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Content Any Way U Want It!

BG Falcon Media

Content Any Way U Want It!

BG Falcon Media

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September 29, 2023

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Apple under scrutiny over tax evasion

About a month ago, I woke up as usual and tuned in to Bloomberg News to find Tim Cook, CEO of Apple, testifying before Congress.

Now, the first thing that came to mind was, “wow!” I never knew what Tim Cook looked like in a suit. This feeling was followed by confusion, as to why Apple was in Washington, D.C. to begin with.

The reality behind the fact is Apple is being investigated over allegations of tax evasion, which most people know as bypassing U.S. corporate tax laws. The company has expanded its operations in Ireland which has boasted a 12.5 percent corporate tax rate unlike the U.S. 30 percent.

To have their funds taxed at this lower rate, companies claim they have intellectual property overseas. Therefore, the money they pay only gets taxed by the country hosting this intellectual property and will only be re-taxed if the funds are repatriated and brought back into the United States.

Is this legal? Absolutely, and it’s been done for the past several years by big corporations including Google. None of this is new, and it until now nobody seemed to care.

So, what’s the deal with picking on Apple?

I personally feel bad for the company. The past 12 months have hit Apple hard as it faced growing competition in the smart phone market and witnessed its stock price getting cut nearly in half.

iPhone profit margins have dropped from 44 percent to 38 percent and the company has lost 3 percent of its smart phone market share to Samsung.

In truth, Apple is the last great American company that continues to innovate and people should remember this whenever they feel like scrutinizing the company.

Now, I’m not against regulations in our corporate tax structure. Taxes serve a meaningful purpose, when applied and used efficiently, or in other words not redistributed towards welfare. As we’ve learned from the 2008 crisis, regulations are necessary for all forms of businesses.

Why do our politicians seem to focus so much energy on corporate tax reform? We have enough problems as it is. The last time I voted, I was more concerned over why stem cell research is still thought of as controversial, or why same sex marriage isn’t fully accepted. These are the leaps and bounds that will change our image worldwide, not our tax rate.

Unfortunately, today’s political system seems to emphasize what’s in the interest of the politicians looking to get reelected. As a result many of us have lost faith in our own government’s lawmaking ability.

Both parties have fallen under scrutiny and the only disappointment has been that neither of them has really been able to compromise.

Since they’re already having fun with calculating interest and tax, I’d like to see our politicians deal with student loans and the unnecessary interest rates that accommodate them. After all, as long as loopholes exist (which is forever) then every company will find a way to utilize them, which is perfectly legal.

So why not focus on improving the lives of people who don’t have much choice, like the average 18 year old who looks to pursue a higher education but is held back by funding.

I’m confident that the future for corporate America is bright regardless of tax laws. I can’t say the same for many Americans. Today’s world is global, and every industry is competitive.

In order to win and come out ahead, businesses have to think outside of the box, and people have to be clever. We can’t do it alone. This nation is strengthened by its diversity and global reach.

Only when united about our policies and values will we be able to make a difference in the world and leave a dent.

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