1/40th of the total U.S. corporate income tax was paid by none other than Apple in 2012, in the form of $6 billion

It is not a secret that Apple makes a lot of money. It also is no secret that large companies, particularly the technology ones who are part of a booming industry, use different techniques and methods to avoid paying the US corporate income tax. The way Apple has been found to do this, is it moves a large percentage (around 70%) to “overseas affiliates” where the tax rates are lower, therefore it doesn’t have to pay as much. All the ways Apple uses are legal under the US system. Even using this Apple paid a huge amount in taxes, with this explanation:

In fiscal 2012 we paid $6 billion in federal corporate income taxes, which is 1 out of every 40 dollars in corporate income taxes collected by the U.S. government.

That is a ton. $6 billion? If it is paying $6 billion in taxes even after moving some of the income overseas, I don’t see a problem with it continuing what it is doing. That total of $6 billion makes it to where, as pointed out, Apple pays around 1/40 of the total corporate income tax in the US. The method that Apple uses to pay less taxes is one that is now used by many companies, called the “Double Irish With a Dutch Sandwich.” Profits would be routed to the Caribbean through Irish and Dutch subsidiaries.

What do you think? Should Apple just keep all its money here? Are you okay with what its doing? Let us know in the comments, or tweet me @TiP_Kyle.

 

Via: MacRumors, NYT

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