Tuesday, May 31, 2011
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.)