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 Apple paid only 1.9 pct tax on earnings outside US 
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Post Apple paid only 1.9 pct tax on earnings outside US
http://news.yahoo.com/apple-paid-only-1 ... nance.html


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Apple paid only 1.9 pct tax on earnings outside US
By The Associated Press | Associated Press – 21 hrs ago

Apple Inc. paid an income tax rate of only 1.9 percent on its earnings outside the U.S. in its latest fiscal year, a regulatory filing by the company shows.

The world's most valuable company paid $713 million in tax on foreign earnings of $36.8 billion in the fiscal year ended Sept. 29, according to the financial statement filed on Oct. 31. The foreign earnings were up 53 percent from fiscal 2011, when Apple earned $24 billion outside the U.S. and paid income tax of 2.5 percent on it.

The tech giant's foreign tax rate compares with the general U.S. corporate tax rate of 35 percent.

Apple may pay some income taxes on its profit to the country in which it sells its products, but it minimizes them by using various accounting moves to
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shift profits to countries with low tax rates
. For example the strategy known as "Double Irish With a Dutch Sandwich," routes profits through Irish and Dutch subsidiaries and then to the Caribbean.

Other multinational corporations also use such tax techniques, which are legal.

Like other big companies, Apple leaves cash overseas. If it brought it home to the U.S., it would have to pay U.S. corporate taxes on the money. The cash that Apple has left overseas as of Sept. 29 has mounted to a stunning $82.6 billion, up from $74 billion as of June 30.

Where Apple does differ from other companies is that it sets aside a portion of the foreign profits, marking them as subject to U.S. taxes sometime in the future.

When Apple reports quarterly results, it records that portion of the taxes as a liability, which is subtracted from its profits even though it hasn't actually paid the taxes.

Tax experts say the company could easily eliminate these "phantom" tax obligations. That would boost Apple's profits for the past three years by as much $10.5 billion, according to calculations by The Associated Press reported in July.

While investors might rejoice if Apple suddenly added $10.5 billion to its profits, unilaterally erasing a massive U.S. tax obligation could tarnish its reputation as a relatively responsible payer of U.S. taxes. Instead, the company is lobbying to change U.S. law so that it can erase its liabilities in a less conspicuous fashion.

Overall Cupertino, Calif.-based Apple had net income of $41.7 billion, or $44.15 per share, in fiscal 2012. That was up 61 percent from $25.9 billion, or $27.68 per share, in fiscal 2011.


This along with GE paying effectively a ZERO tax rate makes lowering tax rates and closing loopholes look like the way to go.

Go Mitt!!!


November 5th, 2012, 3:23 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
wjb21ndtown wrote:
This along with GE paying effectively a ZERO tax rate makes lowering tax rates and closing loopholes look like the way to go.

Go Mitt!!!


LOL! Cause Mitt and his $250+ million net worth doesn't use loopholes to pay an effective tax rate (14%) than most teachers and policemen I know...

Oh, and what loopholes is he going to close. I just went to www.mittromney.com and can't seem to find any mention of them.

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November 5th, 2012, 3:35 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
Pablo wrote:
wjb21ndtown wrote:
This along with GE paying effectively a ZERO tax rate makes lowering tax rates and closing loopholes look like the way to go.

Go Mitt!!!


LOL! Cause Mitt and his $250+ million net worth doesn't use loopholes to pay an effective tax rate (14%) than most teachers and policemen I know...

Oh, and what loopholes is he going to close. I just went to http://www.mittromney.com and can't seem to find any mention of them.


Pablo, you're being ridiculous.

1) The capital gains rate isn't a "loophole" and it directly benefits the US.

2) If we could at least get these mega corporations to pay 14% we would be better off than the ZERO that they're currently paying.

3) He can't say what loopholes he is going to close. If he did he would lose money from everyone that it was going to effect.

Now, compare his policies on www.mittromney.com with Obama's answer of "well, I plan to grow the economy from the middle out." Hunh? That's not even saying anything!!!

At least Mitt's plan makes the tax code more fair, it makes the tax code more understandable, and it does help bring jobs to the US.

If you want ONE example of a tax code that he wants to change, he ALL personal exemptions (charitable, home mortgage exemption, etc.) to be put into one pool and limited to $35,000. That's HUGE!!! That's a huge break for the middle class, a huge hit to the "1%ers" who buy lavish houses and pay more than $35,000 per year in mortgage interest alone, and a nice offset to LOWERING the tax rate, which will help EVERYONE, including businesses.


November 5th, 2012, 3:40 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
Didn't Mitt say that he was going to work with Congress to identify and close the loop holes, so if he hasn't met with nor worked with Congress, then he can't say what loop holes need to be closed right?

The problem with this is there isn't enough TRANSPARENCY, or ACCOUNTABILITY from Congress to trust them to close loop holes.

Btw, did Congress ever payback the Bankrupt Bank of Congress that was caused by bounced checks? I believe that was a scandal from the 90's, I was just thinking about that the other day. Never did hear one way or the other.

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November 5th, 2012, 3:46 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
wjb21ndtown wrote:
Pablo, you're being ridiculous.

1) The capital gains rate isn't a "loophole" and it directly benefits the US.


umm, he used a ton of different loopholes and I find it funny you suggest capital gains rate which alone are 15% to somehow get his overall taxes below that figure...

Here is but one example, Romney used a CRUT (charitable remainder unitrust) set up within the Mormon Church so that he could get a charities tax-exempt status. This allows him to defer capital gain taxes on any profit from the sale of the assets. Romney now receives small upfront charitable tax deduction, and cash payments yearly from the church (he now personally gets 8% of the churches assets each year).

Is this one of the loopholes he plans to close?

wjb21ndtown wrote:
2) If we could at least get these mega corporations to pay 14% we would be better off than the ZERO that they're currently paying.


Agreed. But are we to trust a man who personally methods like the one I just described to to lower his own personally tax rate AND who has given no specifics as to which loopholes he might close. I guess you just want us to blindly trust a politician.

wjb21ndtown wrote:
3) He can't say what loopholes he is going to close. If he did he would lose money from everyone that it was going to effect.


So lets me be evasive until after I'm elected so I can get your money now and take yours later! Good point WJB, guess that is worth my vote...

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November 5th, 2012, 4:03 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
Pablo wrote:
wjb21ndtown wrote:
Pablo, you're being ridiculous.

1) The capital gains rate isn't a "loophole" and it directly benefits the US.


umm, he used a ton of different loopholes and I find it funny you suggest capital gains rate which alone are 15% to somehow get his overall taxes below that figure...

Here is but one example, Romney used a CRUT (charitable remainder unitrust) set up within the Mormon Church so that he could get a charities tax-exempt status. This allows him to defer capital gain taxes on any profit from the sale of the assets. Romney now receives small upfront charitable tax deduction, and cash payments yearly from the church (he now personally gets 8% of the churches assets each year).

Is this one of the loopholes he plans to close?

wjb21ndtown wrote:
2) If we could at least get these mega corporations to pay 14% we would be better off than the ZERO that they're currently paying.


Agreed. But are we to trust a man who personally methods like the one I just described to to lower his own personally tax rate AND who has given no specifics as to which loopholes he might close. I guess you just want us to blindly trust a politician.

wjb21ndtown wrote:
3) He can't say what loopholes he is going to close. If he did he would lose money from everyone that it was going to effect.


So lets me be evasive until after I'm elected so I can get your money now and take yours later! Good point WJB, guess that is worth my vote...


I don't see anything wrong with a charitable trust, virtually every non-profit private university has one, they benefit the school, and real money is donated to them in ways that benefit them. I would be willing to bet that "church" that Mitt donates too also has a school., which is greatful for that trust, and all of the money that they will receive when the trust expires.

You do realize that "effective tax rate" and "tax rate" are two different things, right? EVERYONE pays a lower rate than their tax bracket. Everyone's first $9,780ish dollars are tax exempt, it's your personal deduction, your child credit is added to that, making your first $30kish dollars effectively tax free if you have a child, and on top of that any charitable deductions and mortgage deductions.

That being the case, and given the fact that Mitt is an EXTREMELY charitable person (he donated something like ($12% of his income, compared to something like 1.2% for Obama), he paid what he was required to pay, period, and I applaud him for that. Not like our head of the Treasury appointed by Obama who lied and cheated on his taxes... Hmmmm...


You're blindly trusting someone, regardless of whom you vote for. You could argue that you're not "blindly" trusting Obama, but you'd be voting for incompetence and higher taxes, with included loopholes. Obama has no plan to close loopholes that benefit HIS rich cronies (like Apple and GE)... It's funny how the most egregious stories of tax exemptions in the last 8 years (two terms) generally involve an oil corporation or a corporation affiliated with the Liberal agenda.


November 5th, 2012, 4:24 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
I do get "effective" tax rate vs "real tax" rate, however long term capital gains are all taxed at 15%. You don't pay just 5% of the first $10K in gains, 10% on the next $50K etc. You pointed out capital gains taxes as the "loophole" he used, this would only have increased his tax rate (effective or real).

You also point out how Mitt "paid what he was required to pay" - you then "applaud" him for that. Funny, I don't recall you applauding Apple for paying what they were required to pay! In addition, he really overpaid his taxes in 2011 by $250K by taking few deductions than he earned (interesting he would do this in a year in which he was running for prez) so you can stop clapping.

From what I've seen and read about his tax returns he pushes loopholes to the max in none election years, from his $100M IRA which he pays no taxes on growth to his paying the taxes for his son's trust funds (also coming out around $100M net value and BTW take these taxes out and his "effective tax rate" is significantly lower than 14%). As a private equity manager he also classified a lot of his income (which should be taxed at 35%) to be taxed as investment earnings (back down to 15%). He has also only released two years worth of returns which can really cloud the overall tax picture of the last decade or two. My guess is that he included a lot of "losses" from the sale of assets at Bain Capital and other firms that put his effective tax rate in non-disclosed years at something much closer, if not closer, to what Apple paid last year.

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November 5th, 2012, 4:49 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
Pablo wrote:
I do get "effective" tax rate vs "real tax" rate, however long term capital gains are all taxed at 15%. You don't pay just 5% of the first $10K in gains, 10% on the next $50K etc. You pointed out capital gains taxes as the "loophole" he used, this would only have increased his tax rate (effective or real).

You also point out how Mitt "paid what he was required to pay" - you then "applaud" him for that. Funny, I don't recall you applauding Apple for paying what they were required to pay! In addition, he really overpaid his taxes in 2011 by $250K by taking few deductions than he earned (interesting he would do this in a year in which he was running for prez) so you can stop clapping.

From what I've seen and read about his tax returns he pushes loopholes to the max in none election years, from his $100M IRA which he pays no taxes on growth to his paying the taxes for his son's trust funds (also coming out around $100M net value and BTW take these taxes out and his "effective tax rate" is significantly lower than 14%). As a private equity manager he also classified a lot of his income (which should be taxed at 35%) to be taxed as investment earnings (back down to 15%). He has also only released two years worth of returns which can really cloud the overall tax picture of the last decade or two. My guess is that he included a lot of "losses" from the sale of assets at Bain Capital and other firms that put his effective tax rate in non-disclosed years at something much closer, if not closer, to what Apple paid last year.


Pablo, when you're figuring your "taxable income" (capital gains or not), you're figuring your income, minus deductions. That's why his "effective tax rate" is lower than the capital gains rate. His "taxable income" is lower than his "real income" thereby reducing his "tax rate" below the capital gains rate.

Not to mention the guy paid $3.2 million last year (which is probably more than our entire message board will pay in their lifetime!), + a load in charitable contributions.

Try this article:
http://www.washingtonpost.com/blogs/rig ... _blog.html


November 5th, 2012, 5:09 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
This is why you clowns need to vote Ron Paul. Flat tax, no loopholes. You pay like everyone else, the impact is the same to Jim bob or apple. Same percentage piece of the pie.

Unfortunately, with congress, everything will have to get approved by those top of the percentage class guys who really don't give a poop.

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November 6th, 2012, 9:36 am
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
conversion02 wrote:
This is why you clowns need to vote Ron Paul. Flat tax, no loopholes. You pay like everyone else, the impact is the same to Jim bob or apple. Same percentage piece of the pie.

Unfortunately, with congress, everything will have to get approved by those top of the percentage class guys who really don't give a poop.



But voting Ron Paul was "throwing your vote away" cuz he had "no chance of winning". Same thing with voting third party.

Both parties are so affraid of changing the status quo that doing anything that actually makes sense for the future of this country is being preached as bad and a waste. I find it disgusting.

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November 6th, 2012, 10:57 am
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
That's why there should be no "parties". Vote based on character, voting history, plans for change and improvement....not because they're republican or democrat....

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November 6th, 2012, 12:38 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
conversion02 wrote:
That's why there should be no "parties". Vote based on character, voting history, plans for change and improvement....not because they're republican or democrat....



If we can get enough Voters to think your way, parties wouldn't matter. Sadly too many people play follow the leader.

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November 6th, 2012, 12:42 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
regularjoe12 wrote:
conversion02 wrote:
That's why there should be no "parties". Vote based on character, voting history, plans for change and improvement....not because they're republican or democrat....



If we can get enough Voters to think your way, parties wouldn't matter. Sadly too many people play follow the leader.


IMO it's the media, not the party organization, that's the real problem. Our media is so biased it's sick. If they would get behind all of the candidates, or even if they would REPORT people's enthusiasm with every candidate and turnout at their events, our elections would be much, much more fair.


November 6th, 2012, 1:02 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
wjb21ndtown wrote:
regularjoe12 wrote:
conversion02 wrote:
That's why there should be no "parties". Vote based on character, voting history, plans for change and improvement....not because they're republican or democrat....



If we can get enough Voters to think your way, parties wouldn't matter. Sadly too many people play follow the leader.


IMO it's the media, not the party organization, that's the real problem. Our media is so biased it's sick. If they would get behind all of the candidates, or even if they would REPORT people's enthusiasm with every candidate and turnout at their events, our elections would be much, much more fair.



I agree with you 100% in todays world. There used to be a time when Reporters had integrity and wopuld just tell the truth and let thier viewers/ readers make up their own minds. Now it's all spoon fed and anyone not paying attention doesnt even realize they are being told how to think.

the media is absolutley one of the biggest problems we have in this country. Politiciacns can get away with anything, cuz one set of news wont report it, and they'll just cry biased against th side that DOES report it....and sadly they would be right and it would all get dismissed. They have made it so politicians have no accountablility anymore.

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November 6th, 2012, 1:30 pm
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Post Re: Apple paid only 1.9 pct tax on earnings outside US
It's a built in mindset on conservative and liberal. It'd take a hell of a lot more than the media to change that. You'd be changing tradition and culture to an extent.

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November 6th, 2012, 6:00 pm
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