Should Apple pay more taxes? Create more US jobs?
TweetFollow Us on Twitter

Should Apple pay more taxes? Create more US jobs?

Economist Martin Sullivan says Apple is no better than other multinationals that have been "painted as corporate tax dodgers by major media outlets." This would seem to contradict a Nov. 3 report in which Citizens for Tax Justice estimated that Apple paid an average effective U.S. tax rate of 31% between 2008 and 2010.

That's close to the ostensible corporate income tax rate of 35%, notes the "San Francisco Chronicle" (http://macte.ch/coRY2). Out of 280 companies in the study, only 49 had a higher effective tax rate than Apple.

However, Sullivan says "despite outward appearances, Apple enjoys enormous foreign tax benefits, just as GE and Google do. By taking advantage of lax U.S. and foreign tax laws, Apple has been able to book a large share of its foreign profits in low-tax jurisdictions and greatly reduce its tax liability in the United States and other major countries where it conducts most of its real business activity." He estimates that by shifting profits overseas, Apple is costing the U.S. government more than US$1 billion a year.

Sullivan says that most of Apple's intellectual property is created in the United States and if most of Apple's product development takes place here, the company ought to book a lot more than 30% of its profits and pay tax on it here. However, Apple books most of its overseas profits in countries with zero or near-zero corporate tax rates, he adds.

None of this, by the way, is illegal. So naturally most big companies do it. But with the US's economy in the toilet, perhaps it's time to revisit policies in which companies can shift a disproportionate share of their profits overseas.

And what of moving more of its manufacturing back to the US? Alas, that's not going to happen as long as most tech companies keep prices down by working with factories in China and elsewhere. In all fairness, it has to be mentioned that Apple does create lots of jobs here in the US of A.

A study by researchers at UC Irvine found that the iPod was responsible for creating nearly 14,000 jobs in the U.S. and another 27,000 abroad, Bill Snyder of "InfoWorld" recently wrote. Of course, those numbers are a few years old.

"Sure, the iPod, iPad, and iPhone are assembled in Asia. But the real value in those products was added in Cupertino, Calif. -- part of Silicon Valley -- where they were invented, and in the offices and cubicles of developers around the country who crank out the apps that make the iPad and the iPhone so useful," Snyder writes. "The offshore jobs are mostly in low-wage manufacturing, while the jobs in the states are more evenly divided between high-wage engineers and managers and lower-wage retail and nonprofessional workers. As a result of this and of cross-country wage differences, U.S. workers earned a total of $753 million, while workers outside the country earned $318 million, the researchers found."

But is it possible that Apple could and should do more? Donald L. Bartlett and James B. Steele -- contributing editors at "Vanity Fair" -- think so in an op-ed piece for "The Philadelphia Inquirer" (http://macte.ch/8SfhA).

"After only one generation, all the Apple manufacturing jobs in America disappeared, as the work of building and assembling the machines was turned over to laborers in sweatshops in China and other countries," they write. "Jobs that should have provided employment for Americans for decades to come were terminated."

So should Apple pay more taxes? Should the company provide more manufacturing jobs in the US? Could it remain profitable if it did?

If I had the answers, I'd be a highly paid economic advisor. Still, with so many people without work in the US, it would be great to see companies like Apple making efforts to jumpstart the American economy and increase the number of jobs for US citizens.

I'd pay a few more bucks for an Apple product to make this happen? Would you?

-- Dennis Sellers

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Ember 1.8.3 - Versatile digital scrapboo...
Ember (formerly LittleSnapper) is your digital scrapbook of things that inspire you: websites, photos, apps or other things. Just drag in images that you want to keep, organize them into relevant... Read more
Apple iTunes 12.1 - Manage your music, m...
Apple iTunes lets you organize and play digital music and video on your computer. It can automatically download new music, app, and book purchases across all your devices and computers. And it's a... Read more
LibreOffice 4.4.3 - Free, open-source of...
LibreOffice is an office suite (word processor, spreadsheet, presentations, drawing tool) compatible with other major office suites. The Document Foundation is coordinating development and... Read more
FoldersSynchronizer 4.2.1 - Synchronize...
FoldersSynchronizer is a popular and useful utility that synchronizes and backs-up files, folders, disks and boot disks. On each session you can apply special options like Timers, Multiple Folders,... Read more
Simon 4.0.2 - Monitor changes and crashe...
Simon monitors websites and alerts you of crashes and changes. Select pages to monitor, choose your alert options, and customize your settings. Simon does the rest. Keep a watchful eye on your... Read more
Cocktail 8.1.2 - General maintenance and...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
Cyberduck 4.6.4 - FTP and SFTP browser....
Cyberduck is a robust FTP/FTP-TLS/SFTP browser for the Mac whose lack of visual clutter and cleverly intuitive features make it easy to use. Support for external editors and system technologies such... Read more
Herald 5.0.2 - Notification plugin for M...
Note: Versions 2.1.3 (for OS X 10.7), 3.0.6 (for OS X 10.8), and 4.0.8 (for OS X 10.9) are no longer supported by the developer. Herald is a notification plugin for Mail.app, Apple's Mac OS X email... Read more
DEVONthink Pro 2.8.3 - Knowledge base, i...
Save 10% with our exclusive coupon code: MACUPDATE10 DEVONthink Pro is your essential assistant for today's world, where almost everything is digital. From shopping receipts to important research... Read more
Boom 2 1.0.1 - System-wide pro audio app...
Boom 2 is a system-wide volume booster and equalizer app that is designed especially for OS X 10.10 Yosemite. It comes with a smart interface, self-calibrates itself according to your Mac, offers... Read more

Storm the Halls of Echo Base in First St...
Storm the Halls of Echo Base in First Star Wars: Galactic Defense Event Posted by Jessica Fisher on January 30th, 2015 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Contradiction Review
Contradiction Review By Tre Lawrence on January 30th, 2015 Our Rating: :: SPOT THE LIEiPad Only App - Designed for the iPad Contradiction is a live action point and click adventure that’s pretty engaging.   Developer: Tim Follin... | Read more »
Unlock Sunshine Girl in Ironkill with th...
Unlock Sunshine Girl in Ironkill with this special 148Apps code Posted by Rob Rich on January 29th, 2015 [ permalink ] Robo-fighter Ironkill has been out on iOS a | Read more »
Crossroad Zombies Review
Crossroad Zombies Review By Jordan Minor on January 29th, 2015 Our Rating: :: CROSSWALKING DEADiPad Only App - Designed for the iPad Crossroad Zombies is a rough draft of a cool genre mash-up.   | Read more »
Blood Brothers 2 – Tips, Cheats, and Str...
War is hell: Is it the kind of hell you want to check out? Read our Blood Brothers 2 review to find out! Blood Brothers 2, DeNA’s follow-up to the original Blood Brothers, is an intriguing card collecting / role-playing / strategy hybrid. There’s... | Read more »
Blood Brothers 2 Review
Blood Brothers 2 Review By Nadia Oxford on January 29th, 2015 Our Rating: :: AN AGGRAVATING RELATIVEUniversal App - Designed for iPhone and iPad Blood Brothers 2 is built on a simple, solid foundation, but its free-to-play system... | Read more »
I AM BREAD, the Toast of the Town, is Ro...
Have you ever dreamt of being deliciously gluten-y? Do you feel passionate about Rye and Wheat? The guys at Bossa Studios do and that is why they are bringing I AM BREAD to iOS soon. The loafy app will feature all the new content that is being... | Read more »
Fahrenheit: Indigo Prophecy Remastered R...
Fahrenheit: Indigo Prophecy Remastered Review By Jennifer Allen on January 29th, 2015 Our Rating: Universal App - Designed for iPhone and iPad 10 years after its initial release and Fahrenheit: Indigo Prophecy still feels like a... | Read more »
Evolve: Hunters Quest is a Match-3 That...
Evolve: Hunters Quest is a Match-3 That Has You Hunting Up Some Big Game. Posted by Jessica Fisher on January 29th, 2015 [ permalink ] | Read more »
Destructamundo Review
Destructamundo Review By Jordan Minor on January 29th, 2015 Our Rating: :: WRECKING CREWUniversal App - Designed for iPhone and iPad Destructamundo blows up real good.   | Read more »

Price Scanner via MacPrices.net

Apple Becomes World’s Largest Smartphone Vend...
According to the latest research data from Strategy Analytics, as global smartphone shipments grew 31 percent annually to reach a record 380 million units in the fourth quarter of 2014. Apple became... Read more
Cut the Cord: OtterBox Resurgence Power Case...
Dead batteries and broken phones are two of the biggest issues for smartphone users today. Otterbox addresses both with the new Resurgence Power Case for Apple iPhone 6, promising to make those panic... Read more
13-inch Retina MacBook Pros on sale for up to...
B&H Photo has 13″ Retina MacBook Pros on sale for $200 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.6GHz/128GB Retina MacBook Pro: $1199.99 save $100 - 13″ 2.6GHz/... Read more
15-inch 2.5GHz Retina MacBook Pro on sale for...
 B&H Photo has the 15″ 2.5GHz Retina MacBook Pro on sale for $2319.99 including free shipping plus NY sales tax only. Their price is $180 off MSRP, and it’s the lowest price available for this... Read more
Back in stock: Refurbished iPod nanos for $99...
The Apple Store has Apple Certified Refurbished 16GB iPod nanos available for $99 including free shipping and Apple’s standard one-year warranty. That’s $50 off the cost of new nanos. Most colors are... Read more
Apple lowers price on refurbished 256GB MacBo...
The Apple Store has lowered prices on Apple Certified Refurbished 2014 MacBook Airs with 256GB SSDs, now available for up to $200 off the cost of new models. An Apple one-year warranty is included... Read more
New Good Management Suite Simplifies Enterpri...
Good Technology has announced the availability of the Good Management Suite, a comprehensive cross-platform solution for organizations getting started with mobile business initiatives. Built on the... Read more
15-inch 2.0GHz Retina MacBook Pro (refurbishe...
The Apple Store has Apple Certified Refurbished previous-generation 15″ 2.0GHz Retina MacBook Pros available for $1489 including free shipping plus Apple’s standard one-year warranty. Their price is... Read more
15-inch 2.5GHz Retina MacBook Pro on sale for...
Amazon has the 15″ 2.5GHz Retina MacBook Pro on sale for $2319.99 including free shipping. Their price is $180 off MSRP, and it’s the lowest price available for this model from any reseller. Read more
iPad Turns Five – The ”Book Mystique
Five years ago this week, the late Steve Jobs took the stage at an Apple special press event to unveil the first Apple iPad — a slab-shaped, hand-holdable device that was to shake the personal... Read more

Jobs Board

At-Home Chat Specialist- *Apple* Online Stor...
**Job Summary** At Apple , we believe in hard work, a fun environment, and the kind of creativity and innovation that only comes about when talented people from diverse Read more
SW QA Engineer - *Apple* TV - Apple (United...
**Job Summary** The Apple TV team is looking for experienced Quality Assurance Engineers with a passion for delivering first in class home entertainment solutions. **Key Read more
*Apple* Retail - Multiple Positions(US) - Ap...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you re also the Read more
*Apple* Systems Engineer - Pre Sales, Educat...
…is responsible for proactively providing technical expertise to drive sales of Apple solutions into assigned accounts. The SE architects, validates, and assists in Read more
*Apple* Solutions Consultant - Retail Sales...
As an ambassador of the Apple brand, the ASC is accountable for driving sales performance by: Connecting with customers. Discovering customers' needs and values. Showing Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.