Great article on corporations not paying their fair share of taxes. I think it just scratches the surface. And how easy it is for these corporations to get out of it.
https://www.theguardian.com/technology/2016/may/05/apple-taxes-cupertino-mayor-infrastructure-plan
Cupertino´s Mayor: Apple Abuses Us By Not Paying Taxes
Barry Chang is stuck between Apple on one side not paying for his infrastructure proposal and frustrated citizens on the other who see their roads too crowded.
The last time the mayor of Cupertino walked into
Apple – the largest company in his small Californian town and, it so happens, the most valuable company in the world – he hoped to have a meeting to talk about traffic congestion.
Barry Chang barely made it into the lobby when Apple’s security team surrounded and escorted him off the property.
“They said ‘you cannot come in, you’re not invited’. After that I left and have not gone back,” said an exasperated Chang, who’s been mayor since December 2015 and had approached the computing firm when he was serving on the city council three years ago.
Many in Cupertino, a 60,000-person town in the heart of Silicon Valley, are beginning to organize around their overburdened city. They claim the region is struggling with aging infrastructure and booming companies whose effective tax rate is often quite low. Frustrated by traffic and noise,some in Cupertino are
trying to put a stop to more development, which they argue brings more congestion on the roads, parking and train system. But Chang says limiting new development would damage the regional economy and that the real solution should be higher taxes on the wealthy and companies such as Apple.
In response to Chang’s pro-development efforts, a group called
Cupertino Citizens for Sensible Growth is working
to recall him for failing “to fulfill his fiduciary duty to Cupertino citizens”. He says he’s “not afraid” and is
running for California’s state assembly.
Getting local politicians to battle Apple is hard, Chang said. He recently proposed that Apple – which is building a massive new campus its own employees nicknamed the
Death Star, or more favorably,
The Spaceship – should give $100m to improve city infrastructure. To move on the proposal, Chang only needed to get a single vote ‘yes’ among the three other eligible council members. He failed to get that vote.
“This American politics. This so-called democracy,” Chang said, recalling the unanimous ‘no’ vote. “Apple is such a big company here. The council members don’t want to offend them. Apple talks to them, and they won’t vote against Apple. This is the fact.”
Apple pays
a 2.3% effective tax rate on its $181bn in
cash held offshore, according to Citizens for Tax Justice, a not-for-profit research group focusing on tax policy. Through a series of
well-documented offshore manipulations with saucy-sounding names such as the Double Irish with a Dutch Sandwich, the industry giants shield themselves off from the theoretically
35% federal corporate tax rate. Citizens for Tax Justice estimates that
Apple would owe $59.2bn in US taxes if the money weren’t funneled into offshore shell accounts.
Criticism over the company’s offshore tax schemes has become more pointed in recent months, both locally in Cupertino and from Apple’s own staff. Steve Wozniak, Apple’s co-founder,
said the company should pay a 50% tax: “Jobs started Apple Computers for money, that was his big thing and that was extremely important and critical and good. ... [But] we didn’t think we’d be figuring out how to go off to the Bahamas and have special accounts like people do to try to hide their money.”
“They’re all just as good at engineering their own tax rates as they are at engineering new technology,” said Ron Eckstein from advocacy group Americans for Tax Fairness.
It’s doubly upsetting for activists in Silicon Valley, who say that Apple and Google’s tax arrangements conflict with the way they present themselves as companies that are doing good.
(cont)