Powdererd Wig Society
By Thomas Madison
The executives at Apple, being the shrewd businessmen (don’t be offended, ladies, the term is generic) they are, have agreed to terms with China Mobile to sell its newest generation 4G iphone and mobile network, which could potentially bring Apple 700 million new subscribers, seven times the number of subscribers of Verizon Wireless, the largest carrier in the US.
The bigger story, in my opinion, is how this new windfall for Apple will be viewed and treated by American tax collectors, especially those in our own Congress, the IRS, and the state of California. As the world knows by now, the chief characteristic of an American politician is getting his (again, generic, ladies) grubby little hands into the pockets of every honest taxpayer he can find. And there never has been and there never will be enough tax money to satisfy the lumbering beast that we Americans know as “government.” At every level, its predacious appetite is insatiable.
Like fellow California tech companies, Yahoo and Google, Apple has moved its operation offshore, to Ireland, to avoid onerous state and federal taxes, which amounts to billions of dollars in lost tax revenue to greedy American tax collectors.
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However, Apple is being challenged by the carnivorous gargoyles on Capitol Hill, who believe they deserve a split of Apple’s hard-earned money. It appears Apple overlooked a key detail in the Irish tax avoidance maneuver that Washington lawmakers have named the “Double Irish,” which stipulates that the entity enjoying favorable Irish tax treatment must actually be managed in Ireland, not just a shell company. Unless Apple can find some clever legal remedy, I’m sure they will be relocating key personnel and staff post haste from Cupertino to Cork, where they currently have a European subsidiary.
For a large corporation the savings realized by moving its operation to Ireland are significant. Google avoids two billion dollars a year in American taxes thanks to the “Double Irish.” I say good for them. If the United States can’t be competitive in the corporate tax arena then they don’t deserve the contributions and a share in the prosperity of companies like Apple, Google, and Yahoo. It’s just business. If Larry makes a widget the same quality but cheaper than Dave’s widget, guess who gets the business? Likewise, corporate taxes. It’s just business.