Apple CEO Tim Cook argued for Corporate Tax Reform on Capitol Hill. The irony of that is a recent report claiming the company is avoiding paying taxes on billions of dollars in profits. The U.S. based software giant is hiding $102 billion in tax havens overseas. This allows the company to pay near zero global tax rate on that money, according to a report from the left leaning, Citizens for Tax Justice.
Cook was to testify on behalf of Apple as part of a Senate Committee hearing targeting companies that move money overseas in an effort to lower their tax bills. Cook told th Washington Post that he plans to ask Congress to lower the corporate tax rate on overseas profits companies bring back home. Large U.S. based multinational companies currently have $1.9 trillion stashed offshore.
Apple wanted to tell the Senate it doesn’t use gimmicks to avoid paying taxes. Like moving intellectual property to tax havens. Apple’s 10K filed with the Securities and Exchange Commission shows that Apple would pay a U.S. tax rate of 34.5% if it brought its offshore profits back to the U.S. Because the U.S. tax code gives companies credit for paying taxes abroad. This 34.5% figure is proof that Apple is not paying very much in taxes to other countries, according to the CTJ.
Cook defended Apples use of tax havens , saying that Apple pays all of the taxes they owe and not only do they comply with tax laws, but comply also with the spirit of the laws. Senator Carl Levin said that Apple wants people to focus on the U.S. taxes the company paid, not on the issue of the billions they have not paid. He also said Appke employs offshore tax strategies whose purpose is tax avoidance. He also said that Apple used loopholes to avoid paying $9 billion in U.S. taxes in 2012.
The hearing was called to air accusations that Apple has created a web of offshore entities to avoid paying U.S. taxes. Other large companies do so as well but Apple was the focus og the Senate probe. Apple denied any wrongdoing and said the company was one of the U.S. highest tax payers, paying $6 billion last year. Cook wants to simplify the U.S. corporate tax code so it would allow capital to flow back to the U.S., knowing full well Apple may pay more in taxes.
Senator John Mccain said that Apple avoided paying taxes on $44 billion in income, saying they are one of tge biggest tax avoiders in tge U.S. Senator Rand Paul said that Apple was dealing with an awful tax code. President Obama has long argued that the tax code is tilted against companies that want to create jobs in America, while rewarding companies for shipping jobs and profits overseas. There seems to be a fracture in the Republican party, which has been showing more recently. While Democrats lauded praise upon Senator Levin for his statements. Get thectax avoiders and we begin closing Our national deficit. If not nothing will change and the gridlock will become bankruptcy.