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U.s. senator 'livid' about apple's u.s. tax dealings - China Hot Runner Injection Mold by fdhjkl rfghjtkl

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U.s. senator 'livid' about apple's u.s. tax dealings - China Hot Runner Injection Mold by
Article Posted: 08/11/2013
Article Views: 45
Articles Written: 2148
Word Count: 516
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U.s. senator 'livid' about apple's u.s. tax dealings - China Hot Runner Injection Mold

Business,Business News,Business Opportunities
When asked about Apple's supposed "sidestepping" of U.S. tax laws,Senator Tom Colburn (R-Okla.) said that he was "livid about that"and used the company as an example of why the country needs taxreform. During a Tuesday interview on MSNBC's "Morning Joe," Sen. Coburn aired his feelings regarding Apple's use of offshore holdings to avoidpaying high tax rates in countries like the U.S. and England,reports Business Insider.

The senator said that he was "livid" about the situation, referringto a New York Times piece that claims Apple uses various tax loopholes to save billions of dollars eachyear. "Why should Apple pay at 10 percent and some other company thatcan't export their technology ... why are they paying 35 percent?"Sen. Coburn said.

According to the Times report, the iPad maker pays a tax rate of only 9.8 percent, thoughsome have questioned the calculations quoted in the piece sayingthat the results are based on incorrect data. Forbes claims that the Times "compared the profits in 2011 not with the taxes paid on profitsfrom 2011. It has compared profits in 2011 with the taxescalculated on the basis of 2010′s profits." Also critical of the calculations was Fox Business which said "the Times likely used a lower effective rate for Apple versuswhat the rate really is, which makes the story sound more shockingthan it is." In any case, Sen. Coburn used the opportunity to discuss thecurrent tax code situation in America and alludes to a possibleprobe into the matter noting that he sent a letter to Sen. CarlLevin (D-Mich.) saying "we've gotta look at this." While Coburn agrees that there should be incentives formulti-national corporations like Apple to invest worldwide profitsin domestic enterprise, he wants to close so-called "loopholes" inthe current tax code that allow for tax havens.

He mentions Apple'suse of its Ireland headquarters and a Caribbean-based offshoot toshelter the company from high tax rates. Morning Joe co-host Mika Brzezinski asked specifically about arepatriation holiday in which large companies can bring capitalback into the U.S. with a lower tax rate in return for certaininvestment promises like job creation, an event that occurred in2004 with little effect. In response, Sen. Coburn said that hewould support such an initiative as long as stricter controls areplaced on money movement.

"You can't just do that, you gotta reform the tax code," Sen.Coburn said. "If [the U.S. doesn't] reform [its] corporate taxcode e're in a global economy, we're not competetive now, we nowhave the highest corporate tax in the world and only those thathave intellectual property that can move the location of thatintellectual property offshore can get [tax rates] down." Sen. Coburn goes on to say that the U.S. needs to rid its tax codeof loopholes that allow the "well endowed" to avoid high rates.

"Let's clean it out," Sen. Coburn said. "Let's make it transparent.And let's make it fair.".

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