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Reason Magazine editor-in-chief Matt Welch on Apple paying a tax rate of under 10%, and why he approves of this.
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-- -- -- Now let's.
-- the New York Times apple has shifted 70% of its profits overseas.
Globally the company made thirty -- billion dollars profit last year.
And according to the times apple paid.
3.3 billion dollars in taxes worldwide last year that means the company's tax rate is just nine point 8%.
It all comes down to legal accounting tricks that move Apple's operations overseas moves the money around to look -- no tax countries.
Matt Welch is with three good reasons macro reason magazine he is that editor in chief in DC.
-- you're libertarian.
I take -- you approve of apple paying as low a tax rate as it possibly can.
I approve of everybody paying as low tax rate as they possibly can.
Within the law.
We have laws for reason and we follow -- and we pay our taxes accordingly you do it I do it.
Warren Buffett does of for crying out loud and apple does it too and now were registering shock that in a country which now I'm not mistaken has the largest our highest corporate tax rate.
In the world.
That companies are going to be looking for creative methods to try to pay to have a lower tax burden it is it's a ridiculous register -- -- you don't know enough policy I've -- on -- I'm not shocked I'm not so I think shocked -- surprised I'm not denigrating apple for doing this everything is perfectly legal they simply making as much money is that -- that's that's fine.
But I can -- that they gonna come under attack for paying a low tax rate and I could also say it stands in very sharp contrast to say the oil industry.
Which pays a much higher tax rate and he's beaten up by the president for doing that.
Well sure and if you think about it there's there's probably good reason that oil companies should pay a higher tax rate than a software company and if nothing else.
They're not you know belching out -- into the into the atmosphere in extracting things from the ground is any number of reasons why software should be treated.
Differently and you're right they are going to be coming under pressure because right now we've shifted and in the national kind of democratic conversation.
To just going after the mallet factors of great wealth whether they have -- -- it or not it is the -- -- well they are not paying there.
Fair share so that we can pay for.
What was an incredible state.
Government spending binge in California and in the rest of the country in the good times between 2000 and June 2007 when they jacked up spending by eighty.
Percent in real -- view as again you're libertarian.
You think there should be a single a simple flat rated tax -- all corporations within that mining companies or technology companies regardless of that you want a flat rate attacks or no tax at all on corporations.
It's certainly much lower much is -- right I won't tell you the exact number may be at zero -- you know maybe it's fifteen I'm not sure.
But what we do instead is we have thousands millions of pages almost a dismal points.
A making it helplessly complex you know within the story which actually does not come up with a a number of taxation -- apple pace they were speculating at the end of the day.
But they they don't -- expressed the same amount about outrage at apple trying to gain the system and right tax breaks and tax credits themselves that is that is much of the problem -- anything else is that the system encourages companies and in companies use their money to try to write special favors and tax credits for them that is much bigger problem in my point of view then it is the fact that people using legal methods to reduce that tax burden.
Very interesting.
Matt -- always a pleasure thanks for joining us again -- we'll see you soon thank as a it's nine -- in almost 9:50 eastern so let's check the price of gold sixteen and 5680.
That's exactly where we are and again that's who we've been for some -- now down 8 box this Monday morning.
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