{"id":78890,"date":"2016-02-09T17:15:45","date_gmt":"2016-02-09T22:15:45","guid":{"rendered":"http:\/\/rbach.net\/blog\/index.php\/"},"modified":"2021-08-17T13:03:33","modified_gmt":"2021-08-17T17:03:33","slug":"trivial-taxes-for-tech-titans","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/trivial-taxes-for-tech-titans\/","title":{"rendered":"Trivial Taxes for Tech Titans"},"content":{"rendered":"

\"Trivial<\/a>Just in time for the start of the U.S. tax season, reports have surfaced that should piss off most tax-paying Americans<\/strong>. The Business Insider<\/a><\/em> is reporting<\/a> that most of the American tech giants<\/strong>, like Apple, Google and Microsoft are not paying their share of taxes<\/strong>.<\/p>\n

\"the<\/p>\n

The U.S. corporate tax rate is about 35%, but according to an analysis by financial research website WalletHub<\/a> and charted by Statista<\/a>, the effective tax rate paid by U.S. tech companies, like Apple<\/a> (AAPL<\/a>), Microsoft<\/a> (MSFT<\/a>), and Google<\/a> (GOOG<\/a>), was well below the 28.6% average rate<\/strong> paid by the 100 biggest S&P companies.<\/p>\n

Facebook<\/a><\/strong> (FB<\/a>) was the exception with an effective tax rate of 41%, but the social networking company has paid a higher rate in past years and recouped some of the money in tax deductions<\/strong>, according to Quartz<\/em><\/a>.<\/p>\n

\"Infographic:<\/a><\/p>\n

One way these tech giants are lowering their tax bills is by stashing most of their profits overseas, where lower international tax rates apply. Despite claims<\/a> by Apple<\/strong> CEO Tim Cook, that Apple pays all of its taxes, Apple, for example, keeps most of its cash offshore, and openly says it’s keeping it overseas to avoid their U.S. corporate tax bills<\/strong>.<\/p>\n

\"Tax<\/a>The New York Times<\/a> <\/em>recently reported<\/a> that Apple made a deal<\/strong> with Italian tax authorities<\/strong> over a dispute about how much tax the iPad maker should have paid Italy. A spokesman for Italy<\/a>\u2019s tax authority declined to comment to the NYT<\/em> on the amount of owed taxes but the BBC<\/em><\/a> reports<\/a> that the figure is \u20ac318m ($348m<\/strong>).<\/p>\n

The investigation found that since 2013, Apple had moved roughly $1.1 billion in revenue<\/strong> from its Italian operations through an Irish subsidiary<\/a><\/strong> to lower the taxes that the company was obliged to pay under the 27.5% corporate income tax<\/a> rate in Italy.<\/p>\n

The NYT<\/em> says Ireland\u2019s corporate tax rate, at 12.5%, is one of the lowest in the Western world, compared with 35%, before deductions, in the United States. Of course, Irish officials deny that the low-tax structure represents unfair competition.<\/p>\n

rb-<\/em><\/strong><\/p>\n

The Tech Titans have long lusted after a tax cut. I cover the 2011 meeting where Tech giants Facebook<\/strong>, Mark Zuckerberg<\/strong>, Apple, Steve Jobs<\/strong>, Yahoo<\/a><\/strong>, Cisco<\/a> (CSCO<\/a>), Twitter<\/a><\/strong> (TWTR<\/a>), Oracle<\/a> (ORCL<\/a>), Netflix<\/a><\/strong>, Google, <\/strong>and venture capitalists <\/strong>lobbied Obama for a tax cut on $1 trillion of profits they’ve stashed overseas.<\/em><\/p>\n

Related articles<\/h6>\n