Tuesday, August 30, 2016

Peeling the Apple with a dull knife

Apple set up an operation in Ireland.  Probably because Ireland's corporate tax is only 12%.  All of a sudden the EU, in Brussels, says that Apple ought to be paying $14 billion more in taxes.  Both Apple and Ireland are appealing.
   Couple of things I don't understand here.  I thought the internal affairs of EU countries. especially tax law, was under the control of those EU countries, not under the control of Brussels.  Nor did I think that Brussels has the authority to levy EU wide taxes.  If this is the case, how does the EU get to demand an extra $14 billion from an American company operating in Ireland? 
   Then there was a chucklehead sounding off on Fox News.  He said that Apple should never set up operations in Ireland, Apple should do all it's business back here in the USA, to avoid exporting American jobs.  Sorry there my chucklehead, Apple management is required by law to maximize Apple's earnings for its shareholders.  Anyone can see that doing business in Ireland with a 12% tax creates more earnings than dong business in the US with a 35% tax. Apple was doing its duty in maximizing its earnings.  Maybe the US should think about lowering its tax rate to keep business in the country. 

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