BREAKING: Groups ACCE, Jobs with Justice, and Americans for Tax Fairness project #taxdodger and #badapple onto Apple logo during WWDC party on Thursday night:
This week, notorious tax dodger Apple is putting on it’s Worldwide Developer’s Conference. While Apple presents its new technologies, our roads and bridges will continue to crumble without the funds to repair them. Without the $10 billion in taxes that Apple dodged this year, we can’t afford programs that our communities need, like Head Start, Meals on Wheels and public works projects that create jobs.
Here’s some highlights of Apple’s tax dodging (And check out our full fact sheet on Apple’s tax-dodging here):
- Apple made profits of $74 billion from 2009-2012 on worldwide sales (excluding the Americas) and paid virtually nothing in taxes to any country. The sales were attributed to Irish subsidiaries, where the companies paid a tax rate of less than 1%.
- Apple’s effective U.S. federal income tax rate was just 7.3% in 2011. Apple claimed its tax rate in 2011 was 24.2%, one-third less than the official tax rate of 35%. But the Senate subcommittee found its rate was no more than 20.1%, allowing Apple to claim credit for $3 billion of deferred taxes on overseas income that are not owed until the profits are brought back to the United States. Since Apple has said that is not likely to happen, its effective tax rate in 2011 was just 7.3% – $2.5 billion in taxes actually paid against $34.2 billion of income before taxes.
- Apple supports a temporary tax amnesty – a “repatriation” tax holiday. In 2011, Apple founded the WIN America Campaign, which promoted a tax holiday that would allow U.S. corporations to bring back (“repatriate”) offshore profits to America at a fraction of the corporate income tax rate. A similar tax holiday in 2004 reduced the corporate income tax rate to just 5.25% and 92% of the repatriated profits were used to pay for dividends, share buybacks or executive bonuses, not to make new investments or to create jobs.
- Apple supports permanent tax amnesty – a territorial tax system. Apple CEO Tim Cook recently testified to the U.S. Senate subcommittee in favor of a territorial tax system, which would change the way U.S. corporations are taxed so that they will be taxed solely at the tax rate that exists in the country where the profit is derived. This will provide a magnet for Apple and other companies to shift even more profits, production and jobs to tax havens.