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Apple Uses Legal Accounting Rules to Avoid Taxes

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  • Description

    FBN's Liz MacDonald weighs in on Apple's tax strategy.

  • Duration 2:15
  • Date

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This transcript is automatically generated

That right.

Are more numbers came -- our op or not should apple be paying more than the five billion with a B they are already paying in taxes now is the mcdonalds here.

-- -- tax strategy first of all let's explain to people why this is even in the news is not like he went on as -- and read about out -- not a member of the New York Times and a big blow that story saying apple should be paying 2.4 billion dollars more in taxes it's making it very tax moves.

The question though is it -- who would be paying those taxes.

The customers the employees to shareholders because companies really don't pay taxes they pass those taxes along.

But the other issue too is the New York Times likely got the effective tax rate that they calculated for apple wrongly calculated nine point 8% very low effective tax rate for apple at -- on SEC filings show that they effective radius.

24%.

Globally probably 20% for the US federal tax rates knows if it's a huge difference it's more than doubled -- what the New York Times reported.

Basically they were saying reckon -- -- based in that northern Silicon Valley but they set up this office in Reno Nevada which state has no state income tax.

And it's a very obvious way to get around paying those those state income taxes yet but that's legal and that's the way the system is set up.

-- issue is is a stable tax and regulatory policy and DC that'll attract the 700 billion parked overseas.

Back into the US that's cheaper stimulus -- right -- the president's 750 billion or so stimulus plan to get that cash in the door here in the united -- finish I think York times story if it didn't note that the US treasury.

Gave tax breaks to AIG Citigroup and Bank -- -- -- to bail them out so they got tax breaks.

As well those bill that companies should they should -- -- -- issue attraction.

Well you -- wonder the public editor could possibly take it -- because really the effective tax rate.

The weighted to the -- -- with so egregiously wrong they lose.

Apple's corporate profits not -- financial -- two was as always higher than the taxable income any company reports.

To the IRS so and then they did they -- -- -- is these divisions and it was just wrong mean even apple and it's an SEC filings for gas and irrespective -- -- is that there -- -- in the Green when you do your 1040 it's like being taxing adjusted gross income not your taxable it's a big.

Different is that -- -- dozen McDonald's you're awesome girl.

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