In the latest example of the Laffer Curve we see that 0% of $60 billion is less than [some number > 0]% of $60 billion.
See, Apple doesn’t think that having to pay the world’s highest corporate income tax is in the best interests of the company. Or the shareholders. So it’s not going to pay the tax.
Apple made an aggressive pitch for a corporate tax holiday Monday, stressing that it plans to keep more than $60 billion parked offshore until Congress makes it easier for companies to bring those profits home.
“Repatriating the cash from offshore would result in significant tax consequences under current U.S. law,” Apple Chief Financial Officer Peter Oppenheimer said on a conference call.
Now, many good and right thinking liberals would say that Apple is not paying “its fair share.” After all, that money is profit and Apple has a responsibility to pay taxes on profits. Perhaps BUT, Apple has already paid taxes on those profits in the country where they earned them.
True, the United States is offering multi-nationals a tax break in the form of a deduction. In other words, Apple could deduct from its profits the amount of foreign taxes it paid. In other words, this:
If Apple earned $100 in Elbonia and Elbonia charged a modest 15% corporate tax rate, Apple would take that $100, pay $15 and be left with $85. Now, if Apple wants to bring back that money it earned in Elbonia, it would have to pay an American tax of 35% minus the deduction: [$100-$15=$85*35% = $29.75].
If you’re keeping up with the math that leaves Apple with $55.25 of the original $100.00. Pure nonsense.
Reduce taxes. Increase revenues.