Apple Paid $6 Billion in Federal Income Tax in 2012, 1/40 of All U.S. Corporate Income Tax Collected

[Rodimus Prime]

Are you saying companies like intel, apple, exxon, texas instruments, raytheon are not creating jobs on US soil?

as I and other pointed out jobs were lost in the end because of the last tax holiday and more money and resources were shifted over seas. Over 90% of the money brought home was not used for what it was promised. So yeah not worth trusting them. The point is the money from over seas is not going to make more jobs. If anything giving them the tax holiday will cost us jobs and rewards them screwing over the american public from last time.

 

[WestonHarvey1]

The word you may be looking for is "reverting".

So, reverting to what they were before some point in time - and does that mean they're going down, up, or staying the same from where they are right now? You can only pick one.

 

[rdowns]

So, reverting to what they were before some point in time - and does that mean they're going down, up, or staying the same from where they are right now? You can only pick one.

The payroll tax reverted to what it was before the TEMPORARY cut was put in place in 2010. Obama wanted it extended but the Republicans did not.

 

[Eraserhead]

This is a HUGE problem worldwide, since "offshore financial centers" end up robbing local banks of assets

So get rid of the offshore financial centres...

That would kind of defeat the purpose of doing a dividend (which is to return capital).

The point is that Apple sells shares in London or Hong Kong, and then goes and buys shares back in the US.

I'm not sure how much tax they'd have to pay as that would be capital they'd be transferring.

 

[winston1236]

A good idea except corporations are given the rights of an individual. They should therefore pay taxes as such.

Another msnbc talking point...i bet you cant even define accurately what 'advantages' you think that designation provides.

 

[clibinarius]

It is astounding that Apple pays 1/40 (2.5%) of ALL corporate taxes collected nationwide. Their revenues are not as high as some corporations, but because they have high margins, they have high taxable income.

It is right and proper that divisions located in foreign countries not also pay tax here. Them's the rules. In fact if Apple were to be so bold as to bring money back to the US, they would be taxed AGAIN according to current law and contrary to every other major country. If anything they should relocate their HQ to shut people up. But they are "patriotic".

As for Nevada, that does not avoid federal income tax, only state income tax.

Our country is vastly overtaxed (18% of GDP) and overspends (25% of GDP) which sucks oxygen out of the free market directly and by diverting investment capital (18%-25%=-7%) to government bonds to finance the debt. If that was not happening those investors would have to chase commercial paper (or infrastructure bonds!) which would help every company in the US who wants to expand and hire. The reverse is at play now.

I sincerely believe this post is on topic. That is my intention.

Rocketman

If you think 18% of GDP is overtaxed, I would state, clearly you haven't been to Northern Europe, where the big problems other countries wrecking their trade routes because they overspent and undertaxed.

I'm paying a ton of money in tax. But, I feel undertaxed. Why? Because I have no interest in my investments and thus can't keep up with inflation. If raising the taxes back to where they were in the 50s would solve the problem-you know, when they were MUCH higher-then so be it. I'd like to move on with my life than paying for unsustainable tax cuts (less than half of what they were under Ike), and huge spending for Baby Boomers. Its not the tax problem that's killing jobs at all anymore-taxes are lower than they've been since WWII. Its the uncertaincy that no one willing to do anything to raise taxes or cut spending is doing-no one knows their long term plans anymore.

 

[Eraserhead]

If you think 18% of GDP is overtaxed, I would state, clearly you haven't been to Northern Europe,

What do you mean by "Northern Europe"?

 

[WestonHarvey1]

The payroll tax reverted to what it was before the TEMPORARY cut was put in place in 2010. Obama wanted it extended but the Republicans did not.

Image

So how do you implement a "temporary tax cut"? You schedule a decrease (taxes go down) followed by a tax increase (taxes go up). Taxes are going up. Math is math. All the talk of "temporary" tax cuts is just a rhetorical trick.

 

[Rocketman]

If you think 18% of GDP is overtaxed, I would state, clearly you haven't been to Northern Europe, where the big problems other countries wrecking their trade routes because they overspent and undertaxed.

Nope. Just overspent. Solution: off-budget fully funded pensions and health plans. The average of taxation in the USA over the last 100 years or so is 18.5% with all ranges of tax "rates".

Governments spend the funds set aside for pensions and health plans. Stupid. I think Pomona College alone has a $4B endowment fund. Tiny private college. They invest in infrastructure and safety net programs. With cash. From the interest.

 

[skunk]

So how do you implement a "temporary tax cut"? You schedule a decrease (taxes go down) followed by a tax increase (taxes go up). Taxes are going up. Math is math. All the talk of "temporary" tax cuts is just a rhetorical trick.

You seem to have great difficulty with the word "temporary".

 

[Rocketman]

You seem to have great difficulty with the word "temporary".

Congress, particularly the House, can do anything it wants. No limits. Has anybody yet noted that Apples tax rate went up to 39.6% plus an additional Obamacare 3.6% fee, increasing their gross income tax rate to about 43.2%? Yet? That's higher than their very high profit margin! They work for the government!

Russia's 13% is lookin' pretty good now, eh?

 

[samiwas]

So how do you implement a "temporary tax cut"? You schedule a decrease (taxes go down) followed by a tax increase (taxes go up). Taxes are going up. Math is math. All the talk of "temporary" tax cuts is just a rhetorical trick.

Is this kind of how most stores jack prices up on the Saturday after Thanksgiving? You know, because they were very low on Friday, so the only conclusion is that they raised them on Saturday?

 

[Rodimus Prime]

Congress, particularly the House, can do anything it wants. No limits. Has anybody yet noted that Apples tax rate went up to 39.6% plus an additional Obamacare 3.6% fee, increasing their gross income tax rate to about 43.2%? Yet? That's higher than their very high profit margin! They work for the government!

Russia's 13% is lookin' pretty good now, eh?

ummm they tax them on the profit not revenue........ there is a big differents between profit and revenue and taxes is only on profit.

 

[Rocketman]

ummm they tax them on the profit not revenue........ there is a big differents between profit and revenue and taxes is only on profit.

Okay 43.2% (tax rate) of 40.5% (profit margin) = 17.5% of gross.

Or put an entirely different way, they do a bunch of research, engineering, production, construction, marketing, supply chain management, customization, service, returns and warranty, and eco-disposal and earn about 40%. The government sits there and whines and gets 43% of that leaving 57%. I wonder if they have incentive to do that in Russia with a 13% rate and take all expenses and deductions in the USA so they have a NOL 3 years out of 5?



Russia charges 13% of net and USA charges 17.5% of gross. We are "better" at it. Charging.

 

[Rodimus Prime]

Okay 43.2% (tax rate) of 40.5% (profit margin) = 17.5% of gross.

Or put an entirely different way, they do a bunch of research, engineering, production, construction, marketing, supply chain management, customization, service, returns and warranty, and eco-disposal and earn about 40%. The government sits there and whines and gets 43% of that leaving 57%. I wonder if they have incentive to do that in Russia with a 13% rate and take all expenses and deductions in the USA so they have a NOL 3 years out of 5?



Russia charges 13% of net and USA charges 17.5% of gross. We are "better" at it. Charging.

Cry me a river with Apple making a rather insane profit margin. Most companies make a much much smaller profit margin. Software companies average margin for example is 25% and corporate tax rate in the us is progressive like income tax.

So yet again cry me a river. Also do the numbers on apple money they paid like 3-4% tax rate. That is a far cry from the 43%. International companies cheat a lot more.

 

[Rocketman]

Apple making a rather insane profit margin.

Accomplishing, earning, hitting the ball out of the park. You know, private enterprise.

Now jurisdiction shop!

 

[Rodimus Prime]

Accomplishing, earning, hitting the ball out of the park. You know, private enterprise.

Now jurisdiction shop!

but Apple can be used as a prime example how lowering corprate taxes is not going to lower prices for the rest of us. All it will do is increase their profit margins and only the higher ups benefit from that. The line workers not so much.
It case and point they will push profit margins as high as they can get away with it so all lowering taxes will do is increase the profit margins and not lower prices.

 

[Chupa Chupa]

What do you think would happen if corporate tax went away?

1. Corporations will lower their service costs
2. Pocket it all for Upper Mgmt bonuses

Even if they did the latter upper management has to pay personal tax on it, so fail to see your point. The U.S. has the highest corporate tax rate in the world. World! Also even if they didn't do #1 doesn't mean they wouldn't put the money into product development or other areas to grow the business. It's not a #1 or #2 choice. Business isn't as simplistic as some make it to be.

 

[Rocketman]

but Apple can be used as a prime example how lowering corprate taxes is not going to lower prices for the rest of us. All it will do is increase their profit margins and only the higher ups benefit from that. The line workers not so much.
It case and point they will push profit margins as high as they can get away with it so all lowering taxes will do is increase the profit margins and not lower prices.

Stop changing the subject over and over and arguing against straw men!

 

[Geckotek]

Besides the ridiculousness of our courts giving corporations rights of individuals, the problem is any business is a middleman in a tax equation. The final destination for the money should be the target of profit and income based taxes not intermediate steps.

I propose that money circulates and the concept of a destination is imaginary. In fact, there are many destinations as money moves around and all money is taxed far more than double. So the argument doesn't really make sense.

 

[Eraserhead]

Even if they did the latter upper management has to pay personal tax on it

It depends how they get paid - they might well not pay very much tax on it if its paid out as a dividend.

 

[ILikeTurtles]

I dreamt of a world where everyone made enough money to live comfortably and had everything they needed.

And then human nature took over, and no one had anything - except those with the biggest guns.

This is the biggest lie/folly of the modern democratic party. That those who make more should pay more (i.e. bring their net worth/income closer to the median) so those who either don't make much money/can't/won't work can pay less and see their net worth/income rise to the median.

I hate to break it to you.....but socialism has been tried and always leads to the same outcome - the top earners realize they could make just as much without working, ambition is sucked out of society, and a dictator moves in to take the country's riches - it's called communism.

Obviously this wouldn't happen tomorrow - but its a slippery slope. Today we're "Making the rich pay just a little bit more so the poor have a fair shot" (as if the person making this statement has any business saying what is fair). Next we see "Well we (the govt) still needs more money so those rich people need to pay a little more - they still make more than most"....

I think you see where I'm taking this.

You are absolutely ridiculous. Here, let me make you some tea.

 

[skunk]

You are absolutely ridiculous. Here, let me make you some tea.

If this response were not so spot on, I would feel obliged to report it.

 

[jrswizzle]

You are absolutely ridiculous. Here, let me make you some tea.

Lol - thanks. Tea is my favorite.

 

[tbrinkma]

Put in a tax credit for the necessities based on your income level.

That doesn't actually change what the math I provided demonstrates. Sales-taxes (and flat taxes in general) are extremely regressive. They put the heaviest tax burden on those *least* able to shoulder it.