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Tuesday, May 31, 2011

Tax Cheating: There's an App for That

Apple PC World, Dancing in Apple Retail Stores? This Time in Protest:

There may be some dancing in the aisles next weekend at Apple retail stores around the country, but not because the consumer electronics powerhouse is launching a hot new product.

A group that seeks to draw attention to corporations that shelter profits overseas to cut their U.S. income tax burden is organizing protests for June 4 at Apple stores.

The group, US Uncut, says the so-called "Dance-Ins" at Apple stores are meant to grab the attention of 20-somethings who love Apple products but believe that all corporations should pay their fair share of taxes.

Apple and other tech companies, including Cisco, Adobe, Google, and Microsoft, support legislation that includes a proposed tax holiday. The Freedom to Invest Act of 2011, H.R. 1834, would let corporations pay a 5.25 percent tax rate on money "repatriated" to the U.S. from foreign countries. The bipartisan bill, introduced May 11, proposes a temporary tax holiday for corporations who refuse to pay the 35% corporate tax rate.

Its proponents say that a similar measure passed in 2004 brought $312 billion in capital back to the United States through such companies as Oracle, Qualcomm, and Adobe. It generated more than $34 billion in tax revenue, according to a 2009 study.

But US Uncut, while noting that Apple does pay taxes, says it is disappointed in Apple's support for what the activist group believes amounts to corporate tax amnesty.

(Hat Tip: Ann Murphy.)

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Comments

Instead of wasting time dancing in an Apple store, why not try contacting your congressmen or voting for different politicians? Don't protest a company that's obeying the tax law, protest the tax law and work to get it changed. Of course, these are probably the same people that think a deferred tax asset amounts to the same thing as a tax refund, so I'm sure they'll be relatively ignored by anyone who knows anything about taxes or takes the time to properly research what they're talking about.

Posted by: Tyler | May 31, 2011 3:00:52 PM

Isn't it funny that people who are so PC are protesting in Apple stores?

Posted by: Woody | May 31, 2011 3:31:31 PM

Well moving profits overseas isn't really "tax cheating" (assuming they do it legally).
.
Tax cheating would be openly not paying your taxes, like many of the high ranking Democrats in Washington.
http://www.latimes.com/news/opinion/commentary/la-oe-goldberg3-2009feb03,0,49616.column

Posted by: bonzo | May 31, 2011 10:48:16 PM

I don't see why people can't ask Congress to change the laws and also protest companies that engage in tax minimization techniques with which they disagree.

Isn't that how the free market is supposed to work? If people don't like a company's practices, identifying the practice to make other people aware of it and voting with their purchasing dollars are legitimate tools to place pressure on firms to change the way that they do business.

I would think that people who decry taxes as governmental coercion would welcome this kind of tactic.

Posted by: Marketplace | Jun 1, 2011 7:09:14 AM

@Marketplace: Did you really just advocate for subjectively prohibiting "tax minimization"? Why don't you just give IRS employees taser guns and allow them to tase anyone whom they seem fit for tasing. Obviously, my snippy comments are an overstatement, but do you really want to go down that slippery slope of determining what is and is not "tax minimization"? You might as well quadruple the IRS's budget, because that is what it would take to try and enforce such a concept. Why not try the smarter and more cost-effective method in simply trying to close the tax loopholes for these corporations.

@Tyler: I thought the same thing. We must not be hip or cool enough though, because apparently dancing can solve all of the world's problems. At least that is what I understand from television's "So you think you can dance" and "America's Best Dance Crew," and the movie "You got served." I guess going through the normal channels of bringing about change (i.e., contacting your Congressman or Congresswoman) are outdated for today's youth.

Posted by: Lt. Dangle | Jun 1, 2011 9:07:48 AM