or ripping people off that i have an issue with. And this isn't a defense by me of Apple in particular... its of any company that does what is asked of it by a country, but then has the goal posts moved.
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Well, this is a different argument for a different day...
Until things change, they are what they are and people can "vote" with their feet. For example, i have three daughters. None are in school yet. But when they are, i'll be paying extra attention to the quality of schools. If i don't like the way the local ones are run.. i can either try to get involved and change things... or i can move my family to somewhere that has schools i like better. Many people do choose to do this.