Carl Levin Stories May 21, 2013

Senator Rand Paul apologizes to Apple, blames Congress for tax woes at Senate hearing

Before either Apple CEO Tim Cook or Apple CFO Peter Oppenheimer took the stand to testify on behalf of Apple to defend the company’s tax practices, Senator Rand Paul of Kentucky lashed out on Senator John McCain and Senator Carl Levin for the “spectacle of dragging in here executives from Apple using the brute force of government to bully a great success story.”

Senator Paul, a notable Tea Party leader and son of Representative Ron Paul, is often outspoken on issues of tax reform and made no effort to align for his Republican colleague Senator John McCain.

Chairman Levin didn’t hesitate to bring the narrative against Apple and its tax practices back to the center stage soon after Senator Paul’s comments.

Carl Levin Stories May 20, 2013

Apple CEO Tim Cook faces the US Senate, bipartisan senators plan to question Apple’s creativity in tax avoidance

Apple has already made its planned remarks before a Senate committee on Tax Reform known.

Here’s what the other side has to say via Michigan’s Carl Levin (Democrat) on the senator’s view of Apple’s tax avoidance strategy:

“Apple wasn’t satisfied with shifting its profits to a low-tax offshore tax haven. Apple sought the Holy Grail of tax avoidance. It has created offshore entities holding tens of billions of dollars, while claiming to be tax resident nowhere. We intend to highlight that gimmick and other Apple offshore tax avoidance tactics so that American working families who pay their share of taxes understand how offshore tax loopholes raise their tax burden, add to the federal deficit and ought to be closed.”

Republican Senator John McCain adds:

 “Apple claims to be the largest U.S. corporate taxpayer, but by sheer size and scale, it is also among America’s largest tax avoiders. A company that found remarkable success by harnessing American ingenuity and the opportunities afforded by the U.S. economy should not be shifting its profits overseas to avoid the payment of U.S. tax, purposefully depriving the American people of revenue. It is important to understand Apple’s byzantine tax structure so that we can effectively close the loopholes utilized by many U.S. multinational companies, particularly in this era of sequestration.I have long advocated for modernizing our broken and uncompetitive tax code, but that cannot and must not be an excuse for turning a blind eye to the highly questionable tax strategies that corporations like Apple use to avoid paying taxes in America. The proper place for the bulk of Apple’s creative energy ought to go into its innovative products and services, not in its tax department.”

Apple Chief Executive Officer Tim Cook, Chief Financial Officer Peter Oppenheimer, and Tax Operations Head Phillip Bullock will be on hand giving testimony.  Check back tomorrow for the blow by blow.

Carl Levin Stories May 1, 2012

Republican Senator Tom Coburn of Oklahoma appeared on “Morning Joe” earlier this morning to talk the debt crisis. During the interview, a question came up about a piece The New York Times ran this weekend that discussed Apple’s tactics of legally skirting billions in taxes each year by using tax havens like Nevada, Ireland, Luxembourg, and the Virgin Islands. Keep in mind: These practices are perfectly legal and other large companies are doing the same. However, when the Senator was asked about the topic, Coburn sternly replied that he’s “absolutely livid.”

As a solution to the issue, Coburn said that the nation needs to “reform the tax code,” which he said will lead to economic growth. The senator also said he has begun work with Michigan Senator Carl Levin to look into how Apple is doing this. The big thing it looks like the senator wants to do is bring the funds from these larger companies back into the United States to help put more money back into the economy—obviously through large taxes.

Apple currently has $74 billion of its money off-shores, and it is pushing, along with other companies, for a tax-holiday where it could bring its money back into the U.S at a cut tax rate. Apple responded to the NYT piece on Sunday:

expand full story

Powered by WordPress.com VIP