7 ms·

As far as companies go, Apple has enough money to basically be a deity. I think more of it should be in the hands of their employees and the American taxpayer.

itissid 8y ago
It's true, their cash on hand tops the GDP of many countries.
- briandear 8y ago
  They also pay more in taxes than the GDP of many countries.
  - gboudrias 8y ago
    Do they? I thought they were notorious for not paying taxes?
    - mises 8y ago
      Like most rational actors, they try to minimize the tax they pay. However, even a little tax on a trillion-dollar company adds up to a lot. They still pay quite a bit.
    - nodesocket 8y ago
      Despite the rampant reporting by the media about US companies not paying their "fair share" of taxes, as of 2017: "The biggest taxpayer was the most profitable: Apple, which reserved $15.8 billion for income taxes on $59 billion in operating income. Apple reports its effective tax rate as 25.8%" I think it's time to end this falsehood about Apple as I constantly see it posted on HN.
      - kbenson 8y ago
        Do you have a source on that? The wording on that is odd, which makes me want to look into it. It may be my mistake, but I don't recall corporate taxes often called "income taxes" and it's odd how its referred to as they "reserved" it, instead of quote what was paid. It almost sounds like they are referring to taxes withheld from paychecks for employees, which is definitely not the same as what a company pays in corporate taxes in its profit.
      - gnicholas 8y ago
        If your source is this Forbes article [1], it's referring to Apple's domestic tax rate (this is clear because they compare it to the 35% nominal domestic rate). Their worldwide tax rate is lower. Apple is projecting that its worldwide tax rate will drop to 15% now that the new US tax law has taken effect. [2] 1: https://www.forbes.com/sites/christopherhelman/2017/04/18/what-americas-biggest-companies-pay-in-taxes/#d06567d2f515 https://www.forbes.com/sites/christopherhelman/2017/04/18/wh... 2: https://www.fool.com/investing/2018/02/05/heres-how-much-apple-inc-will-gain-from-tax-reform.aspx https://www.fool.com/investing/2018/02/05/heres-how-much-app...
        dv_dt 8y ago
        What bothers me there is, according to my understanding, that taxation laws were changed in the last cuts so that foreign subsidiaries of corporations basically owe no US income tax on their profits (maybe ok, not sure there), but left alone the case if a US citizen relocates elsewhere and makes an income, only the first $xx,000 dollars are not taxed by the US.
        gnicholas 8y ago
        Another inequity: corporations can deduct their SALT, but individuals can only deduct $10k of SALT. So many people derided Citizens United (corporate campaign contributions case) as granting personhood to corporations. But the new tax law actually grants more rights to corporations than to people! Of course, I understand that corporations have always been able to do lots of things that people couldn't do, such as enjoy limited liability. But these are very close analogs, and there aren't any compelling policy reasons as to why corporations should get unlimited SALT deductions if people aren't given this privilege.
      - thisisweirdok 8y ago
        It's not a falsehood. I pay a higher tax rate on some of my income than Apple pays on average.
        nodesocket 8y ago
        While I suspect we are going to have different viewpoints, do you employee hundres of thousands of people, contribute massively to the world economy, and innovate like Apple? Just a point, that while their effective percentage may be lower, they have massive impact, and a $59 billion tax payment.
chillacy 8y ago
As a public company that money will go to shareholders through stock buybacks over time. But a lot of americans do own AAPL through their retirement plans so maybe that counts for something.
KorematsuFred 8y ago
I think your money should be in my account ! Well we can fantasize about other people's money.
- deleted 8y ago
  [deleted]
- thisisweirdok 8y ago
  Found the libertarian. Apple profits hugely from public infrastructure, just like every other company in the country. They pay a disproportionately small amount of taxes.

itissid 8y ago

It's true, their cash on hand tops the GDP of many countries.

briandear 8y ago
They also pay more in taxes than the GDP of many countries.
- gboudrias 8y ago
  Do they? I thought they were notorious for not paying taxes?
  - mises 8y ago
    Like most rational actors, they try to minimize the tax they pay. However, even a little tax on a trillion-dollar company adds up to a lot. They still pay quite a bit.
  - nodesocket 8y ago
    Despite the rampant reporting by the media about US companies not paying their "fair share" of taxes, as of 2017: "The biggest taxpayer was the most profitable: Apple, which reserved $15.8 billion for income taxes on $59 billion in operating income. Apple reports its effective tax rate as 25.8%" I think it's time to end this falsehood about Apple as I constantly see it posted on HN.
    - kbenson 8y ago
      Do you have a source on that? The wording on that is odd, which makes me want to look into it. It may be my mistake, but I don't recall corporate taxes often called "income taxes" and it's odd how its referred to as they "reserved" it, instead of quote what was paid. It almost sounds like they are referring to taxes withheld from paychecks for employees, which is definitely not the same as what a company pays in corporate taxes in its profit.
    - gnicholas 8y ago
      If your source is this Forbes article [1], it's referring to Apple's domestic tax rate (this is clear because they compare it to the 35% nominal domestic rate). Their worldwide tax rate is lower. Apple is projecting that its worldwide tax rate will drop to 15% now that the new US tax law has taken effect. [2] 1: https://www.forbes.com/sites/christopherhelman/2017/04/18/what-americas-biggest-companies-pay-in-taxes/#d06567d2f515 https://www.forbes.com/sites/christopherhelman/2017/04/18/wh... 2: https://www.fool.com/investing/2018/02/05/heres-how-much-apple-inc-will-gain-from-tax-reform.aspx https://www.fool.com/investing/2018/02/05/heres-how-much-app...
      - dv_dt 8y ago
        What bothers me there is, according to my understanding, that taxation laws were changed in the last cuts so that foreign subsidiaries of corporations basically owe no US income tax on their profits (maybe ok, not sure there), but left alone the case if a US citizen relocates elsewhere and makes an income, only the first $xx,000 dollars are not taxed by the US.
        gnicholas 8y ago
        Another inequity: corporations can deduct their SALT, but individuals can only deduct $10k of SALT. So many people derided Citizens United (corporate campaign contributions case) as granting personhood to corporations. But the new tax law actually grants more rights to corporations than to people! Of course, I understand that corporations have always been able to do lots of things that people couldn't do, such as enjoy limited liability. But these are very close analogs, and there aren't any compelling policy reasons as to why corporations should get unlimited SALT deductions if people aren't given this privilege.
    - thisisweirdok 8y ago
      It's not a falsehood. I pay a higher tax rate on some of my income than Apple pays on average.
      - nodesocket 8y ago
        While I suspect we are going to have different viewpoints, do you employee hundres of thousands of people, contribute massively to the world economy, and innovate like Apple? Just a point, that while their effective percentage may be lower, they have massive impact, and a $59 billion tax payment.

chillacy 8y ago

As a public company that money will go to shareholders through stock buybacks over time. But a lot of americans do own AAPL through their retirement plans so maybe that counts for something.

KorematsuFred 8y ago

I think your money should be in my account ! Well we can fantasize about other people's money.

deleted 8y ago
[deleted]
thisisweirdok 8y ago
Found the libertarian. Apple profits hugely from public infrastructure, just like every other company in the country. They pay a disproportionately small amount of taxes.