Tuesday, May 1, 2012

How Apple Sticks It to High-Tax States

The apple of the taxpayers eye? Apple Computer is notoriously good at legal tax avoidance which is a sound business strategy. But Apple also shakes down states and cities for taxpayer dollars and that's corporate welfare.  Gary North at The Tea Party Economist has the highest praise for Apple's ability to avoid taxes.
Apple serves its customers well by cutting its costs. Taxes are a cost.
Apple serves its shareholders well by increasing profits. Cutting taxes increases profits.
By setting up divisions in Nevada, where there is mo state income tax on corporations, Apple avoids the grasping hand of California, which taxes corporations at 8.8%
I love it!
Across the nation, Apple stiffs states that impose income taxes.
When companies sell ideas or digits, they can operate anywhere. They should go where taxes are low.This is what they are doing.
The politicians grind their teeth. “How dare these firms go where we can’t get at their bank accounts?” It’s so easy when you know how.  
Apple knows how.

Read the rest here
The Tea Party Economist

In Texas, Apple is robbing the taxpayers and Texas is a low tax state.  
The state of Texas has promised Apple $21 million. The City of Austin has promised Austin $8.6 million.
Now it’s Travis County’s turn to pay up. Apple executives will meet with Travis County Commissioners Monday to hammer out a tax incentive package the county will offer the computer giant.
The commission will vote Tuesday on whether or not to give Apple $6 million in tax incentives. It’s not thought that the commission will put up any opposition to the deal.
Apple is looking for a total $35.6 million in tax breaks in order to expand its operations in Austin. Apple is supposed to hire 3,500 people and expand its North Austin campus as part of the deal.
No one is government has outlined just how the taxpayers who are bankrolling the deal will benefit from their investment.
But city and county leaders are already handing out goodies to special interest groups and have politicized the Apple deal.
Read the rest here
The Digital Texan 

Just how rich is Apple?

Apple (AAPL) is a cash cow. In its latest quarterly report , Apple listed $10.1 billion in cash, $18.4 billion in short-term marketable securities, and $81.6 billion in long-term marketable securities. In total, Apple is carrying $110 billion in cash and investment securities on top of 929,277,000 shares outstanding....
Right now, Apple is the largest corporation in the world and boasts a $560 billion market capitalization.
Read the rest here
Seeking Alpha

Judy Morris

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