Audio Clips

21 May 2013

Apple Grilled for Paying Less in Taxes Than McCain Thinks They Should

Today Apple CEO Tim Cook and other Apple executives were dragged in front of a Senate committee to answer for not paying as much in taxes and Senators Carl Levin and John McCain think it should.  Just as a quick reminder, corporations don't pay taxes.  Now Mr. Levin and Mr. McCain may be forgiven for not knowing this because they are, you know, senators.  We as taxpayers, however, need to know the truth.  That is, corporations don't pay taxes, people do.

Corporations are a structure for the purpose of running a business. Corporations are owned by the shareholders and sell goods or services to their customers. When a corporation "pays taxes" it is either excess money that they have collected from their customers or part of the profit margin that would go to the shareholders. In other words, the taxes that are paid by corporations are really paid by the shareholders of that corporation or the customers. Corporations don't pay taxes. People pay taxes.  Whatever percentage of the total U.S. tax burden was paid by corporations was actually paid by you instead. You paid for it in the price of the goods and services you bought or you paid for it in lower earnings from the stocks that you own.

For a couple of great videos on this from Walter Williams and Milton Friedman just look below.

No comments: