Originally posted May 31, 2013.
A dose of reality on taxation from Pat Buchanan.
Sen. Carl Levin was aghast.
Before his committee sat, unapologetic and uncontrite, Apple CEO Tim Cook, whose company had paid no U.S. corporate income taxes on the $74 billion it had earned abroad in recent years.
“Apple has sought the Holy Grail of tax avoidance,” said Levin. “Apple has exploited an absurdity.”
Actually, Apple had done nothing wrong, except hire some crack accountants who chose Ireland’s County Cork as the headquarters of their international division. Thus Apple paid on profits earned outside the U.S.A. nothing but a 2 percent tax imposed by the Irish government.
Far from being condemned, Apple’s CPAs ought to be inducted into the Accountants Hall of Fame.
It is no more immoral for Apple to move its headquarters for foreign sales to Ireland than for Big Apple residents to move to Florida to escape the 12 percent combined state and city income tax.
Among the reasons the Sun Belt is booming at the expense of the Rust Belt is not just the weather. Southern states strive to keep income and estate taxes low or nonexistent. They want companies and families to relocate and live there, and to spend their money there.