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Comment by thisisweirdok | Hacker News Reader

As far as companies go, Apple has enough money to basically be a deity. I think more of it should be in the hands of their employees and the American taxpayer.

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It's true, their cash on hand tops the GDP of many countries.

They also pay more in taxes than the GDP of many countries.

Do they? I thought they were notorious for not paying taxes?

Like most rational actors, they try to minimize the tax they pay. However, even a little tax on a trillion-dollar company adds up to a lot. They still pay quite a bit.

Despite the rampant reporting by the media about US companies not paying their "fair share" of taxes, as of 2017:

"The biggest taxpayer was the most profitable: Apple, which reserved $15.8 billion for income taxes on $59 billion in operating income. Apple reports its effective tax rate as 25.8%"

I think it's time to end this falsehood about Apple as I constantly see it posted on HN.

Do you have a source on that? The wording on that is odd, which makes me want to look into it. It may be my mistake, but I don't recall corporate taxes often called "income taxes" and it's odd how its referred to as they "reserved" it, instead of quote what was paid.

It almost sounds like they are referring to taxes withheld from paychecks for employees, which is definitely not the same as what a company pays in corporate taxes in its profit.

If your source is this Forbes article [1], it's referring to Apple's domestic tax rate (this is clear because they compare it to the 35% nominal domestic rate). Their worldwide tax rate is lower. Apple is projecting that its worldwide tax rate will drop to 15% now that the new US tax law has taken effect. [2]

1: https://www.forbes.com/sites/christopherhelman/2017/04/18/wh...

2: https://www.fool.com/investing/2018/02/05/heres-how-much-app...

What bothers me there is, according to my understanding, that taxation laws were changed in the last cuts so that foreign subsidiaries of corporations basically owe no US income tax on their profits (maybe ok, not sure there), but left alone the case if a US citizen relocates elsewhere and makes an income, only the first $xx,000 dollars are not taxed by the US.

Another inequity: corporations can deduct their SALT, but individuals can only deduct $10k of SALT. So many people derided Citizens United (corporate campaign contributions case) as granting personhood to corporations. But the new tax law actually grants more rights to corporations than to people!

Of course, I understand that corporations have always been able to do lots of things that people couldn't do, such as enjoy limited liability. But these are very close analogs, and there aren't any compelling policy reasons as to why corporations should get unlimited SALT deductions if people aren't given this privilege.

It's not a falsehood. I pay a higher tax rate on some of my income than Apple pays on average.

While I suspect we are going to have different viewpoints, do you employee hundres of thousands of people, contribute massively to the world economy, and innovate like Apple? Just a point, that while their effective percentage may be lower, they have massive impact, and a $59 billion tax payment.

As a public company that money will go to shareholders through stock buybacks over time. But a lot of americans do own AAPL through their retirement plans so maybe that counts for something.

I think your money should be in my account ! Well we can fantasize about other people's money.

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