Comments for TaxVox

Comment on The Real Story About Apple’s Taxes by Jearold

Jearold — Wed, 22 May 2013 20:35:10 +0000

Decent reporting until the unnecessary and out-of-context snark at the end.

Comment on The Real Story About Apple’s Taxes by Ralph H

Ralph H — Wed, 22 May 2013 19:36:20 +0000

My understanding of VAT is that whatever labor went into “creating” the IP in California would be taxed. This is more than we get now. Admittedly, Apple could jack up the price of their phones so there was little Value Added at retail, but a pure sales tax would capture tax presuming at least 50% of sales was in US.

Currently the states may collect sales tax, but as the article pointed out Apple (and others) play games to shift profits to low tax countries, even where the bulk of sales is to the US. Frankly, I am not terribly interested in taxing Apple on sales ocurring in China or France, but we would be much better off if we could get our share.

Ethically I hate Apple, but the ultimate blame is on Congress who should be smart enough to design a tax system to fairly collect from all.

Comment on The Real Story About Apple’s Taxes by The Real Story About Apple’s Taxes | The Small Wave.

The Real Story About Apple’s Taxes | The Small Wave. — Wed, 22 May 2013 19:16:43 +0000

[...] Source [...]

Comment on The Real Story About Apple’s Taxes by Łukasz Markiewicz

Łukasz Markiewicz — Wed, 22 May 2013 19:11:59 +0000

My problem with this type of set up is that these companies effectively pay no tax anywhere on a large portion of their incomes, build up massive reserves of cash, then lobby Congress to repatriate that money with symbolic taxation on it, which they end up giving back to shareholders or buy back the stock.

I’m looking at this from an European perspective. When Tim Cook and Eric Schmidt say that Apple and Google pay all the taxes required by the local jurisdictions I feel very uncomfortable about this. Whatever profit they potentially make by selling goods and services is always wiped out by IP and licensing payments to subsidiaries in countries with no taxation. Cook made it sound like that money will undergo double taxation, since they paid taxes on it in EU. Which is very far from the truth. The biggest problem is the difficulty with regulating transfer pricing “Firms are supposed to price these assets at market value. But what does that mean when it comes to, say, proprietary computer code?” Set up properly you can create potentially unlimited expenses in tax-paying countries and creating profits in tax heavens.

Also, whenever I see an American CEO including VAT payments in the amount of tax paid by the company, my blood boils.

Comment on Should Congress Curb Tax-Exempt Municipal Bonds? by jerry

jerry — Wed, 22 May 2013 18:12:00 +0000

Hi there! I could have sworn I’ve been to your blog before but after going through a few of the articles I realized it’s new to me.

Anyhow, I’m certainly happy I came across it and I’ll be book-marking it and checking back regularly!

Comment on The Real Story About Apple’s Taxes by Dave

Dave — Wed, 22 May 2013 17:52:02 +0000

You took words right out of my mouth

Comment on The Real Story About Apple’s Taxes by Chris

Chris — Wed, 22 May 2013 17:19:07 +0000

National Sales Tax or VAT wouldn’t help. They are avoiding paying US Corporate Income Tax on anything that was NOT sold in the US by allowing the money to build up in an account owned by a subsidiary that isn’t based in the US. They pay US Corporate Income Tax, State Corporate Income Tax, and Sales Tax on everything that is sold in the US.

The problem is actually really interesting in that the senate is complaining that Apple isn’t paying corporate income tax on money that wasn’t made in the US.

Comment on The Real Story About Apple’s Taxes by Ignobilitor

Ignobilitor — Wed, 22 May 2013 16:56:44 +0000

You beat me to it!

Comment on The Real Story About Apple’s Taxes by Ignobilitor

Ignobilitor — Wed, 22 May 2013 16:56:01 +0000

Good article; however, I would dispute the premise of your last sentence, which betrays a misunderstanding of Apple’s clearly discernible business goals: Apple has never attempted to increase their share in the less profitable segments of a given market.

Comment on The Real Story About Apple’s Taxes by David M.

David M. — Wed, 22 May 2013 16:47:50 +0000

Maybe you haven’t noticed, but in the US, Apple is has the marketshare in phones and is clobbering Android in tablets.

And for profits, Apple is destroying Android.

Of course, only Samsung is making any money. Every other Android vendor is losing their shirts. But hey, as long as there is marketshare, all is well.

Comment on The Real Story About Apple’s Taxes by Ralph H

Ralph H — Wed, 22 May 2013 16:35:12 +0000

This is disgraceful. I realize most international firms do it but the result is shifting tax burden to Domestic companies and individuals. Completely unfair. How about ending the corporate tax and replacing it with a small national sales tax or VAT? Just make it broad based and include service providers (like lawyers and accountants!).

Comment on The Real Story About Apple’s Taxes by Should Apple just write a big check to the IRS? « Roth & Company, P.C

Should Apple just write a big check to the IRS? « Roth & Company, P.C — Wed, 22 May 2013 15:00:44 +0000

[...] I’ll give Howard Gleckman of TaxVox the last word: [...]

Comment on A New Way to Address the International Tax Mess by The Real Story About Apple’s Tax Avoidance: How Ordinary It Is | NewsCred Plugin Dev Site

Tue, 21 May 2013 22:19:16 +0000

[...] The tactics are complicated but the strategy is simple: A company designs its business to locate as much income as possible in those countries where taxes are low. At the same time, it allocates as many costs as possible to those high-tax jurisdictions (like the U.S.) where deductions are especially valuable. A deduction is worth 35 cents on the dollar in the U.S. but only one-third as much in Ireland, where the corporate rate is only 12.5 percent. [...]

Comment on A New Way to Address the International Tax Mess by The Real Story About Apple’s Tax Avoidance: How Ordinary It Is | Business

The Real Story About Apple’s Tax Avoidance: How Ordinary It Is | Business — Tue, 21 May 2013 21:48:31 +0000

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Comment on Five Things You Should Know About the Online Sales Tax Bill by Online Store Creation

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Comment on How Bad is the Budget Outlook? by the verve pipe

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Comment on Secret Campaign Giving and Abusing the Tax Law by IRS Impeachment Issue or Election Advocacy | lablouisianaboy

IRS Impeachment Issue or Election Advocacy | lablouisianaboy — Tue, 21 May 2013 01:34:34 +0000

[...] Gleckman wrote this blog entry for the Tax Policy Center back in 2010 where he addressed the issue and offered the [...]

Comment on How Bad is the Budget Outlook? by work compensation claim

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Comment on Obama's Empty Social Security Fix by Alonzo Deblauw

Alonzo Deblauw — Sun, 19 May 2013 14:23:52 +0000

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Comment on Secret Campaign Giving and Abusing the Tax Law by Congress Should Get The IRS Out Of The Business Of Regulating Political Speech | primakseft.cz

Sun, 19 May 2013 01:38:14 +0000

[...] On one hand, it has been under pressure to crack down on what some see as abuses (I wrote a Tax Vox blog urging the agency to act back in 2010). Yet, when it tried, it was rightly accused of political [...]

Comment on Why Romney and Obama Pay the Taxes They Pay by Angelina

Angelina — Sun, 19 May 2013 00:09:09 +0000

I am very happy to read this. This is the kind of manual that needs to be given and not the random misinformation that is at the other blogs.

Comment on Washington Starts To Dance Away from the Fiscal Cliff by Vladislav

Vladislav — Sat, 18 May 2013 23:06:21 +0000

I’ll complain which you have copied materials from one more source

Comment on Why Auto-enroll 401(k)s May Reduce Retirement Savings by Nicola

Nicola — Sat, 18 May 2013 22:47:19 +0000

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Comment on Secret Campaign Giving and Abusing the Tax Law by Klara

Klara — Sat, 18 May 2013 22:42:47 +0000

Comment on Secret Campaign Giving and Abusing the Tax Law by Congress Should Get The IRS Out Of The Business Of Regulating Political Speech. | InterViewDvd MagaZine Blog

Sat, 18 May 2013 21:22:08 +0000

[...] On one hand, it has been under pressure to crack down on what some see as abuses (I wrote a Tax Vox blogurging the agency to act back in 2010). Yet, when it tried, it was rightly accused of political [...]

Comment on The IRS and the Tea Party: Treasury Report Finds Big Bungling but Small Scandal by Mary Beheler

Mary Beheler — Sat, 18 May 2013 20:32:27 +0000

So, if the groups being investigated were not planning on getting involved in politics, why such distress over missing and election cycle or two?
Two-thirds NOT tea-party? Who are the two-thirds?
Quick! Tell me the primary purpose of a Tea-Party group!

Comment on Should Congress Extend the Payroll Tax Holiday? by Quiz

Quiz — Sat, 18 May 2013 15:15:33 +0000

You simply copied somebody else’s tale

Comment on TPC's New Tax Calculator by Refinance Calculator

Refinance Calculator — Sat, 18 May 2013 09:38:48 +0000

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Comment on Why Do People Pay No Federal Income Tax? by ppcgeeks

ppcgeeks — Sat, 18 May 2013 03:56:16 +0000

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