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This stuck out like a sore thumb to me: Q4 2024: Income before provision for income taxes $29.610 billion, Provision for income taxes $14.874 billion Q4 2025:

by lapcat 1y ago

This stuck out like a sore thumb to me: Q4 2024: Income before provision for income taxes $29.610 billion, Provision for income taxes $14.874 billion Q4 2025: Income before provision for income taxes $32.804 billion, Provision for income taxes $5.338 billion [EDIT:] The 2024 taxes were actually an aberration. "the one-time charge recognized during the fourth quarter of 2024 related to the impact of the reversal of the European General Court’s State Aid decision" https://www.apple.com/newsroom/2024/10/apple-reports-fourth-quarter-results/ https://www.apple.com/newsroom/2024/10/apple-reports-fourth-...

nerdponx 1y ago
Enough to pay for everything DOGE and the Trump admin cut in 2025, assuming a big chunk of that is US taxes.
- aauchter 1y ago
  Effective US tax rate is higher in 2025. The 2024 tax number was inflated due to a one time payment relating to Ireland which actually dates back to 2016.
nomel 1y ago
Are different sources of income taxed differently? Could it partly be from some change in income sources? Seems Services is more significant this quarter.
- Psillisp 1y ago
  Yes Tax Avoidance strategies are inversely correlated to enforcement efforts. What could have possibly changed…
- jdminhbg 1y ago
  No, the 2024 number is goosed by paying a big back tax bill after a court decision in the EU.
Psillisp 1y ago
[flagged]
- deleted 1y ago
  [deleted]
hdgvhicv 1y ago
[flagged]
aauchter 1y ago
Their 2025 US taxes are actually higher. In Q4 2024 "Apple paid a one-time income tax charge of $10.2 billion in order to resolve the tax issue with Ireland, which dates to 2016." https://finance.yahoo.com/news/apple-profit-drops-36-tech-205041625.html https://finance.yahoo.com/news/apple-profit-drops-36-tech-20...
curiouscats 1y ago
Actually it was a huge tax addition in 2024 (from Europe over dispute about how Ireland had taxed Apple for many years). In 2024 Apple added 14.4 billion in additional taxes accrued over many years.
FredPret 1y ago
Corporate income tax is one of those ideas that are immensely popular politically ("someone who is not me will pay billions to benefit me? yay!") but not supported by economic theory or real economic outcomes. Rent control / other price controls is another one ("No more rent increases for me, yay!"). Personal income taxes are a better choice according to [0] and that makes sense if you think about it. Let companies go wild creating wealth; eventually the company matures, growth slows, and instead of reinvesting, the money mostly gets paid out to employees and owners as salaries, dividends, or stock buybacks. That's the point where it's most efficient to tax it. [0] https://www.economicsobservatory.com/which-taxes-are-best-and-worst-for-growth https://www.economicsobservatory.com/which-taxes-are-best-an... [1] https://taxfoundation.org/taxedu/primers/primer-not-all-taxes-are-created-equal/ https://taxfoundation.org/taxedu/primers/primer-not-all-taxe...
- aauchter 1y ago
  Correct. Corporate income tax is really a tax on shareholders (alternative to paying tax is paying shareholders a dividend). The corporate tax rate hits all owners regardless of income/wealth. That includes pension funds, 401ks, small investors, etc. Proponents of progressive taxes should be against corporate tax and in favor of income tax, property tax, etc.
  - FredPret 1y ago
    It also takes money away from the corporation, when they should be doing one of these: - spend their profits to try and grow, but fail; thus spreading their capital into the rest of the economy - spend their profits to try and grow, and succeed; not only spreading capital but creating new wealth that will eventually work its way around to the shareholders - return it to shareholders, where it gets taxed
    - what 1y ago
      Isn’t that how it already works? They can spend all of their profits or pay taxes on profit and sit on the rest?

by lapcat 1y ago

nerdponx 1y ago

Enough to pay for everything DOGE and the Trump admin cut in 2025, assuming a big chunk of that is US taxes.

aauchter 1y ago
Effective US tax rate is higher in 2025. The 2024 tax number was inflated due to a one time payment relating to Ireland which actually dates back to 2016.

nomel 1y ago

Are different sources of income taxed differently? Could it partly be from some change in income sources? Seems Services is more significant this quarter.

Psillisp 1y ago
Yes Tax Avoidance strategies are inversely correlated to enforcement efforts. What could have possibly changed…
jdminhbg 1y ago
No, the 2024 number is goosed by paying a big back tax bill after a court decision in the EU.

Psillisp 1y ago

[flagged]

deleted 1y ago
[deleted]

hdgvhicv 1y ago

[flagged]

aauchter 1y ago

Their 2025 US taxes are actually higher. In Q4 2024 "Apple paid a one-time income tax charge of $10.2 billion in order to resolve the tax issue with Ireland, which dates to 2016." https://finance.yahoo.com/news/apple-profit-drops-36-tech-205041625.html https://finance.yahoo.com/news/apple-profit-drops-36-tech-20...

curiouscats 1y ago

Actually it was a huge tax addition in 2024 (from Europe over dispute about how Ireland had taxed Apple for many years). In 2024 Apple added 14.4 billion in additional taxes accrued over many years.

FredPret 1y ago

Corporate income tax is one of those ideas that are immensely popular politically ("someone who is not me will pay billions to benefit me? yay!") but not supported by economic theory or real economic outcomes. Rent control / other price controls is another one ("No more rent increases for me, yay!"). Personal income taxes are a better choice according to [0] and that makes sense if you think about it. Let companies go wild creating wealth; eventually the company matures, growth slows, and instead of reinvesting, the money mostly gets paid out to employees and owners as salaries, dividends, or stock buybacks. That's the point where it's most efficient to tax it. [0] https://www.economicsobservatory.com/which-taxes-are-best-and-worst-for-growth https://www.economicsobservatory.com/which-taxes-are-best-an... [1] https://taxfoundation.org/taxedu/primers/primer-not-all-taxes-are-created-equal/ https://taxfoundation.org/taxedu/primers/primer-not-all-taxe...

aauchter 1y ago
Correct. Corporate income tax is really a tax on shareholders (alternative to paying tax is paying shareholders a dividend). The corporate tax rate hits all owners regardless of income/wealth. That includes pension funds, 401ks, small investors, etc. Proponents of progressive taxes should be against corporate tax and in favor of income tax, property tax, etc.
- FredPret 1y ago
  It also takes money away from the corporation, when they should be doing one of these: - spend their profits to try and grow, but fail; thus spreading their capital into the rest of the economy - spend their profits to try and grow, and succeed; not only spreading capital but creating new wealth that will eventually work its way around to the shareholders - return it to shareholders, where it gets taxed
  - what 1y ago
    Isn’t that how it already works? They can spend all of their profits or pay taxes on profit and sit on the rest?