This post is from the RenouceUScitizenship blog.
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?