[Vision2020] A Wormy Apple

Wed May 22 17:47:42 PDT 2013

Simplifying the tax code doesn't necessarily result in getting rid of loopholes.  It may widen the loopholes and it may make it easier for tax avoidance.  The reason why the tax code is so elaborate is mainly due to determining 'what is taxable income'  If I were in the business of selling capital equipment and I sold some gear for its $1 million price tag, should my company be required to pay a tax percentage on the entire amount of revenue?  Or are they allowed to deduct all / some of the costs of advertising, sales meetings, lobster dinners + hookers to close the deal, manufacturing, shipping, installation, and training.  And what percentage of other business costs can be deducted from this sale for things like company building rent / maintenance / power / custodial service / payroll / etc., etc., etc.

Further, with a simplified tax code, is the company I sold to no longer able to account for this new purchase as Capital Expense thereby missing out on being able to depreciate this gear over 36 months or so?  Or are all expenses converted over to and account for as Operating Expense?  If so, this would hurt my business & quarterly/annual sales cycles.

Also, lowering the tax code for companies doesn't mean that they'll have less incentives to shelter money.  We live in a global economy.  Apple is able to manufacture / sell its products and collect money entirely offshore in some cases which allows them avoid bringing any of those products and associated cash into this United States where it would be subjected to our 'convoluted tax code' whereby the IRS could get their slice of the apple.

I can see 'simplifying' the tax code resulting in reducing the the size of the IRS and similarly put a lot of CPAs out of their career, but I highly doubt that it would result in less shenanigans of tax avoidance.

-Scott

Date: Tue, 21 May 2013 11:10:13 -0700
From: godshatter at yahoo.com
To: art.deco.studios at gmail.com; vision2020 at moscow.com
Subject: Re: [Vision2020] A Wormy Apple

I think they should contribute.  I'm all for getting rid of loopholes and simplifying the tax code.  At the same time, I'm for lowering the corporate tax rate so that (hopefully) they will have less incentive to try to find these kinds of tax breaks.  If we simplify the tax code, maybe we can shrink the size of the IRS in the bargain.

If it's legal for Apple to do what they are doing (and it appears it is), then they have the right to make use of whatever existing tax rules minimize their tax burden.  The same is true for individuals.  I believe there was a Supreme Court case that ruled on this.

I agree with Rand Paul on this one.  The problem isn't Apple, the problem is Congress and our convoluted tax code.

Paul

        From: Art Deco <art.deco.studios at gmail.com>
 To: vision2020 at moscow.com 
 Sent: Tuesday, May 21, 2013 10:58 AM
 Subject: Re: [Vision2020] A Wormy Apple

So here is a company making billions and billions using physical and social infrastructure which we as taxpayers help to construct and maintain, and they should not contribute toward that?

Wonderful.

w.

On Tue, May 21, 2013 at 12:55 PM, Paul Rumelhart <godshatter at yahoo.com> wrote:

Here's a quote from Rand Paul on the hearings:

"I'm offended by the 
spectacle of dragging in executives from an American company that is not
 doing anything illegal," he added. "If anyone should be on trial, it 
should be Congress." 

My sentiments exactly.  Quote from: http://www.businessinsider.com/rand-paul-congress-not-apple-should-be-on-trial-for-taxes-2013-5

Paul

    From: Art Deco <art.deco.studios at gmail.com>
 To: Paul Rumelhart <godshatter at yahoo.com> 

 Sent: Tuesday, May 21, 2013 9:01 AM
 Subject: Re: [Vision2020] A Wormy Apple

@Paul,

Yes. 
 But much easier said then done when large corporations now contribute so much to elected officials.  They don't do it for altruistic purposes, but for bottom line purposes, i.e. buying face time.

w.

On Tue, May 21, 2013 at 11:00 AM, Paul Rumelhart <godshatter at yahoo.com> wrote:

They haven't actually broken any laws that I can tell.  If the law allows this kind of tom-foolery, then it's no wonder corporations make use of it.  If we want this to change, we must change the laws.

Paul

    From: Scott Dredge <scooterd408 at hotmail.com>
 To: Art Deco <art.deco.studios at gmail.com>; viz <vision2020 at moscow.com> 

 Sent: Monday, May 20, 2013 6:41 PM
 Subject: Re: [Vision2020] A Wormy Apple

Apple shareholders are likely very pleased about this tax avoidance.

Date: Mon, 20 May 2013 17:48:27 -0400
From: art.deco.studios at gmail.com

To: vision2020 at moscow.com
Subject: [Vision2020] A Wormy Apple

         |
         BREAKING NEWS ALERT

         NYTimes.com 

         |
         Unsubscribe

      BREAKING NEWS
      Monday, May 20, 2013 5:08 PM EDT

         Apple Avoided Billions in Taxes, Congressional Panel Says

          Even as Apple became the nation’s most profitable technology company,
it avoided billions in taxes in the United States and around the world through a
web of subsidiaries so complex it spanned continents and surprised experts, a
Congressional investigation has found.
Some of these subsidiaries had no
employees and were largely run by top officials from the company’s
headquarters in Cupertino, Calif., according to Congressional investigators. But
by officially locating them in places like Ireland, Apple was able to, in
effect, make them stateless – exempt from taxes, record-keeping laws and
the need for the subsidiaries to even file tax returns anywhere in the
world.
In 2011, for example, one subsidiary paid Ireland just
one-twentieth of 1 percent in taxes on $22 billion on pretax earnings from
various operations; another did not file a corporate tax return anywhere and has
paid almost nothing on $30 billion in profits since 2009.

            READ MORE »
            http://www.nytimes.com/2013/05/21/business/apple-avoided-billions-in-taxes-congressional-panel-says.html?emc=na

-- 
Art Deco (Wayne A. Fox)
art.deco.studios at gmail.com

=======================================================
 List services made available by First Step Internet,
 serving the communities of the Palouse since 1994.
               http://www.fsr.net
          mailto:Vision2020 at moscow.com
======================================================= 		 	   		  

=======================================================
 List services made available by First Step Internet,
 serving the communities of the Palouse since 1994.
               http://www.fsr.net

          mailto:Vision2020 at moscow.com
=======================================================

-- 
Art Deco (Wayne A. Fox)
art.deco.studios at gmail.com

-- 
Art Deco (Wayne A. Fox)
art.deco.studios at gmail.com

=======================================================
 List services made available by First Step Internet,
 serving the communities of the Palouse since 1994.
               http://www.fsr.net
          mailto:Vision2020 at moscow.com
=======================================================

=======================================================
 List services made available by First Step Internet,
 serving the communities of the Palouse since 1994.
               http://www.fsr.net
          mailto:Vision2020 at moscow.com
======================================================= 		 	   		  
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/vision2020/attachments/20130522/b0bee853/attachment-0001.html>