US Blaming Little Ireland For Their Idiocy!

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Good heavens.  Shooting the messenger is such a time honored tradition in the US that we’re now even attacking small nations over our depredation of US companies.

The US has the highest corporate tax rate in the developed world.  For some reason, some of our senators don’t understand why our companies wish to avoid paying these onerous taxes. 

Recently, they’ve decided to go after our tech industry, which I find fascinatingly stupid.  We have companies and politicians alike, whining, moaning, complaining that we’re not keeping up in the tech world.  That we need to import more tech savvy people. 

For our leftist people who may not understand this, I’ll briefly explain what’s happening.  As stated above, the US taxes corporations at the highest level in the developed world.  In fact, there’s only one other nation with a higher corporate tax.  Many companies create foreign divisions called subsidiaries which manufacture, and run the business for sales to foreign entities.  Now, where would you put these places?  In the US with the highest tax rates?  Or, in some other nation with lower tax rates?  I know, it’s a tricky question. 

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So now, some of our members of congress have realized that when incorporated in other nations, they pay lower tax rates than what they would in the US.  Shocking, I know.  The latest round of hating other nations for lower corporate tax rates has targeted Apple, who has set shops up in Ireland.  Now read this.  It’s pretty funny

The main subsidiary, a holding company that includes Apple’s retail stores throughout Europe, has not paid any corporate income tax in the last five years, the report said.

Apple’s arrangement has allowed it to pay just 1.9 percent tax on its $37 billion in overseas profits in 2012, despite the fact that the average tax rate in the countries of the Organisation for Economic Co-operation and Development (OECD), its main markets, was 24 percent in 2012.

Well now, which is it?  No corporate tax, or 3/4 of a $billion?  Is it “not any” or just a low amount?

The report said “Ireland has essentially functioned as a tax haven for Apple”.

Gilmore said Ireland was pursuing the issue of international tax avoidance “very strongly” at the European Union and the OECD, which is spearheading initiatives.  The issue will be discussed at a meeting of European Union officials on Tuesday, he said.

The Senate report said a subsidiary with a mailing address in Cork, Ireland’s second-largest city, received $29.9 billion in dividends from lower-tiered offshore affiliates from 2009 to 2012, comprising 30 percent of Apple’s global net profits.

It said it exploited a difference between Irish and U.S. tax residency rules.

Well, then it must be Ireland’s fault, right?  I mean, how come they can’t be enlightened like we are?  It’s hilarious, the people off of Ireland’s streets understand this better than our highly educated congressmen………

Unemployed Cork local Tom Falvey, 55, who got 10 weeks’ work attaching cladding to the exterior of Apple’s three-storey headquarters in the early 1990s, said Ireland’s jobless would pay the price for any rise in taxes.

“The companies will just say ‘take a jump’ and move somewhere else more obliging. Our unemployment is high enough as it is,” he said, as he walked his dog past the sprawling complex 5 kilometers (3 miles) from the city center.

You see, businesses provide jobs.  Corporations also provide some incredible investment money.  The more money available, the more investment in higher technology, in this case.  There’s also that silly dividend and stock prices for people’s retirement.  Jobs, investments, retirement security, who needs them?  We want to make sure Apple pays the taxes we believe is reasonable, even if the taxes are paid elsewhere!  By golly!  Now, check this next observation from the article……

Apple said last year it would add 500 more people to its Cork workforce of 2,800.

Ireland’s pro-business tax structures have attracted U.S. multinationals including Google, Microsoft and Facebook, big employers who have helped offset an unemployment rate stuck above 14 percent, but its low corporate tax rate of 12.5 percent has drawn criticism elsewhere in Europe.

The US has created an environment hostile to corporations……. except for the favored ones who get tax exemptions, such as GE.  Now, we’re targeting our successful tech industry because they responded appropriately to our onerous tax policies.  And, we’re mad at Ireland for not wishing to engage in such depredation.  Makes sense to me.  Or, we could note that Apple is hiring in Ireland and……… nah, that would make sense.  Let’s just destroy another successful industry here, instead. 

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9 Responses to US Blaming Little Ireland For Their Idiocy!

  1. philjourdan says:

    They will destroy it. Just as they have destroyed the auto industry. Some may argue that is not their goal. But that is their ends.

  2. DirkH says:

    Governments are in competition for companies; this drives down their profits. So they try to form cartels or even one world governments and stamp out the upstarts or small cost efficient competitors by force. Germany is no different with our bullying of Cyprus or now Swiss and Luxembourg.

    This bullying is also used as a constant deflection, deflecting attention from the lack of performance of ones own government. Fill the news channel with verbal attacks on a different nation. I never hear about a cost breakdown of our own government or its relative performance or its historic performance increases in the news; it would be amusing. Complete lack of interest by our journalists shows them as the worthless shills they are.

  3. leftinbrooklyn says:

    It’s gotta be the disconnect from not feeling in control that causes these politicians to be unable to understand this. Business friendly environment that leads to more employment, income, & spending, and thus more tax revenue, doesn’t somehow satisfy the controlling need that direct excessive tax on business does.

  4. Bruce says:

    Apple says they have paid all the tax they are legally liable for. I suspect this is true.

    The US wants Apple to pay more tax.

    The one thing I can say about this is I am absolutely completely certain that Apple is more capable of spending that money in a useful and morally decent way than the IRS and the Obama Administration could.

    Ms Lerner intends to take the 5th in Congressional testimony, which says she has incriminated herself with her actions and fears being caught in such by her own testimony. QED.

    I think because of the IRS scandal the Apple thing will quietly fizzle, because Obama is so scared of the danger that he won’t want tax and the IRS in the news longer than he can help. If there is one thing which clicks with ordinary voters it is fear of the iRS and what it could do to them.

    • suyts says:

      Lerner is my next post!

    • PhilJourdan says:

      “The one thing I can say about this is I am absolutely completely certain that Apple is more capable of spending that money in a useful and morally decent way than the IRS and the Obama Administration could.” – You are absolutely correct.

      Also what “obama wants” is irrelevant. There is not even a moral imperative for any one or any company to pay more in taxes than they are legally obligated to, UNLESS they preach the tax rates are too low. Which surprisingly those who proclaim it never do volunteer to pay more (they do not even donate to charity).

  5. tckev says:

    We’re hungry, let’s eat the goose that lays golden eggs.

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