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Subcommittees accusations that the tech giant to set up offshore subsidiaries to avoid paying taxes take -- listen.
We pay all of the taxes we.
Every single dollar.
We not only comply with the laws but we comply with the spirit of the laws.
We don't depend on tax gimmicks.
We don't move intellectual property offshore and use it to sell our products back to the United States to avoid taxes.
Well the question is has not tax code failed to keep up with today's digital age joining us now governor John Engler president of the business roundtable our governor thank you for joining us.
Our -- pick up this point from what mr.
-- was saying I mean look they've done absolutely nothing wrong I don't think he misspoke today debate.
He did not he told it exactly the way it is he's doing what the law prevents he's doing what the law.
Requires him to do -- he is paying all of the taxes here the United States he's legally obligated to pay.
It's strange to me that the lawmakers would put him in the hot seat like this -- and you know apple already -- six billion in taxes.
And it certainly it's the law I -- soon that's wrong not what apple is doing to it.
Well I tried every one of the things that troubles me greatly is that our law.
Has resulted in some two trillion dollars of earnings made from sales in foreign nations and Edwards are replaced but the United States.
Being kept out of the United States because we have the highest corporate tax rate in the world.
And we are the only nation in the world of of size and significance economically that requires you.
To pay on a worldwide basis everybody else uses what's called -- territorial system much more at portable and we should reform the tax code hasn't been touched in a quarter century.
Before we -- have the Internet so let's get that fixed and these kinds of hearings will be unnecessary.
Do you think hearings like this.
John Bolton wolf pushed -- Effort forward or is it just -- -- for these lawmakers to get on television and beat up a corporation.
I think it's more that I do think that that.
The two that are quietly working very hard -- chairman Max Baucus chairman of the Senate Finance Committee chairman Dave Camp.
Chairman of the house Ways and Means Committee and they're very serious students of the tax code of the kinds of reforms that the nation needs.
And it's for the competitive as we -- economic growth and America the corporate tax code is a big part of that we ought to fix that.
So that it's helping not hurting.
You know -- all the meals so was I found in -- Senator John McCain of Arizona saying work.
He called it outrageous that that apple essentially what he was insinuating sets up the shell company an island.
To take advantage of the low corporate taxes but if you look at what apple has in place that I have 4000 employees I mean it's not a shell.
In any shape or fold.
Well again and nobody is saying and in fact if they're not safe because it is and so -- Apple's done nothing that's improper.
-- -- senators may wish that the laws are different in other nations.
I wish the laws are different in our nation and guess what the United States senate can't rewrite the Irish laws -- the -- -- laws.
But they can rewrite the US law.
That's true you know generally.
Apple -- avoided the hill like the play big.
For a variety of reasons but do you think is important today for apple to have its say and did Tim Cook do would you have done a good job.
Well look I don't think anybody wants to find themselves in front of a committee for really any purpose -- it has advocated for something it's -- a serve improve the jobs climate I'm not sure apple would think that today they were they were doing -- but I think -- CEO presented a spirited defense he explained clearly.
That Apple's been following the law good for -- -- And let's get the congress now focus on what needs to be done and that's a reform and outmoded.
Tax code it's desperately in need of modernization.
One can only hope thank you so much government -- -- of the business roundtable appreciate.
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