Paul L. Caron

Monday, February 13, 2012

Sullivan: Apple Paid a Lower Tax Rate in 2011 Than Mitt Romney

Tax Analysts Martin A. Sullivan (Tax Analysts), Apple Reports High Rate but Saves Billions on Taxes, 134 Tax Notes 777 (Feb. 13, 2012):

By taking advantage of lax U.S. transfer pricing rules, Apple Inc., the world’s most valuable company, cut its federal tax bill by billions of dollars in 2011. Moreover, by taking advantage of flexible accounting rules, the company masked its tax avoidance by reporting a relatively high effective tax rate.

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Comments on this from the great unwashed:

FARK: Romney pays 14% tax rate: THE GIBBET'S TOO GOOD FOR THE EVIL PLUTOCRAT. Apple pays 12.8% tax rate: (iCrickets)

Posted by: Woody | Feb 13, 2012 7:52:52 PM

I am far from being a tax expert but, generally, don't consumers pay all corporate business taxes via the embedded costs of those taxes within the costs of goods and services purchased?

Many years ago a Washington DC beltway think-tank attempted to estimate the actual tax burden placed upon the average USA household.

Extremely difficult to do.

Even determining what an actual tax vice a "user fee" was problematic.

Fuel/gas taxes determined to be a user fee for various reasons.

Local, state and federal taxes taken into consideration.

Hidden taxes such as the property tax indirectly paid for by renters though paid by the house owners added to renter's taxes.

Of course, house owner receives benefits from writing off property.

Thus immense difficulty estimating actual taxes but the poor citizens do pay a rather large share of their minimal income towards various taxes nullifying the lamentations of higher income earners.

Final average estimate in a worst-case scenario? Upwards of 75 per cent tax bite when hidden taxes included (mostly found in cost of goods and services).

Lower best guestimate was around 60 per cent.

One sad conclusion was that USA taxpayers received fewer benefits from their taxes than the taxpayers in ALL European countries.

The cost of our government and assisting corporate USA does not come cheap!!!

Posted by: Obbop | Feb 13, 2012 7:23:49 PM

So what Paul, they both did it legally. Furthermore just because corporations are people too my friend doesn't mean that they are individuals like Romney. Fix the tax code

Posted by: Perry Clease | Feb 13, 2012 6:52:45 PM

The difference between Apple and Mitt Romney is that Apple actually produces products used worldwide to facilitate business and progress. The only thing Mitt Romney produces is a wake of bought-out, liquidated, bankrupt companies, and a trail of unemployment follows his every step.

Posted by: Tom C | Feb 13, 2012 1:07:36 PM

IT is about damn time someone calls out the liberals with their unending drive to lower corp tax rates!

Posted by: Tymast | Feb 13, 2012 12:34:18 PM

Good for him!

Posted by: The MaD HaCkER | Feb 13, 2012 12:32:18 PM