Should Apple pay more taxes? Create more US jobs?
TweetFollow Us on Twitter

Should Apple pay more taxes? Create more US jobs?

Economist Martin Sullivan says Apple is no better than other multinationals that have been "painted as corporate tax dodgers by major media outlets." This would seem to contradict a Nov. 3 report in which Citizens for Tax Justice estimated that Apple paid an average effective U.S. tax rate of 31% between 2008 and 2010.

That's close to the ostensible corporate income tax rate of 35%, notes the "San Francisco Chronicle" (http://macte.ch/coRY2). Out of 280 companies in the study, only 49 had a higher effective tax rate than Apple.

However, Sullivan says "despite outward appearances, Apple enjoys enormous foreign tax benefits, just as GE and Google do. By taking advantage of lax U.S. and foreign tax laws, Apple has been able to book a large share of its foreign profits in low-tax jurisdictions and greatly reduce its tax liability in the United States and other major countries where it conducts most of its real business activity." He estimates that by shifting profits overseas, Apple is costing the U.S. government more than US$1 billion a year.

Sullivan says that most of Apple's intellectual property is created in the United States and if most of Apple's product development takes place here, the company ought to book a lot more than 30% of its profits and pay tax on it here. However, Apple books most of its overseas profits in countries with zero or near-zero corporate tax rates, he adds.

None of this, by the way, is illegal. So naturally most big companies do it. But with the US's economy in the toilet, perhaps it's time to revisit policies in which companies can shift a disproportionate share of their profits overseas.

And what of moving more of its manufacturing back to the US? Alas, that's not going to happen as long as most tech companies keep prices down by working with factories in China and elsewhere. In all fairness, it has to be mentioned that Apple does create lots of jobs here in the US of A.

A study by researchers at UC Irvine found that the iPod was responsible for creating nearly 14,000 jobs in the U.S. and another 27,000 abroad, Bill Snyder of "InfoWorld" recently wrote. Of course, those numbers are a few years old.

"Sure, the iPod, iPad, and iPhone are assembled in Asia. But the real value in those products was added in Cupertino, Calif. -- part of Silicon Valley -- where they were invented, and in the offices and cubicles of developers around the country who crank out the apps that make the iPad and the iPhone so useful," Snyder writes. "The offshore jobs are mostly in low-wage manufacturing, while the jobs in the states are more evenly divided between high-wage engineers and managers and lower-wage retail and nonprofessional workers. As a result of this and of cross-country wage differences, U.S. workers earned a total of $753 million, while workers outside the country earned $318 million, the researchers found."

But is it possible that Apple could and should do more? Donald L. Bartlett and James B. Steele -- contributing editors at "Vanity Fair" -- think so in an op-ed piece for "The Philadelphia Inquirer" (http://macte.ch/8SfhA).

"After only one generation, all the Apple manufacturing jobs in America disappeared, as the work of building and assembling the machines was turned over to laborers in sweatshops in China and other countries," they write. "Jobs that should have provided employment for Americans for decades to come were terminated."

So should Apple pay more taxes? Should the company provide more manufacturing jobs in the US? Could it remain profitable if it did?

If I had the answers, I'd be a highly paid economic advisor. Still, with so many people without work in the US, it would be great to see companies like Apple making efforts to jumpstart the American economy and increase the number of jobs for US citizens.

I'd pay a few more bucks for an Apple product to make this happen? Would you?

-- Dennis Sellers

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Combo Quest (Games)
Combo Quest 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Combo Quest is an epic, time tap role-playing adventure. In this unique masterpiece, you are a knight on a heroic quest to retrieve... | Read more »
Hero Emblems (Games)
Hero Emblems 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: ** 25% OFF for a limited time to celebrate the release ** ** Note for iPhone 6 user: If it doesn't run fullscreen on your device... | Read more »
Puzzle Blitz (Games)
Puzzle Blitz 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Puzzle Blitz is a frantic puzzle solving race against the clock! Solve as many puzzles as you can, before time runs out! You have... | Read more »
Sky Patrol (Games)
Sky Patrol 1.0.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.1 (iTunes) Description: 'Strategic Twist On The Classic Shooter Genre' - Indie Game Mag... | Read more »
The Princess Bride - The Official Game...
The Princess Bride - The Official Game 1.1 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1 (iTunes) Description: An epic game based on the beloved classic movie? Inconceivable! Play the world of The Princess Bride... | Read more »
Frozen Synapse (Games)
Frozen Synapse 1.0 Device: iOS iPhone Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Frozen Synapse is a multi-award-winning tactical game. (Full cross-play with desktop and tablet versions) 9/10 Edge 9/10 Eurogamer... | Read more »
Space Marshals (Games)
Space Marshals 1.0.1 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.1 (iTunes) Description: ### IMPORTANT ### Please note that iPhone 4 is not supported. Space Marshals is a Sci-fi Wild West adventure taking place... | Read more »
Battle Slimes (Games)
Battle Slimes 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: BATTLE SLIMES is a fun local multiplayer game. Control speedy & bouncy slime blobs as you compete with friends and family.... | Read more »
Spectrum - 3D Avenue (Games)
Spectrum - 3D Avenue 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: "Spectrum is a pretty cool take on twitchy/reaction-based gameplay with enough complexity and style to stand out from the... | Read more »
Drop Wizard (Games)
Drop Wizard 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Bring back the joy of arcade games! Drop Wizard is an action arcade game where you play as Teo, a wizard on a quest to save his... | Read more »

Price Scanner via MacPrices.net

Our MacBook Price Trackers will show you the...
Our Apple award-winning MacBook Price Trackers are continually updated with the latest information on prices, bundles, and availability for 16″ and 14″ MacBook Pros along with 13″ and 15″ MacBook... Read more
Amazon is offering a 10% discount on Apple’s...
Don’t pay full price! Amazon has 16-inch M4 Pro MacBook Pros (Silver and Black colors) on sale today for 10% off Apple’s MSRP. Shipping is free. These are the lowest prices currently available for 16... Read more
13-inch M4 MacBook Airs on sale for $150 off...
Amazon has new 13″ M4 MacBook Airs on sale for $150 off MSRP right now, starting at $849. Sale prices apply to most colors and configurations. Be sure to select Amazon as the seller, rather than a... Read more
15-inch M4 MacBook Airs on sale for $150 off...
Amazon has new 15″ M4 MacBook Airs on sale for $150 off Apple’s MSRP, starting at $1049. Be sure to select Amazon as the seller, rather than a third-party: – 15″ M4 MacBook Air (16GB/256GB): $1049, $... Read more
Amazon is offering a $50 discount on Apple’s...
Amazon has Apple’s 11th-generation A16 iPads in stock on sale for $50 (or a little more) off MSRP this week. Shipping is free: – 11″ 11th-generation 128GB WiFi iPads: $299 $50 off MSRP – 11″ 11th-... Read more
Clearance 13-inch M1 MacBook Airs available f...
Walmart has clearance, but new, Apple 13″ M1 MacBook Airs (8GB RAM, 256GB SSD) available online for $649, $360 off original MSRP, in Space Gray, Silver, and Gold colors. These are new MacBooks for... Read more
iPad minis on sale for $100 off Apple’s MSRP...
Amazon is offering $100 discounts (up to 20% off) on Apple’s newest 2024 WiFi iPad minis, each with free shipping. These are the lowest prices available for new minis among the Apple retailers we... Read more
AirPods Max headphones on sale for $479, $70...
Amazon has AirPods Max with USB-C on sale for $479.99 in all colors. Shipping is free. Their price is $70 off Apple’s MSRP, and it’s the lowest price available today for AirPods Max. Keep an eye on... Read more
14-inch M4 Pro/M4 Max MacBook Pros on sale th...
Don’t pay full price! Get a new 14″ MacBook Pro with an M4 Pro or M4 Max CPU for up to $320 off Apple’s MSRP this weekend at these retailers…they are the lowest prices available for these MacBook... Read more
Get a 15-inch M4 MacBook Air for $150 off App...
A couple of Apple retailers are offering $150 discounts on new 15″ M4 MacBook Airs this weekend. Prices at these retailers start at $1049: (1): Amazon has new 15″ M4 MacBook Airs on sale for $150 off... Read more

Jobs Board

All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.