Because the US is not going “down a path that neglects its obligations”. In fact quite the opposite since it just got a massive tax revenue increase. So comparing it to a situation where the US decided to just stop levying tax doesn’t make sense.
Nah, they capitulated and accepted a far lower rate than they should have received otherwise if Apple (and companies like them) weren't permitted to play these shifty legal games.
If the U.S. gov was really looking out for its own interests and the interests of its citizens, it would have closed these loopholes years ago and told Apple to go pound sand going forward.
Pay your taxes or get slammed with massive fines and be barred from selling product in the U.S. until your tax bill is paid.
Not many markets can afford their products, see how they like it when the country whose resources and laws allowed them to become so successful becomes off limits to them.
I'm starting from a position that assumes the government is entitled to the prevailing tax rate that was law at the time the income was earned.
A tax rate that existed during a time when Apple became the world's most valuable company. It wasn't a colony with no representation suffering under a tyrannical monarchy that was leeching it like a parasite for the enrichment of an elite class. They ARE the elite class.
In fact the opposite is true. Apple benefited from all the services paid for by other tax payers (security and military, infrastructure, legal system, etc) and avoided paying their fair share using legal tricks and loopholes.
The result wasn't "fix the loopholes" it was "give the finger to the American people and government until we get someone elected that will change the rules in our favor"
I'm not saying government is the answer to all problems. Far from it. But there's no question Apple exists and is as successful as it is in large part due to the favorable environment America provides to business...and part of that environment exists due to things paid for with taxes. Never mind the ridiculous wealth inequality that is only continuing to grow in the U.S...this road leads to oligarchy.
Fact 1: reduced tax rate and revenue
Fact 2: permanent beneffit to corporations, in the form of tax reductions
Bet 1: the economy will grow
Bet 2: the proffits will trickle down
Bet 3: increase in economy will allow to fullfill obligations
If the bets do not materialize, nobody cares. That is, nobody except tax payers and recipients of federal promises.
Corporations and wealthy individuals will pocket proffits upfront. The rest are left praying for the bets to work out.
I am interested in seeing where this goes. if we do see wage growth from it, it provides evidence to a lot of questions about how the cost of healthcare was squeezing out our wages. if it doesnt, then a lot of complaints about corporations will have a lot more evidence.
putting all that aside, this news about apple bringing over the cash is a huge win for everyone. having that money sit and do nothing was pretty much bad for everyone.
Spoiler alert: It's a remake. Trickle-down doesn't work.
Investing significant money in businesses doesn't create more work. Increasing demand creates more work. How do you do that? You put more money into the hands of consumers, which is the opposite of what this bill did.
beyond that, I have seen me and many others see immediate returns. your position is already starting from a hole, but I am a wait and see kind of person.
I hope it works out, you should too, unless you are one of those people who just want to see the world burn types.
Are you in the bracket of a typical American taxpayer or the bracket of a typical HN-er?
> I am a wait and see kind of person.
We've been slashing taxes on corporations and the wealthy since the Reagan era under the trickle down philosophy, but we're still waiting for that money to actually trickle down: https://www.epi.org/productivity-pay-gap/
If 50 years isn't a long enough experiment for you, what is?
Ending the individual mandate will likely reduce the number of people buying insurance from ACA marketplaces, but that isn't going to dramatically change the price of other insurance (to the extent it has an impact, it will probably push insurance prices up...).
The tax cuts are, at present, going to largely be paid for by borrowing money.