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How Apple Minimizes its Corporate Tax Burden
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I would highly encourage people that haven't taken courses in finance, economics, and accounting to do some heavy reading. These subjects go a long way to explaining how taxes affect companies and consumers (in terms of pricing & volume), taxes are accounted for, and how companies use their capital (and how invested capital plays a positive role in our economy).
It is perfectly understandable to be mad that there are mechanisms to minimize taxes, but Apple is working to maximize profits just as publicly traded companies are designed to do.
It is perfectly understandable to be mad that there are mechanisms to minimize taxes, but Apple is working to maximize profits just as publicly traded companies are designed to do.
Apple had to respond to new revelations. Among other ridiculous things they claim: "Apple has conducted all of its business with the highest of ethical standards, complying with applicable laws and accounting rules. We are incredibly proud of all of Apple's contributions."
Are they trying to be cute or something? They would better shut up about being
ethical.
Are they trying to be cute or something? They would better shut up about being
ethical.
B.S. University of Central Florida
M.S. University of Cincinnati
J.D. Nova Southeastern
Keynesian economics is flawed, has always been flawed, and is currently destroying western economies. Heck look around you. And how do I know this? I keep making money betting against your stupid ideology. The crescendo is coming though, watch for that bond market to explode, and watch for the collapse in the dollar. Something I doubt your moronic professor from Harvard will ever teach. Like I said I could give two sh*$% about your belief structure, all I care about is surviving what's coming and making money (capitalism). Nothing lasts forever, your seeing the beginning of the end for this nation. But don't take my word for it, by all means keep listening to the sheeple, you'll see how far that gets you in life.
I agree, that in the end the populace has to share the blame but just putting new people into the same system is unlikely to change much. Rather propose and campaign for concrete changes to the system, ie, the laws. But this is a lot of work as their is not just one single law that would need to be changed, there are lots of laws and any change has to be carefully considered to not overlook any unintended consequences. Not something that can even remotely done on an internet forum.
There is almost never a simple answer to complex problems but the only to way to solve them is to start working on the nitty-gritty. No grandstanding will solve them.
There's always Ireland, Switerland, even Canada who have lower overall tax rates on corporations. Companies don't have to be based here.
The US is unusual in that it actually DOES tax worldwide income, including that of corporations. The difference for corporations is that overseas income isn't taxed until it is brought back to the US. That's partly why lots of companies, including Apple, have billions of dollars invested overseas that they don't want to bring back to the US. The tax code discourages it. If we subjected all that income to immediate taxation, you can bet that virtually overnight, US domiciled companies would disappear. Apple earns most of its money overseas, remember.
Don't put words in my mouth. Plenty of people I know would support my statement. How many people do you know would support the free for all that you're proposing, where those with more money get to dictate how those with less money are taxed?
Great idea. But what happens when a company pays their CEO a $1 salary, and provides 100% benifits, including a company car, house, and yacht. The state makes some property tax, and that's about it.
Good for Apple and the Rest of Us
If you don't know taxes are an expense to any company, expenses are factored into the sale price of all produces. So the less taxes Apple pays the cheaper their products are and the less we pay as consumers. We would all benefit from a lower corporate tax rate. Because ultimately the taxes are paid by the customers. Taxes are part of the cost of doing business and drive prices up.
If you as a corporation sell a widget that cost you $10 to produce and the taxes you pay as a corporation averages to $2 per widget then if you sell it for $11 dollars you go out of business, for $12 your break even meaning you quit doing business and at $13 you make a profit.
Common sense says it is good apple is minimizing their tax burden to help their customers.
THANK YOU APPLE!!
If you don't know taxes are an expense to any company, expenses are factored into the sale price of all produces. So the less taxes Apple pays the cheaper their products are and the less we pay as consumers. We would all benefit from a lower corporate tax rate. Because ultimately the taxes are paid by the customers. Taxes are part of the cost of doing business and drive prices up.
If you as a corporation sell a widget that cost you $10 to produce and the taxes you pay as a corporation averages to $2 per widget then if you sell it for $11 dollars you go out of business, for $12 your break even meaning you quit doing business and at $13 you make a profit.
Common sense says it is good apple is minimizing their tax burden to help their customers.
THANK YOU APPLE!!
Why did you stop at Canada? How about Uganda, Somalia etc.? Those probably do not have any taxes. The funny thing is that even though corporations do sell their products worldwide they still need US to be able to produce the most advanced stuff. I say, the experiment with free trade failed US people, let's get rid of it and then we'll see who can or can not compete.
There is a lot of debate about tax rates and their effects.
Problem is that the neo-Capitalists all consider the Freidman model as Gospel and most of the concepts are false memes.
They have been spouted in this thread a lot:
1) Corporate taxes are just passed on to the consumer.
Proof? In the Friedman supply side models, the invisible hand should easily adjust for a moderate increase in taxes and make the system more efficient just as an added competitor would. Yet the world falls apart for every supply sider if a 1/2 percent tax is suggested. Obviously there is a discrepancy or the model sucks
I am always fascinated by the question whether such a position is due to people actually believing that politicians' salaries make up any meaningful proportion of a government's budget (ie, people being able to ignore basic math) or whether they feel it is morally ok to make very incorrect statements if they serve a larger goal.
You are not a very smart consumer. Apple avoids taxes and pays huge salary to CEO and the top brass and now they started paying to shareholders. You saved $10 on the price of iDevice but had to pay $100 more in your own taxes to cover what Apple managed to hide.
This bit too:
What they don't say is that they have shipped and outsourced the manufacturing jobs overseas to China.
How many Foxconn workers are making Apple hardware?
Having read these books a while back how come I came upon 100 different competing and/or mutually exclusive opinions and theories and nothing conclusive?
My taxes are not high because Apple does not pay as much are some want them to pay in taxes. My taxes are high because politicians want to control my money for me.
-What benefit is there to any of us if Apple pays more in taxes? None. You all already agreed the the politicians will waste the revenue anyway. So why do I want them or anyone to pay higher taxes.
But the Unions also agreed to reduced pensions for their members. Technically, the debt that GM had to the union members (and maybe the union directly) in the form of pension obligations was exchanged for equity, a very common step when a company has too much debt.
Ok
1) I'm stupid
2) My ideology is dumb
3) Elizabeth Warren is moronic
4) You "could give two sh*$% about [my] belief structure" (should be couldn't give two ...)
5) I listen to sheeple
Thanks. You made a lot of assumptions about who I am and what I believe in based on a few comments. I didn't insult you at all, yet you seem very angry towards me. I suggest you examine why you are angry (hint, it's not because of me). Why can't you civilly engage in discourse? Why do you need to personally attack me (and others)? Stop and think before you post. I am really offended by what you wrote. I'm 35, I have a PhD from Columbia, that doesn't mean anything but it means I am far from "stupid", "moronic", etc. I work hard, I pay taxes, I treat others with respect. I would appreciate the same in return.
Thanks.
And people wonder why we have this huge deficit in this country. Mega-Corporations don't want to pay any taxes for the privilege of enjoying the US's protection and economic markets. That leaves the working man to pay it, except he's out of a job because those same corporations don't want to hire US workers either. 
Yes, our government spends too much, but it's hard to get a handle on things when you have sleazy companies and rich people like Mitt Romney that constantly try to get out of paying their fair share. You make more money; you pay more money. It's that simple. But no, leave the burden for the middle class that's disappearing and leave that debt to future generations. It's only business, after all.
Yes, our government spends too much, but it's hard to get a handle on things when you have sleazy companies and rich people like Mitt Romney that constantly try to get out of paying their fair share. You make more money; you pay more money. It's that simple. But no, leave the burden for the middle class that's disappearing and leave that debt to future generations. It's only business, after all.
Speak for yourself, as a European I require apple to be taxed in my country and not Luxembourg under ludicrously low taxes if they are selling a product to me via iTunes. I am sure they have enough money to pay their way in Brussels so this stays as it is, but seeing a whole continent in ressesion and 20% unemployment rates I don't think it should be up to apple to be able to pick and chose where to sell from so they incur the least taxation, instead of being taxed Witt the appropriate taxes at the eu nation state they are selling to.
Son, you need to calm the **** down. You didn't even answer his question, you insulted him. It states a lot about a man's intelligence when they resort to name calling. Seems those "degrees" you claim to have didn't help you with proper diction and vocabulary. You're acting like he threatened your mother. Do you have an I.Q. that matches the level of immaturity and disrespect you have just displayed? You are shooting yourself in the foot if you can't respectfully engage others. He never insulted you, yet your went off.
The us tax system needs to be overhauled. SimPle = better , hey if anyone knows this, Apple does.
Accountants would throw a fit over their job security though...
Accountants would throw a fit over their job security though...
Macrumors reported otherwise:
"Gross margin was 47.4 percent"
https://www.macrumors.com/2012/04/2...-6-billion-profit-on-39-2-billion-in-revenue/