Thursday May 05, 2016

Cupertino's Mayor: Apple 'Abuses Us' By Not Paying Taxes

You kinda have to feel bad for this guy. He's the mayor of Cupertino and, in the short time he has held office, Apple's security blocked him from entering its headquarters, he couldn't get a single "yes" vote from city council members against Apple and no one would attend his protest. The flip side of the coin is that the tax Apple currently pays is 18% of the city’s general fund budget.

Apple pays a 2.3% effective tax rate on its $181bn in cash held offshore, according to Citizens for Tax Justice, a not-for-profit research group focusing on tax policy. Through a series of well-documented offshore manipulations with saucy-sounding names such as the Double Irish with a Dutch Sandwich, the industry giants shield themselves off from the theoretically 35% federal corporate tax rate. Citizens for Tax Justice estimates that Apple would owe $59.2bn in US taxes if the money weren’t funneled into offshore shell accounts.

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