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$76 BILLION in cash. Still no dividend?


studiomprd

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" "Apple, like many other multinationals, is using perfectly legal methods to keep a significant portion of their profits out of the hands of the I.R.S. And when America's most profitable companies pay less, the general public has to pay more." "

http://www.nytimes.com/2012/04/29/business/apples-tax-strategy-aims-at-low-tax-states-and-nations.html?_r=1&nl=todaysheadlines&emc=edit_th_20120429

" Apple serves as a window on how technology giants have taken advantage of tax codes written for an industrial age and ill suited to today's digital economy. "

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  • 3 months later...

and now this news:

" Apple's rising stock propelled the company's value to $624 billion, "the world's highest ever. It beat the record market capitalization set by Microsoft Corp. in the heady days of the Internet boom." ... Apple was already the world's most valuable company -- and has been since passing Exxon Mobil nearly a year ago. "

http://www.hollywood...-billion-364125

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and now this news: "Apple's rising stock propelled the company's value to $624 billion, "the world's highest ever. It beat the record market capitalization set by Microsoft Corp. in the heady days of the Internet boom." ... Apple was already the world's most valuable company -- and has been since passing Exxon Mobil nearly a year ago. "

A buddy of mine bought Apple stock for $9 about 13 years ago, and kicks himself every day for selling when the stock hit $150! He thought he'd made a killing. Who knew it would go up to $660 as of today...

aapl_660.jpg

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And don't forget the split a couple of years ago, in two. So basically that 9 dollar stock of your friend is worth 2x660=1320 right now... Now what if he invested about a grand in it... :) anyways, I did the same, bought for I think 18 dollars, sold for about 200. After the split. Made a good deal, I thought back then. I kept one stock from that batch, for fun.

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  • 8 months later...

From the New York Times:

Even as Apple became the nation’s most profitable technology company, it avoided billions in taxes in the United States and around the world through a web of subsidiaries so complex it spanned continents and surprised experts, a Congressional investigation has found. Some of these subsidiaries had no employees and were largely run by top officials from the company’s headquarters in Cupertino, Calif., according to Congressional investigators. But by officially locating them in places like Ireland, Apple was able to, in effect, make them stateless – exempt from taxes, record-keeping laws and the need for the subsidiaries to even file tax returns anywhere in the world. In 2011, for example, one subsidiary paid Ireland just one-twentieth of 1 percent in taxes on $22 billion on pretax earnings from various operations; another did not file a corporate tax return anywhere and has paid almost nothing on $30 billion in profits since 2009.

READ MORE » http://www.nytimes.com/2013/05/21/business/apple-avoided-billions-in-taxes-congressional-panel-says.html?emc=na

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Apple is being particularly evil with their latest bond sale. Instead of repatriating some of their overseas profits, and paying US taxes on same, to distribute said profits to its shareholders, Apple is selling bonds to gather the money to distribute and deducting the interest paid on the bonds.

Pretty disgusting really.

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One of the Mac forums has a chart that says, "if you had bought Apple stock instead of a $5000 laptop in 1999, you'd have over $500K today..."

 

A couple of years ago I came across the receipt for my first Mac Laptop - a PowerBook 540.

$3800 !!  

 

MF

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Next Mac will be made in Texas, Tim Cook says
Published May 21, 2013
 
WASHINGTON –  Apple Inc. is as American as apple pie.
 
Before a congressional committee probing tax loopholes that let his company avoid paying taxes almost entirely on tens of billions in revenues, Apple CEO Tim Cook stood strong, stressing one fact above all: This company was made in the U.S.A.
 
“We are proud to be an American company, and equally proud of our contributions to the U.S. economy,” Cook told the Senate Permanent Subcommittee on Investigations, which released a detailed report Monday on the company's practices. Apple is holding overseas some $102 billion of its $145 billion in cash, according to the subcommittee's report -- an action that's perfectly legal, through quirks in the tax law the panel sought to address.
 
Yet Apple pays billions in taxes already, Cook said.
 
“To the best of our knowledge, Apple has become the largest corporate income tax payer in America,” Cook told the panel. And that's going to increase, as the company joins the ranks of companies that are once again building computers on U.S. soil.
 
“We are investing 100 million for new Macs that will be built in Texas, with components made in Illinois,” Cook said. Parts for that computer will come from various facilities across the country, including Texas, Mississippi, Kentucky and more.
 
This distribution mimics the nationwide sourcing for the company’s other products.
“Components for iPhone and iPad are made in Texas, and iPhone glass comes from Kentucky,” Cook said. “In total, Apple is responsible for creating or supporting 600,000 new jobs,” he pointed out, noting that the company has created “hundreds of thousands of jobs” in the U.S.
The Senate panel sought to examine not Apple’s job making strategy but its methodology of dealing with foreign income, which is shunted through an Irish company. Irish law lets a company conduct business in the country without paying taxes there.
 
And that sure sounds like a loophole, stressed Senator John McCain.
“Apple is one of the great tax avoiders in U.S. history,” McCain said. “Apple has given new meaning to the company’s old slogan, ‘Think Different,’” McCain said.
J. Richard Harvey of Villanova University School of Law, who testified before Cook, agreed.
“[My children] might characterize it as ‘making things go poof,’” Harvey said. But Senator Rand Paul, also on the panel, disagreed with that characterization.
“I’m offended by the tenor of this meeting,” Paul said. “Tell me a chief financial officer you would hire if he didn’t try to minimize his taxes legally.”
 
But Apple's strategies are legal, and many other multinational corporations use similar tax techniques to avoid paying U.S. taxes on profits they reap overseas. Yet Apple uses a unique twist, the report found. The company's tactics raise questions about loopholes in the U.S. tax code, lawmakers say.
 
Apple refuted the subcommittee's assertions in testimony prepared for the hearing. Apple said it employs tens of thousands of Americans and pays "an extraordinary amount" in U.S. taxes, citing the roughly $6 billion it paid in fiscal 2012.
 
Apple "complies fully with both the laws and the spirit of the laws," the testimony says. "And Apple pays all its required taxes, both in this country and abroad."
"Apple does not use tax gimmicks," the statement says.
 
The Associated Press contrubited to this report.
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Well, here I find myself agreeing with some statements from Rand Paul. Congress focusing on Apple is a really cheap shot and serves to hide from public scrutiny the historical legacy of major corporations that continue even today to shelter their wealth, avoid paying taxes, employing as few Americans as possible, etc., etc. Don't get me started on a rant about a company like BP that can essentially destroy a major part of our country, forever, and walk away with record profits and a fine that equals their last quarter's profits.

 

(and sorry, it seems like I may be posting in the wrong place, not following my own imposed guidelines for political posts)

 

From Rand Paul:

 

 

Excerpts from Sen. Paul's comments a few minutes ago, in which Apple executives were summoned before a Senate subcommittee:
 
"I am offended by a government that uses the IRS to bully groups such as the Tea Party but I am also offended by a government that convenes a hearing to bully an American business."
 
"I am offended by the spectacle of dragging before the Senate, executives from Apple using the brute force of government to bully one of America's great success stories."
 
"I frankly think the Committee should apologize to Apple. I frankly think Congress should be on trial here for creating a bazaar and byzantine Tax Code that runs into the tens of thousands of pages, for creating a Tax Code that simply doesn't compete with the rest of the world."
 
"I say, instead of Apple executives, you should have brought in a giant mirror if you want to see who is responsible."
 
To the Apple executives here, I apologize for this theater of the absurd. I will do everything in my power to make our tax code simpler and more competitive." 
 
"If there is anyone to blame here, it is Congress and the tax code it created."
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