15% is still 15% compared to the 0% they pay on money funneled to tax havens.
A lower rate won't stop this; a closing of the loophole will.
A lower rate won't stop this; a closing of the loophole will.
Apple US buys iPods for $10 from China and sells in USA for $100. $90 profit, taxable, right? Wrong. Apple US licenses the Apple name from Apple Ireland for $89/iPod. Final tax sheet looks like:
Revenue: $100 cash from Apple store in San Francisco Expenses: $10 Apple China, $89 Apple Ireland
Taxable profit in USA: $1 (minus labor and such, of course)
Taxes paid to US government: minimal.
The profits from firms that do lots of business in the USA are being paperwork-shifted outside the country to evade taxes.
This has been covered extensively in numerous in-depth articles about major corporations and their tax schemes.
This is how Apple ends up with 250 Billion (or whatever it is now) overseas that it doesn't want to Repatriate and pay US taxes on. That money wasn't earned by selling iPods in the US, it was earned by selling iPods everywhere else.
The first is the US government not doing enough to prevent shell IP licensing from being used to eliminate US profits (while the companies are benefiting from US stability and legal protections).
The second is the issue with US companies repatriating (or not) profits earned in foreign subsidiaries.