Apple executives are being grilled by the Senate today over their policies to minimize their U.S. corporate income tax expenditures by keeping a mountain of cash offshore.
Tons of companies do this. Everyone from Google to Coca Cola keeps billions offshore in tax havens to minimize their liability.
However, Apple happens to be the company that keeps the most cash offshore, and offshoring has become a major problem.
Here’s the issue.
Since 1950, corporate profits have exploded in the United States:
However, corporate taxes as a percentage of government receipts are at an all-time low:
That’s a startling divergence.
The Senate thinks that offshoring of corporate cash as a way to avoid corporate income tax is what’s wrong.
Since Apple is one of the most notorious offshorers in the world, they’re going to try to crucify them.
Since the government is perpetually in a state of perceived fiscal crisis, it would be ideal to raise revenues from companies that are percieved as “tax dodgers” rather that turn the screws on actual people who can legally vote.
That’s why the Senate is trying to screw with one of America’s best companies.
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