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I'm certainly not 100% onboard with current tax policy, but it makes some sense when much of the value of the product being sold worldwide is created by US-base
by ericd 11y ago
I'm certainly not 100% onboard with current tax policy, but it makes some sense when much of the value of the product being sold worldwide is created by US-based designers. Apple, for example - a huge portion of their value is created by their design teams in CA, but they make a huge fraction of their profits from those products by selling overseas.
- Retric 11y agoYou can't identify with any accuracy where profit showed up. R&D in country X, Y production in Y, Z sales in X, Y, Z, and A. Now, which country added profits. Except instead of X, Y, Z, it's ~150+ countries.
- ericd 11y agoYep, which is why we have simplified assumptions like "we tax everything at x rate", where x rate is likely lower lower than if they were successful at separating out what profit was made where.
- ploxiln 11y agoPresumably Apple's design teams are well paid to keep producing all that value they produce, and the income taxes are captured in the US.
- ericd 11y agoTrue. I don't subscribe to the idea that salaries are proportional to the value they create, though. Anyway, there are arguments to be made on both sides, and it's clearly not working very well.