What Did Apple Do Wrong?
Maybe if the tax code was simple, flat, and fair we wouldn’t see things like this.
Check it out:
Members of Congress called Apple executives to testify on Capitol Hill yesterday. Why? Because the company makes money overseas, and some Senators want to get their hands on the cash.
A Senate subcommittee accused the company of “shifting” profits from the U.S. to other countries and avoiding paying taxes.
But Apple pays its U.S. taxes. Heritage tax expert Curtis Dubay said the earnings aren’t “shifted,” because “it’s not income that’s earned here in the U.S.”
“I can’t go down to the Apple store here in Washington, buy an iPad, and have Apple then ‘shift’ that income abroad,” Dubay said.
The Senators were up in arms about Apple keeping income in Ireland. The issue was the company’s foreign income earned from all those iPhones and iPods that people around the world are buying.