Well let's see...
35 million MBP sold over the next 3 years at the new $400 price hike = $14 billion.
Perfect.
35 million MBP sold over the next 3 years at the new $400 price hike = $14 billion.
Perfect.
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Ireland to Formally Appeal $14 Billion Apple Tax Ruling This Week
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But "starving the beast" doesn't work. Our country has been cutting taxes for decades and all we have to show for it is a deficit.
Exactly, and IF it is deemed that Ireland are €14B short they either have to collect it from Apple or collect from their taxpayers, (where ever they may be). I wonder then how many in favour of Apple getting off will change their minds.
Low tax rates will not solve the problem. If it is true Ireland gave apple less than 1% tax....how can any country compete? There will always be a race to the bottom.
The US, "us", has to maintain all the infrastructure, courts, etc for Apple to use. While Ireland does not have that expense and get's the tax revenue.
The EU is saying that EU law has been broken. It's not an approach but a judgement. Good luck to Apple and Ireland trying to turn that decision around with all the rest of the EU countries, which were unfairly disadvantaged by this tax dodge and are outraged, looking on...
Yes the government has to maintain some stuff, they also waste a ******** of money and spend on money on stuff they shouldn't. Anyway, I know I am talking to a left wing group and there won't be any persuading here. Just stated my opinion.
Right, but focusing on transfer pricing as relating to "state aid" has no prior precedent in the EU. There aren't any past decisions that used transfer pricing in that area, so one of the problems with their case is trying to retroactively collect money based on something that was not settled law.
Fair point. but it doesn't really matter whether there is precedent around transfer pricing or not as the EU doesn't really care whether the state aid was given in the form of cash, credits, tax relief or whatever. The EU's case isn't that Ireland enabled Apple to unfairly leverage transfer pricing rules, the issue it investigated was whether Ireland had provided selective assistance that resulted in economic distortion or unfair advantage.
Corporations do not pay taxes, they merely disburse their tax liabilities across their organization whether it the form of lower pay to workers, higher prices for goods/services, decreased investment, etc.
And companies, and people, also spend money on stuff they "shouldn't". What's your point?
Gov't has to serve a wide base of people, something YOU want I may not, but that's just the way it goes. At least it did back when it functioned, give and take.
I agree but lowering taxes is not the answer. What companies do then is hoard money. Look at Apple. Why would anyone or thing need that much cash?
Pressure needs to be put on countries like Ireland that think a race to the bottom for corporate tax rates is a good idea. Regan economics does not work.
Right, but that's not a bad thing. It can help with assessing the "true" cost of something. Like pollution.... for example taxing a polluting industry more than green industry.
It's not a question of what they need. Reagan economics works better than Obamanomics.
Assuming the rate is correct but 1% is a far cry from overtaxing. Only GE has the capabilities to beat that haha
No problem, the lack of an answer is all the answer I need. Why you couldn’t just answer yes or no I don't know. (Yes I do).
Never said 1% of overtaxing....but what the EU wants and what the US government wants to tax (unless you are GE or Solyndra) is.
This is how taxes should work.
1. Figure out what services Gov't provides and the cost for it.
2. Set up a simple, progressive tax bracketing system that brings in that amount of money. If possible a small surplus for a rainy day fund.
Trying to tackle the problem from a tax first perspective is stupid without taking into account what you need to pay for.
This is probaly something for a different topic, but "shareholders first" is a toxic mentality. They should be 3-4 down the list of people to cater to.
1. Figure out what services Gov't provides and the cost for it.
2. Set up a simple, progressive tax bracketing system that brings in that amount of money. If possible a small surplus for a rainy day fund.
Trying to tackle the problem from a tax first perspective is stupid without taking into account what you need to pay for.
This is probaly something for a different topic, but "shareholders first" is a toxic mentality. They should be 3-4 down the list of people to cater to.
Given the tax rate in Ireland for companies is 12.5% they pay a lower rate of tax than most individuals.
Their integrity?? What integrity?? It's a country that joined the EU and even the Euro, and had to sign up to and agree to the rules and laws and regulations that go along with that, in turn it has received billions in aid from the rest of Europe and taxed its own people at its going rate whilst in turn letting the richest corporations on the planet, richer then other entire countries, in effect launder money through them and letting them off billions in tax...
Not much integrity there and a complete and clear breach or EU laws it singed up to, Ireland and Apple will have to pay up or face the wrath of the EU beuracacy.
They don't need to collect it from their taxpayers. The EU will give Ireland 14B less.
Simply stated.
A company is OBLIGED to the shareholders (and others) to pay the least amount of taxes legally possible.
Ireland (and the Netherlands) give these opportunities, and these countries gain lots of advantages doing that.
Now, enter European Union.
The EU think / feel that there are missing taxes, because EU laws seem to forbid the before mentioned opportunities.
What will happen?
Apple and Ireland get penalised, and Apple feel forced to leave Hollyhill?
Good for the US?
Good for the Brexit?
A company is OBLIGED to the shareholders (and others) to pay the least amount of taxes legally possible.
Ireland (and the Netherlands) give these opportunities, and these countries gain lots of advantages doing that.
Now, enter European Union.
The EU think / feel that there are missing taxes, because EU laws seem to forbid the before mentioned opportunities.
What will happen?
Apple and Ireland get penalised, and Apple feel forced to leave Hollyhill?
Good for the US?
Good for the Brexit?
Your example needs to have an added situation.
Say you are looking to rent a house and a landlord comes along asking you to rent from him, if you are bringing jobs to the neighborhood, which makes everything around it prosper. House values go up, you may even employ more people, etc.
You rent the house that you employ all these people in, because the landlord instead of the going rate of $ 1,500 a month offers it for $ 750. The landlord then gets taxed on the $ 750 of rental income.
You move in for $ 750. You pay the employees and the payroll taxes.
Years later the city tells the landlord: Hey, by renting for only $ 750, which is way under what the houses rent for in this neighborhood you are avoiding paying taxes on $ 1,500.
Pay up for the difference. Then the country joins and says the city did not have the right to offer the house under market value.
You rented the place knowing $ 750 was a good deal and had an agreement with the landlord.
So, why would I have to deal with the city now, when I legally rented the place, bringing jobs and did nothing wrong, but taking advantage of the landlords offer?