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

 
AAPL
$109.41
Apple Inc.
+2.67
MSFT
$45.74
Microsoft Corpora
+0.58
GOOG
$504.89
Google Inc.
+9.50

MacTech Search:
Community Search:

Software Updates via MacUpdate

Command-C 1.1.7 - Clipboard sharing tool...
Command-C is a revolutionary app which makes easy to share your clipboard between iOS and OS X using your local WiFi network, even if the app is not currently opened. Copy anything (text, pictures,... Read more
Tidy Up 4.0.2 - Find duplicate files and...
Tidy Up is a complete duplicate finder and disk-tidiness utility. With Tidy Up you can search for duplicate files and packages by the owner application, content, type, creator, extension, time... Read more
Typinator 6.3 - Speedy and reliable text...
Typinator turbo-charges your typing productivity. Type a little. Typinator does the rest. We've all faced projects that require repetitive typing tasks. With Typinator, you can store commonly used... Read more
GraphicConverter 9.5 - Graphics editor w...
GraphicConverter is an all-purpose image-editing program that can import 200 different graphic-based formats, edit the image, and export it to any of 80 available file formats. The high-end editing... Read more
Toast Titanium 12.0.1 - The ultimate med...
Toast Titanium goes way beyond the very basic burning in the Mac OS and iLife software, and sets the standard for burning CDs, DVDs, and now Blu-ray discs on the Mac. Create superior sounding audio... Read more
QuickBooks 2015 16.0.2.1422 R3 - Financi...
Save 20% on QuickBooks Pro for Mac today through this special discount link QuickBooks Pro 2013 helps you manage your business easily and efficiently. Organize your finances all in one place, track... Read more
Remotix 3.0.6 - Access all your computer...
Remotix is a fast and powerful application to easily access multiple Macs (and PCs) from your own Mac. Features: Complete Apple Screen Sharing support - including Mac OS X login, clipboard... Read more
BetterZip Quick Look Generator 1.5 - Let...
BetterZip Quick Look Generator lets you view the contents of compressed archives through OS X's Quick Look functions. Simply select an archive in the Finder, in Mail, or Spotlight and press the... Read more
Sandvox 2.9.3 - Easily build eye-catchin...
Sandvox is for Mac users who want to create a professional looking website quickly and easily. With Sandvox, you don't need to be a Web genius to build a stylish, feature-rich, standards-compliant... Read more
Pixelmator 3.3.1 - Powerful layer-based...
Pixelmator is a beautifully designed, easy-to-use, fast, and powerful image editor for OS X. It has everything you need to create, edit, and enhance your images. Pixelmator is a layer-based image... Read more

Latest Forum Discussions

See All

Hipstify Review
Hipstify Review By Jennifer Allen on December 17th, 2014 Our Rating: :: COOL FILTERSUniversal App - Designed for iPhone and iPad Add filters, quotes, and fancy frames to your images, thanks to Hipstify.   | Read more »
Mighty Smighties Gets Evolve Cards and N...
Mighty Smighties Gets Evolve Cards and New Worlds Posted by Jessica Fisher on December 17th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Duckie Deck Card Wars Review
Duckie Deck Card Wars Review By Amy Solomon on December 17th, 2014 Our Rating: :: STYLISH GAME OF CARDSUniversal App - Designed for iPhone and iPad Duckie Deck Card Wars adapts the classic card game War for use on devices, complete... | Read more »
PDF Office Review
PDF Office Review By Jennifer Allen on December 17th, 2014 Our Rating: :: CONVENIENT PDF EDITINGiPad Only App - Designed for the iPad Want to create your own PDF files? Import them from elsewhere? Adapt a web page into a PDF? PDF... | Read more »
The Out There: Ω Edition Update will be...
The Out There: Ω Edition Update will be Releasing in 2015, Bringing Better Graphics and Additional Content Posted by Jessica Fisher on December 17th, 2014 [ permalink ] | Read more »
Pinball Planet Pro (Games)
Pinball Planet Pro 1.02 Device: iOS Universal Category: Games Price: $2.99, Version: 1.02 (iTunes) Description: - Our missionWe've always loved to play pinball games but we noticed most modern pinball games are simulators for the... | Read more »
Ultrakam 4k. The Professional Camera App...
Ultrakam 4k. The Professional Camera App. 3.0 Device: iOS Universal Category: Photography Price: $9.99, Version: 3.0 (iTunes) Description: In March 2014, Ultrakam brought Film Resolution for iPhone for the first time ever and now is... | Read more »
Email+ (Business)
Email+ 1.0 Device: iOS Universal Category: Business Price: $2.99, Version: 1.0 (iTunes) Description: Send email, fast! | Read more »
Mayor it up in SimCity BuildIt, Out Now
Mayor it up in SimCity BuildIt, Out Now Posted by Jessica Fisher on December 16th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Crusaders Quest Review
Crusaders Quest Review By Jennifer Allen on December 16th, 2014 Our Rating: :: GOTTA HIRE EM ALLUniversal App - Designed for iPhone and iPad Hire as many heroes as possible in this fun at first but grind-heavy freemium RPG.   | Read more »

Price Scanner via MacPrices.net

Holiday sales continue: MacBook Pros for up t...
 B&H Photo has new MacBook Pros on sale for up to $300 off MSRP as part of their Holiday pricing. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $1699... Read more
Google Search App For iOS Gets A Major Makeov...
Google has given iOS users an early Christmas present with a substantial update of it’s not-very-often-upgraded Google Search app. Google Search has been my go-to tool for Web searches since it was... Read more
ShopKeep Apple Pay And Chip Card Reader Avail...
ShopKeep, a cloud-based technology provider to more than 10,000 small business owners to manage retail shops and restaurants with iPads, has released its new Apple Pay and chip card reader. This... Read more
Holiday sale! 27-inch 5K iMac for $2299, save...
 B&H Photo has the 27″ 3.5GHz 5K iMac in stock today and on sale for $2299 including free shipping plus NY sales tax only. Their price is $200 off MSRP, and it’s the lowest price available for... Read more
Holiday Sale! 3.7GHz Quad Core Mac Pro availa...
 B&H Photo has the 3.7GHz Quad Core Mac Pro on sale for $2599 including free shipping plus NY sales tax only. Their price is $400 off MSRP, and it’s the lowest price for this model from any... Read more
iPhone 6 Number 3 Canadian Google Search Of 2...
CTVNews.ca reports that Apple’s iPhone 6 was the third highest-trending Google Canada search topic of 2014, exceeded only by Robin Williams largely after his death by suicide in August, and the FIFA... Read more
New iPad mini 3 Counter-Top & Wall Mount...
newMacgadgets has announced new secure all-acrylic displays for the iPad mini 3 (also works fine with the mini 2, last year’s iPad mini With Retina Display, and the original iPad mini). The new iPad... Read more
Holiday sales continue, MacBook Airs for up t...
B&H Photo has 2014 MacBook Airs on sale for up to $120 off MSRP, for a limited time, for the Thanksgiving/Christmas Holiday shopping season. Shipping is free, and B&H charges NY sales tax... Read more
B&H lowers price on 27-inch 3.2GHz iMac t...
B&H Photo has lowered their price on the 27″ 3.2GHz iMac, now on sale for $1629 including free shipping plus NY sales tax only. Their price is $170 off MSRP, and it’s the lowest price for this... Read more
15-inch 2.0GHz Retina MacBook Pro available f...
B&H Photo has lowered their price on leftover 2013 15″ 2.0GHz Retina MacBook Pros to $1499 including free shipping plus NY sales tax only. Their price is $500 off original MSRP. Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
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* Retail - Multiple Positions (US) - A...
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* Retail - Multiple Positions (US) - A...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions (US) - A...
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
Project Manager / Business Analyst, WW *Appl...
…a senior project manager / business analyst to work within our Worldwide Apple Fulfillment Operations and the Business Process Re-engineering team. This role will work Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.