Apple Inc. CEO Tim Cook appeared before a bi-partisan panel of congress to talk about the tax planning strategies of Apple, one of the greatest companies of our time, or any time for that matter. Apple employs thousands of people and has changed the life of millions of folks worldwide with its wide variety of products used for both personal and business.
But Apple is also a “tax dodger,” despite the fact that Mr. Cook claims that Apple paid over 6 billion in taxes in 2012, the largest amount for any domestic Corporation. While 6 billion seems like a large amount of money, it could be more if they were not able to stash 100 billion + in countries like Ireland and negotiate a ridiculously low tax rate of 2% in the process. Apple, of course, is not alone in doing this, and there are many high priced lawyers and CPA’s whose goal is to facilitate this process.
This Corporate strategy is similar to what former presidential candidate Mitt Romney does with much of his investments. Mr. Romney stashes his money in overseas banks and shelters it from domestic tax, and also pays tax on his investment income at the ridiculously low rate of 15%. This low tax rate is referred to as the carried interest rule, and this rule also needs to be reformed.
Apple and Romney have done nothing wrong, as far as I know. But the divide in America is worsening by the day, and the rich are getting richer and the poor are getting poorer. The same holds true for corporations, and if corporations are to be treated like people (as many feel they should) than they should pay tax like people too. Over 25% of American Corporations pay no tax, and this is just not fair.
(Source cnn money)
Win Damon and I discuss Corporate tax reform on FM 106.1 WNBP and wnbp.com