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.
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.