Apple’s secret to record profits? Not paying taxes. Yet the IRS is worried about the Tea Party?
We keep talking about how Apple doesn’t pay any taxes in the United States. Now it doesn’t want to pay taxes on the money it doesn’t even report to the IRS. It wants what is called a “Tax Holiday.” This way it can bring the billions in the Cayman Islands back to America. Looks like that money already had a holiday. The government is broke and yet it’s providing tax breaks to the most profitable company on the planet. Washington needs to get its head examined right after it examines Apple’s books. If Apple CEO Tim Cook doesn’t want to pay taxes then he should treat himself like a job and move overseas.
From the Guardian…
Companies had a tax holiday once before, in 2004, when a set of major corporations were allowed to bring back their overseas profits at a tax rate of only 5.25%. You might imagine that it resulted in an enormous economic boost, but here’s what happened instead, in the words of Treasury official Michael Mundaca:”There is no evidence that it increased US investment or jobs, and it cost taxpayers billions … the nonpartisan Congressional Research Service reports that most of the largest beneficiaries of the holiday actually cut jobs in 2005-06 – despite overall economy-wide job growth in those years – and many used the repatriated funds simply to repurchase stock or pay dividends.”
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