Chris Oldroyd, writing for iMore:
“Apple is paying less than 2% tax on its profits from overseas sales which are thought to be in the region of 37 billion dollars. The details were revealed in Apple’s 10K filing which was presented to the US Securities and Exchange Commission. The news comes for UK newspaper The Guardian”
… and those profits cannot be re-patriated to the US without incurring our 35% corporate tax rate. Translation: income that cannot be re-invested in new product development or employment.
Apple isn’t alone in this. The US corporate tax rate is the highest among developed nations. Any company with multi-national sales faces the same choice: book the income here and pay through the nose or keep the money overseas and pay less. What would you do?
Both presidential candidates propose cutting the corporate tax rate to 25%-28%, depending upon industry. Let’s see if either of those plans make it into next year’s tax and budget agreement.