This post is from the RenouceUScitizenship blog.
The issue according to Levin: The Opening Statement
Should the U.S. be governed by law or by Levin?
Tuesday, May 21, 2013
Today the Subcommittee holds a second hearing to examine how U.S.-based multinational corporations use loopholes in the tax code to move profits to offshore tax havens and avoid paying U.S. taxes. In September, we examined two case studies: (1) a study of how Microsoft Corporation shifted profits on U.S. sales to U.S. customers from the United States to an offshore tax haven; and (2) a study of how Hewlett-Packard devised a “staggered foreign loan program” to effectively repatriate offshore profits to the United States without paying U.S. taxes that are supposed to follow repatriation.
Today the Subcommittee will focus on how Apple effectively shifts billions of dollars in profits offshore, profits that under one section of the tax code should nonetheless be subject to U.S. taxes, but through a complex process avoids those taxes.
Our purpose with these hearings is to shine a light on practices that have allowed U.S.-based multinational corporations to amass an estimated $1.9 trillion in profits in offshore tax havens, shielded from U.S. taxes. One study has estimated that offshore earnings stockpiled by S&P 500 companies using these techniques have increased 400 percent in the last decade.
It’s clear that Apple is acting according to and in compliance with the law. Yet, Carl has a problem with the fact that Apple is compliance with a tax code created by Congress in response to special interests. U.S. democracy is a marketplace where the creation of laws are bought and sold. The Levin’s of the world are completely responsible for the laws of the country. Yet, Levin is upset about the effects of Apple’s compliance with the very laws that the Levins have made. How insane is this? Really, has this man gone completely out of his mind? With Carl, you just can’t win. There are two types of corporations – non DNA persons – that Carl has a problem with.
Type 1: The U.S. corporation that DOES NOT comply with U.S. tax laws.
Type 2: The U.S. corporation that DOES comply with U.S. tax laws.
The law be dammed! The test of good Americanness is now whether you do what Carl wants.
What’s a poor U.S. corporation to do?
The issue according to Rand Paul:
Should the U.S. be governed by Levins or by laws?
At the 2 minute mark Rand Paul compliments Canada’s tax laws:
“Our corporate tax code is double Canada’s. I never thought I would be complimenting Canada for their tax code. … Instead of complaining that there’s is too low, why not realize ours is too high.”
This is a fantastic presentation. #StandwithRand
To be governed by the law is to be governed by the Levin
Now see Tim Cook the Apple CEO – Apple is in complete compliance with all U.S. laws. So, what is Tim Cook doing there anyway?
Raw video: Tim Cook defends Apple’s tax accounting soa.li/A2lb3dh – How can Levin expect any corp to pay world’s highest taxes?
— U.S. Citizen Abroad (@USCitizenAbroad) May 22, 2013
Government of laws or government of Levins? What do you think?
@USCitizen…
Thanks for posting that video, as I have been tweeting it a bit today….
Also, just saw this,
America wakes up to FATCA
http://www.international-adviser.com/news/tax—regulation/america-wakes-up-to-fatca
US institutions and individuals are becoming increasingly aware of the existence of the Foreign Account Tax Compliance Act, which received little media coverage in the States until a US senator earlier this month introduced a bill to repeal certain of the act’s provisions, arguing that they infringed “upon basic constitutional rights”.
Meanwhile, a petition has appeared on the website of MoveOn.org, a liberal/progressive public policy advocacy group which has had a history of championing Democratic candidates and liberal causes, calling for FATCA’s repeal. The petition aims to collect 2,000 signatures (it has 1,950), and will be sent to the US House of Representatives and President Obama.
http://petitions.moveon.org/sign/repeal-fatca
Don’t quite know how to react to his back-handed compliment of Canada. One has to consider the source, I suppose.
@Just Me
That link to the petition might be worthy of it’s own post to bring folks attention to it? Just an idea ….
From Caplin & Drysdale’s News and Events page:
“Bloomberg Interviews David Rosenbloom Regarding Apple’s Tax Strategy
May 21, 2013, Bloomberg
Bloomberg spoke with H. David Rosenbloom concerning the legality of Apple’s tax avoidance strategies. Mr. Rosenbloom commented that there is nothing illegal with benefitting from tax loopholes and “Congress has created a very intricate system and companies can be expected to take advantage of it.” He further remarked that “Apple will most likely use this occasion to push for a territorial system and perhaps a lower corporate tax.” Mr. Rosenbloom stated that the prior tax amnesty for repatriated earnings didn’t “serve the nation well.” He went on to say that “the liquidity of multinationals is not the big problem in the United States, that’s not what is keeping us from increasing jobs, so it is unclear why we should go to an amnesty except as part of a broad reform movement.” For the complete interview, please visit Bloomberg’s website.”
@bubblebustin
Here is the reality that progressives have to face up to, in spite of a personal distaste for some of Rand Paul’s positions, he has now been right on 3 issues… There is a natural coalition between Libertarians and Progressives here that you can not over look, especially in the area of Civil Liberties
1. Drone Strikes
2. Repeal of FATCA
3. This Apple Tax nonsense spurred on by Carl Levin, the hypocrite…
As for how this legal tax avoidance has come to happen, well, Planet Money has a very interesting story of the source of the Irish connection…
Why Apple (And Lots Of Other Companies) Wound Up In Ireland
http://www.npr.org/blogs/money/2013/05/22/185896057/why-apple-and-lots-of-other-companies-wound-up-in-ireland
I was actually grinning from ear to ear once I saw the video.
A 35% tax rate may as well be 100% if the money NEVER comes home. They would get far more tax revenue at 5% or even 10%, because there would be a lot more compliance with a reasonable tax rate.
And what the hell did Apple do other than be successful, and using legal loopholes that everyone else will use?
And yes, bizarre and Byzantine, indeed! It’s also no secret that the US tax code is by far the most complicated on the planet, and has been so since God knows how long.
Finally, damn right Congress should be on trial. How much effort has been wasted by these jerks with their show trials, and especially from their envy specialists and their drama queens? Carl Levin? Christ! Isn’t it time for that old fossil to retire? Clearly he’s going senile!
@mjh49783
You will be happy to hear the old fossil is retiring. He has done about as much damage as he can do… Of course he will re-incarnate as a Lobbyist…
http://www.huffingtonpost.com/2013/03/07/carl-levin-retiring_n_2832081.html
Here is what Forbes thinks of his bizzareness.
Senator Carl Levin’s Entirely Bizarre Thoughts On Apple’s Cash Taxes Paid
http://www.forbes.com/sites/timworstall/2013/05/22/senator-carl-levins-entirely-bizarre-thoughts-on-apples-cash-taxes-paid/
@St George
Thanks for your comment. This has been mentioned many times here and most have likely already signed. That list is what led me here!
I signed the Moveon.org Petition to repeal and would suggest other IBS members do so as well. They are now still 40 short from the 2000 needed.
Sorry to post this out of context, but please sign the petition to repeal FATCA:
http://petitions.moveon.org/sign/repeal-fatca
Or maybe create a separate thread mentioning the petition?
@Just Me
Yes. Very happy. ;^)
@garbo999, @Steve Klaus, @StGeorge,
Thanks for highlighting the Move-On petition once again. Most of us have signed this petition early on. I signed it again yesterday (just in case). My name does not show up for yesterday, so it is good that there is a way that duplicates are discarded.
I’ve also signed the petition. I’m not sure it will do any good, but on the other hand, doing nothing never got anything done. ;^)
Another part I want to point out as amusing….
“It’s clear that Apple is acting according to and in compliance with the law. Yet, Carl has a problem with the fact that Apple is compliance with a tax code created by Congress in response to special interests. To put it another way there are two types of corporations that Carl has a problem with.
Type 1: The U.S. corporation that DOES NOT comply with U.S. tax laws.
Type 2: The U.S. corporation that DOES comply with U.S. tax laws.
The law be dammed! The test of good Americanness is now whether you do what Carl wants.”
If the hallmark of being a good American is doing what Carl Levin wants, which is to say, being batshit irrational on tax policy, and then admonishing those for doing nothing wrong at all, then isn’t today a good day to be an unrepentant turncoat? My God! The sheer arrogance! The entitlement mentality of the man!
I guess I can now smile a little, knowing that he’s just another asshole career politician at the end of his rope, after a long career of looking out for himself.
@mjh49783
Well said. Did you see the video where Carl tells Rand Paul that he’s free to apologize to the sub-committee? Rand Paul is visibly amused by Levin’s request (at about 1:10) but unfortunately after that, NBC’s camera only focuses on Levin’s pontifications, which are enough to make you gag with laughter or vomit.
http://video.msnbc.msn.com/nbc-news/51951286
@mjh49783, “…at the end of a rope” is precisely where I would like to see Levin. 🙂
@Just me,
You mention that:
“Here is the reality that progressives have to face up to, in spite of a personal distaste for some of Rand Paul’s positions, he has now been right on 3 issues… There is a natural coalition between Libertarians and Progressives here that you can not over look, especially in the area of Civil Liberties.”
Not to take away anything from your point (which I agree with), but I do think that there must be some on the more “conservative-libertarian” side who are also “progressive” in a good way (where are they hiding?).
I too feel that many of Rand Paul’s ideas (e.g., on health care) are just wrong–but with his positions on FATCA, drones etc. I am beginning to believe that my lost-cause write-in vote for his father (and by extension support for his son) in the last presidential election might have been reasonable.
@Watcher
LOL
Yup. A good sturdy rope, and a lovely shade tree. What other things does one need for a good old fashioned hanging party? Other than perhaps weenies, burgers, and beer?
@bubblebustin
If I was in Rand Paul’s shoes and that pompous ass told me that I was free to apologize, I would’ve said that he was free to get bent. But I don’t really need to be Rand Paul to say that. ;^)
Thanks, mjh. It adds one more toward the goal of 2,000 signatures. Every signature is important to getting this something done.