Google only pays 2.4% in taxes, skipped out on 60 billion in taxes.

Discussion in 'Politics, Religion, Social Issues' started by chrmjenkins, Oct 21, 2010.

  1. chrmjenkins macrumors 603

    chrmjenkins

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    #1
  2. thejadedmonkey macrumors 604

    thejadedmonkey

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    #2
    Shouldn't "Do no evil" include stuff like creative accounting?
     
  3. Eraserhead macrumors G4

    Eraserhead

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    #3
    I wonder how much Google spent on accountants so they only paid 2.4% in taxes...
     
  4. renewed macrumors 68040

    renewed

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    Even if it was 600 million that is nothing in comparison to 60 billion!
     
  5. Rodimus Prime macrumors G4

    Rodimus Prime

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    #5
    Safe to bet that Apple does it as well. Just it is a bit harder for Apple to pull it off due to its doing mainly hardware sales but it seems like all the big companies do this stuff.

    I think those loop holes that are abused by all the companies need to be closed.
     
  6. Eraserhead macrumors G4

    Eraserhead

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    #6
    But then they can just pay their taxes in another country instead which has lower tax rates.

    Really there are two solutions.

    a) Abandon rule of law and put Google's management in prison until they cough up the taxes they "owe".
    b) Do an international deal with all the main players to harmonise corporation tax policies and solve the problem properly.

    Neither is a particularly good/easy solution - obviously the second is the better approach.
     
  7. bruinsrme macrumors 601

    bruinsrme

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    #7
    If they're not breaking the law I don't see the big deal.
    If there's a loop hole and they found it, good for them.

    35% tax no wonder why companies are leaving the US so dam quick.
     
  8. macquariumguy macrumors 6502a

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    #8
    As a public company, Google has a fiduciary responsibility to their shareholders to maximize profit, including paying as few taxes (legally) as possible. Hard to blame them for that.
     
  9. skunk macrumors G4

    skunk

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    #9
    Hard to blame them for it indeed, but it shows what a ridiculous business tax regime you have. It would make a great deal more sense to have corporate taxes around 20% (like the aim is in the UK) and make sure all corporations pay their share.
     
  10. NT1440 macrumors G4

    NT1440

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    #10
    If companies are considered people here in the US, why the hell would they not be taxed as such? As usual corporations get to use this clause when it benefits them and don't use it when it could hurt them.

    Also, why are these companies abandoning the US if they don't pay the taxes anyway?

    I really can't believe you'd say "good for them" because this kind of **** is destroying our country.
     
  11. bruinsrme macrumors 601

    bruinsrme

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    #11
    That's destroying this country?
    Really?
    A company following the tax laws, yes that is killing the country?
     
  12. NT1440 macrumors G4

    NT1440

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    #12
    Companies don't pay there share of taxes, look at the massive deficit. As usually the people are the ones who will be made to suffer the consequences of this kind of crap as we continue to do anything and everything to help companies make a buck.

    Close these ****ing loopholes, we desperately need economic reform. Good luck getting it through Congress though, its just a branch of big business anyway.
     
  13. Eraserhead macrumors G4

    Eraserhead

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    #13
    Even with that there will probably still be exemptions for some things (like R&D and training) and companies will still be able to re-locate off-shore to a lower tax regime :(.

    Really an international deal is the only way forward but then countries like the UK will have to give up our tax havens and a deal will have to be done with a lot of countries, so its not easy.
     
  14. bruinsrme macrumors 601

    bruinsrme

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    #14
    Apparently they paid their share. Should google be punished because they did their homework, followed the law, and paid what they owed?

    Deficit? Is this googles fault?

    Google is paying their share of taxes. Now if the IRS sees otherwise well, google will have to pay the piper.

    Until then, good for google.
    If they broke the law shame on them.
     
  15. OutThere macrumors 603

    OutThere

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    #15
    While they may not have broken an explicit law, they clearly and willfully tossed their money around between countries to get out of taxes they knew they should owe. That's despicable.
     
  16. bruinsrme macrumors 601

    bruinsrme

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    #16
    Every single company with a mexical factory is doing that.
    Google isn't doing anything that other companies are doing.

    How many companies have their "head quarters" in Delaware?
    Favorable tax breaks.
    Trucking companies tend to pick states that have low registration and taxes to register their trucks.
    Cruise liners operating out of US port that are not registered in the US.
     
  17. Rodimus Prime macrumors G4

    Rodimus Prime

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    #17
    Yep I worked for a company that was incorporated in Delaware but does not really do much business outside of Texas and those states that it does do business outside of Texas are still mostly in the south and low and behold touching Texas.
     
  18. NT1440 macrumors G4

    NT1440

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    #18
    My whole point is that we need to end the loopholes that allow this crap to happen. That won't happen however as all of these loopholes are there on purpose.
     
  19. iJohnHenry macrumors P6

    iJohnHenry

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    #19
    Ooooo, what you said!!! ;)
     
  20. MyDesktopBroke macrumors 6502

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    #20
    Good for Google - they're obliged to do this to maximize profits.

    Shame on Congress for letting this stuff happen.

    But according to a lot of Republicans it's the poor that aren't taxed enough.
     
  21. Tomorrow macrumors 604

    Tomorrow

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    #21
    This isn't really all that unusual.

    Many businesses actually distribute their profits at the end of the year in the form of bonuses - letting the individuals pay the taxes on it rather than the company.

    Besides, it's not like they're breaking the law. This isn't all that different from claiming mortgage interest, child care expenses, etc. as deductions in order to reduce your tax liability - it's there for a reason.
     
  22. mactastic macrumors 68040

    mactastic

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    #22
    Exactly. If you're a legal person, man up and pay taxes like a person. And if you break the law, go to jail like a person.
     
  23. LethalWolfe macrumors G3

    LethalWolfe

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    #23
    What never ceases to amaze me is that so many people are against things like social programs because someone can game the system to get a few hundred dollars a month but these same people are seemingly just fine with a company like Google gaming the system to the tune of 10's of billions of dollars.


    Lethal
     
  24. mactastic macrumors 68040

    mactastic

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    #24
    That's one of my big breaks, as a liberal, with typical conservative thought -- the difference in scale of dollars involved in where personal responsibility rubber meets the fiscal solvency road in terms of where we focus our efforts. A welfare queen can only dream of pocketing public tax dollars as effectively as a defense contractor or pharmaceutical giant can. ACORN wishes it had 1% of what American Crossroads is spending this election cycle. That somehow a 3% tax increase on income above $250k is the harbinger of complete socializing of the means of production. Poor families are getting away with not paying a few thousand in income tax versus corporations are getting away with not paying billions upon billions. Yeah, the octomom got some government largess. And meanwhile exxon paid zero taxes.

    The sense of proportion is out of place. IMHO.
     
  25. Eraserhead macrumors G4

    Eraserhead

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    #25
    ^^ Without a worldwide deal what can you really do? If you insist Google pays their taxes in the US what's to stop them moving their headquarters to a tax haven?

    I guess otherwise you could make companies pay taxes on the value of the goods and services made in the US - if you can figure out sensibly what that actually is.
     

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