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Our top story tonight out.
Apple's CEO Tim Cook is heading to DC to testify before congress tomorrow is expected to face some tough questions.
And what apple has over a hundred billion dollars of foreign profits parked outside the US.
But cook -- argue that our current tax code forces companies to hold there.
There overseas profits offshore rather bring -- home but the US public slap at 35% tax on the money.
So lawmakers listen to what cook had the -- finally revamp our tax code to make it more business friendly.
Hear from more -- Karen foundation senior tax policy analyst Curtis do Beck and fox business's Liz MacDonald was -- look at the testimony what's it gonna say tomorrow.
I you know he's going to be really forceful it's unusually pointed language is gonna push back on his critics in the media that have said that the apple uses tax -- he's saying it does not use any tax gimmicks -- -- -- it havens.
He's gonna say that apple is one of the biggest if not the biggest corporate tax -- in the United States one dollar out of every forty collected.
By the United States comes from apple he's gonna -- cut the corporate tax rate simplify it we will pay.
Willingly more in corporate taxes if you do that he's saying also apple does support 600000.
Jobs and has helped create or support 600000 US jobs including -- 90000 -- the -- economy is also gonna say that pension funds.
Putt including public pension funds and Michigan Ohio and Kentucky rely heavily on apple shares -- Well yeah they've done very well -- not forget that card -- do you think this hearing.
Truly is aimed at great new ideas to reform the tax code and help companies bring cash home.
Or is the purpose of the hearing to beat up on apple for not paying more taxes.
It doesn't know latter but -- we don't know what time of the reason why apple and other companies have so much income -- -- -- It because of our antiquated out of date.
You corporate tax system we're -- not or only few countries in the world net tax our business and income they earn around the cut around the world the total worldwide tax system.
It in in -- group of organ but -- organized.
-- -- there's -- -- cooperation and development to group of the development countries around the world.
Only a few other other countries do that but they have much more race than we knew -- point comes that effectively taxes are -- on the income they earn around the world.
Yeah -- -- -- income abroad because we because we add that actually -- regular -- John Chambers CO Cisco told me that if you cut the 35% tax rate on overseas cashed -- only 5% as that Treasury Department tried an experiment no five.
He says you bring home instantly -- hundred billion dollars in private money be a whole new stem stimulus package -- about taxpayer dollar.
Yeah that's important I mean the government officials and politicians that say look government spending creates economic growth.
But they also -- ironically the last companies like apple for repatriating pockets of things like dividends -- to does create economic growth that's the point you're making.
A big corporate rate here in -- -- it is 35%.
Companies tend to -- -- let me just talk a little bit quickly.
With the US companies do get -- taxed twice sic attacks the first by the oversees government and then when the money is repatriated back here.
Severely tax the band and you're the only major economy to do that that's right it's true one of the few ended that he doubled wal -- -- GE's apples of the world go up against.
-- -- -- -- -- And China and Germany and Canada -- attacks that lower rates so when you have that high rate to Dennis.
And also invites a lot of monkey shines in Wheeling dealing.
And political pressure from companies.
To congress to write loopholes and tax favors into the -- -- it and then they get donations congress gets an -- race and that's a promise the -- For an artist I get the feeling that.
In Washington there's this assumption somehow that is unpatriotic.
For people to find ways to pay less legally on their taxes.
And that that's run things drivers don't think on this politically correct thing -- -- set.
I think that's that's important to point out that.
-- an artist unease comes under it be illegal they're avoiding taxes -- -- to keep your tax bill as low as possible and that's what they're doing.
And keep in mind that the income that end up staying offshore and some people say -- I really object that that classification of shifting.
But it's not implements -- here in the US I can't go down and Apple Store here in Washington -- -- iPad and have that and that an apple but it shift that it will brought.
Other income that they keep oversea overseas is -- -- -- from some idea as in the UK and France Germany yes -- Lizzy you know I think criticism that well we're gonna cut the tax -- on that -- we -- -- force them to to hire people with a it's terrible that they brought it home and 0506 and actually paid for dividends wait a minute this cash belongs to the shareholders of apple yeah -- -- right to use it to.
Eight and cashed it I think that's a -- this -- -- and that distortion of what companies face here in the United States when it comes with a high tax rate.
And essentially the gentleman is right I mean apple does keep it's money that money two thirds of its cash and cash equivalents -- -- receives.
Because 61% of its sales comes from overseas so they're growing their business overseas they're building -- in Europe and Asia and that money flows back into apple and -- back in to support the R&D that apple is saying it is keeping in California those are -- units so you know it's an important debate to have right now because apple we'll set the -- and will basically so the -- if -- watching and the reader that this is a lesson in what is going on with the US corporate tax rates.
OK but last question and Curtis will we see some breakthrough in policy here in the hearing tomorrow with Tim -- or this is going to be a great opportunity for.
Congressman to beat up on the guy for not paying higher taxes.
Well tomorrow is all about grandstanding but there is opportunity and moved to -- -- policy because.
Chairman of the ways and -- -- Dave Camp he is insists on pushing for a tax department he actually has a very comprehensive very detailed plan.
I'm not -- international -- form.
I'm -- Obama has said that he's open to corporate tax reform so we could see some movement in that specific area all right thanks very much guys -- being let us.
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