Apple is Still Rotten to the Core

Apple's CEO Tim Cook testified yesterday before a U.S. Senate panel probing corporate tax avoidance. Apple is now parking $102.3 billion in cash overseas, deftly using tax havens to sidestep billions in state and federal corporate taxes.

Last week, in advance of his Senate appearance, Cook made the media rounds for a pre-emptive strike against his accusers, saying “Apple has a very strong moral compass.” In fact, the unapologetic CEO added, “Apple is paying approximately $1 million an hour in just domestic income taxes.” That sounds fairly impressive — until you realize that Tim Cook alone, in his first year as Apple’s CEO, grabbed a personal pay package worth $378 million, more than $1 million per day. 

Mr. Cook appeared before the same Senate Permanent Subcommittee on Investigations which had taken Hewlett-Packard and Microsoft to task over their tax policies at earlier hearings. 

From the Wall Street Journal: Senator Carl Levin (D., Mich), who chaired the committee, has taken issue with the tax loopholes that he asserts allow companies to "avoid paying taxes they rightfully owe." Apple has urged Congress to lower corporate-tax rates, reduce the tax on bringing back cash earned overseas, and expand H-1B visas.

Outsourcing jobs, low wages, unsafe working conditions, child labor, worker's suicides, H-1B visas and labor camps weren't mentioned by the Wall Street Journal.

The New York Times recently reported that Apple Inc avoided billions in taxes in the United States and around the world through a web of subsidiaries so complex it spanned continents and went beyond anything most experts had ever seen.

Some of Apple’s subsidiary companies had no employees, and were run by top executives from Apple's headquarters in California; but by "officially" locating them in places like Ireland, Apple was able to make these shell companies stateless — exempt from all taxes, record-keeping laws and the need for the subsidiaries to even file tax returns anywhere in the world.

Apple was able to largely sidestep taxes on tens of billions of dollars it earned outside the United States in recent years. Last year, international operations accounted for 61 percent of Apple’s total revenue. Apple’s tax avoidance efforts shifted at least $74 billion from the reach of the Internal Revenue Service between 2009 and 2012.

• A law professor at UCLA: “There is a technical term economists like to use for behavior like this, 'Unbelievable chutzpah.'"
• Senator Carl Levin: “Apple successfully sought the holy grail of tax avoidance.”
• Senator John McCain: “Apple claims to be the largest U.S. corporate taxpayer, it is also among America’s largest tax avoiders.”

Because of these tax strategies, Washington is forced to rely more heavily on payroll taxes and individual income taxes to finance the government’s operations. In 2011, individual income taxes contributed $1.1 trillion to federal coffers, while corporate taxes only added up to $181 billion.

And Apple wants lower tax rates for repatriated foreign income, but a study by the National Bureau of Economic Research found that 92 percent of the repatriated cash is used to pay for dividends, share buybacks or executive bonuses.) 

In another New York Times article: Edward D. Kleinbard, the former chief of staff at the Congressional Joint Committee on Taxation, and now a law professor at the University of Southern California, says Apple's CEO Tim Cook is "asking for is a reward for having gamed the system". Last year, the 71 technology companies in the Standard & Poor’s 500-stock index — including Apple, Google, Yahoo and Dell — reported paying worldwide cash taxes at a rate that, on average, was a third less than other S& P companies.

The Wall Street Journal: Senator Carl Levin accused Apple of employing "alchemy" and "ghost companies" to escape tax collectors in the U.S. and Ireland. Aides to his subcommittee have said they have never seen a company use a subsidiary that didn't owe corporate income taxes to any country.

• Apple Operations International hasn't filed a corporate tax return anywhere in the past five years, the Senate panel found. The unit is the main holding company for Apple's business outside of the Americas.
• Another Ireland-based Apple unit, Apple Sales International, recorded $22 billion in pretax earnings but paid just $10 million in taxes --- a rate of about .05%.
• A third Apple subsidiary, Apple Operations Europe, also maintains its corporate profits aren't taxable by any country, according to the investigation.

Some senators on the Senate investigative panel went out of their way to note how much they enjoy using Apple's products. When Apple's CEO introduced himself to Senator Kelly Ayotte (R-N.H.), the one who voted against gun background checks, she kissed his ass and responded, "Nice to meet you. I have an iPad!"

My related Apple posts:

How Apple Screwed the U.S. Middle-Class

iLove Apple but iHate Tax Cheats

Apple Inc. is Rotten to the Core

Steve Jobs, the 'Boss', and the Wrecking Ball

Never Take Away Someone's Hope (Social Security Disability)

Since being laid off in 2008, for the first 2 years while looking work, I've gone through an escalated bout of depression and anxiety. After exhausting all my unemployment benefits and my life's savings, and after receiving a 5-day notice to vacate my apartment, and after losing my half-paid-off car --- my depression and anxiety has only become worse.

Little by little, my previous co-workers and friends eventually drifted away, and emails began going unanswered. I no longer had anything in common with those people, and I can no longer join them in previous activities because I no longer had an income. I began to think that "unemployment" was like a contagious disease, and that people were avoiding me for fear of catching my awful bad luck. When I would cross paths with someone from my past, I saw pity in their eyes and felt ashamed. My previous life and I had drifted into oblivion, like an unknown stranger.

During this whole time my physical health had also deteriorated --- a pre-existing condition of arthritis in my neck and back became much worse --- while I was also experiencing severe atrophy after being on my feet 8 hours a day and working laborious jobs for the previous 35 years, but then, suddenly, being totally idle. Now after being unemployed for almost 5 years, a short walk tires me out, as does sitting upright for long durations of time. So I now spend most of my time just lying in bed these days, wasting away.

As of early 2011, if it were not for someone who took me in to pursue a Social Security disability claim while applying for food stamps, I would not be here today. Since then, my bout of depression and anxiety has become worse; not just because of the isolation, but because of dealing with my SSDI claim while waiting for answers between numerous appeals after already having been denied three times on my Social Security disability claim --- two written appeals and one hearing before a judge. It's always the constant waiting and not knowing that continues to wear me down.

My quality of life is near rock bottom. For the most part, for almost 5 years, I've been both physically and mentally confined for a lack of an income, and especially since losing my car. For the past 3 years I've spent almost 24 hours a day in a bedroom watching TV, reading and surfing the internet, blogging, creating videos, publishing a book, and designing websites --- trying everything I can to keep my mind occupied --- and to keep from going totally bat-crazy from cabin fever. An occasional trip to the doctor's office every 3 months is like a high school field trip for me. (Lately I've been running out of ideas for things to do, and losing my desire to do anything at all.)

Every day I see the Binder & Binder commercials on TV, a daily reminder of my current predicament. I can't escape the daily worry of where (or how) my life might end up if my last appeal with the Social Security Administration is ruled unfavorably against me. At this stage in my life, it would be one of the most devastating things that's ever happened to me.

Sometimes, while laying in bed (which is most of the time, with no car to go anywhere and no money to do anything), I find myself quietly sobbing like a scared little boy, terrified of what awaits me in the future.

I realize that many others (both here in America and elsewhere in the world) have much more difficult lives than I do, but it's only my life that most concerns me these days. I look for relief anyway I can, which is usually when I sleep; but even then, I'm constantly haunted with nightmares that I can never remember after waking up.

All too often I dwell on my past, of better memories; but then I become even more depressed, missing the days when I once had happiness and joy in my life. I can't remember the last time I laughed out loud. Then I sob again. I can't help but feel sorry for myself, and when I do, then I also feel ashamed for feeling sad. It's a vicious cycle.

Through the county's social services office, I had obtained a medical card for my general doctor, so I also visited a mental health clinic for my depression and anxiety. I went for over year, getting two prescriptions, but they didn't help me at all --- even after I told the doctor so, and after he doubled my dose to the maximum; but that never helped me either, so I just stopped going altogether. Besides, getting my benefactor to drive me to these extra visits and picking up the prescriptions only became an additional burden for them as they usually work 7 days a week (and I always try not to impose anymore than I absolutely need to.)

All throughout my life I've worked very hard and tried to do everything I could to avoid being fired or laid off from jobs, as I have always feared being homeless. I once chose suicide over homelessness before, until at the last minute, a stranger took me in to pursue a disability claim. If I lose my final SSDI appeal, I will not have only failed to save my own life, but failed in my promise to my benefactor to pay back rent, if (or when) I was ever to be approved on my SSDI claim.

For years I've been living on pins and needles, living with the constant worry that's so deep, that sometimes I become totally immobilized. Yes, I'm that afraid. Simple tasks like phoning to renew a medication or to make a doctor's appointment sometimes seems so daunting, that I often procrastinate until the last possible minute to avoid going through an automated phone menu, just to be put on hold. I can't explain these feelings of terror, or why I feel so beaten down --- or why I've grown so hopeless.

Just 6 years ago I was financially independent. I was lucky in that I worked at a job that I enjoyed with people that I liked. I drove a nice car and had money in the bank. I felt confident and strong; and I was hopeful for my future. Today, it's the exact opposite for me. Since 2007 I've lost my father, my job, my home, my car, my health, my self-esteem and my hope for a future.

For over the past two and a half years as I've blogged, I've realized that I've been barking at the moon like a mad man, knowing full well that very little of what I write will ever make a difference to me or to the world. More than anything else, I do it as therapy for myself, and to help occupy all my worrisome and idle time.

I've exhausted any and all possibilities for my survival, and my SSDI claim just happens to be my very last chance. I'm 57 years old now, but I can't live like this much longer --- and not until I'm 62 years old, when I can eventually apply for a reduced Social Security retirement. Not just because of my own mental demise, but because of the burden it would impose on my benefactor (whether they allowed me to stay or not).

I miss the simple things in life, like getting in my car and driving to 7-11 to buy fresh donuts in the morning; or going to a local tavern on a Sunday afternoon to enjoy a burger and cold beer while watching a football game with friends. Or having the means and transportation to go to the store to buy socks whenever I need them. Or being able to afford to go out to a restaurant for a good steak dinner. I miss not having, or being able, to go to a job that I once enjoyed.

Now I feel (once again) like I'm nearing another fork in the road of my life, and that soon, events that are out of my control (like when I was laid off in 2008) will put me down another unknown path. I have no way of knowing where that path might lead me. One path would be an approval of my SSDI claim, which would allow me some new found hope, and a possible future for what remains of my life. The other path would be unspeakable.

Someone once said, "Never take away someone's hope, because hope might be all they have." I know from personal experience, that this is very true. I pray that I might soon be able exit my self-pity party, otherwise, I can not go on much longer without any hope at all.

Since being laid off in 2008, for the first 2 years while looking work, I've gone through an escalated bout of depression and anxiety. After exhausting all my unemployment benefits and my life's savings, and after receiving a 5-day notice to vacate my apartment, and after losing my half-paid-off car --- my depression and anxiety has only become worse.

Little by little, my previous co-workers and friends eventually drifted away, and emails began going unanswered. I no longer had anything in common with those people, and I can no longer join them in previous activities because I no longer had an income. I began to think that "unemployment" was like a contagious disease, and that people were avoiding me for fear of catching my awful bad luck. When I would cross paths with someone from my past, I saw pity in their eyes and felt ashamed. My previous life and I had drifted into oblivion, like an unknown stranger.

During this whole time my physical health had also deteriorated --- a pre-existing condition of arthritis in my neck and back became much worse --- while I was also experiencing severe atrophy after being on my feet 8 hours a day and working laborious jobs for the previous 35 years, but then, suddenly, being totally idle. Now after being unemployed for almost 5 years, a short walk tires me out, as does sitting upright for long durations of time. So I now spend most of my time just lying in bed these days, wasting away.

As of early 2011, if it were not for someone who took me in to pursue a Social Security disability claim while applying for food stamps, I would not be here today. Since then, my bout of depression and anxiety has become worse; not just because of the isolation, but because of dealing with my SSDI claim while waiting for answers between numerous appeals after already having been denied three times on my Social Security disability claim --- two written appeals and one hearing before a judge. It's always the constant waiting and not knowing that continues to wear me down.

My quality of life is near rock bottom. For the most part, for almost 5 years, I've been both physically and mentally confined for a lack of an income, and especially since losing my car. For the past 3 years I've spent almost 24 hours a day in a bedroom watching TV, reading and surfing the internet, blogging, creating videos, publishing a book, and designing websites --- trying everything I can to keep my mind occupied --- and to keep from going totally bat-crazy from cabin fever. An occasional trip to the doctor's office every 3 months is like a high school field trip for me. (Lately I've been running out of ideas for things to do, and losing my desire to do anything at all.)

Every day I see the Binder & Binder commercials on TV, a daily reminder of my current predicament. I can't escape the daily worry of where (or how) my life might end up if my last appeal with the Social Security Administration is ruled unfavorably against me. At this stage in my life, it would be one of the most devastating things that's ever happened to me.

Sometimes, while laying in bed (which is most of the time, with no car to go anywhere and no money to do anything), I find myself quietly sobbing like a scared little boy, terrified of what awaits me in the future.

I realize that many others (both here in America and elsewhere in the world) have much more difficult lives than I do, but it's only my life that most concerns me these days. I look for relief anyway I can, which is usually when I sleep; but even then, I'm constantly haunted with nightmares that I can never remember after waking up.

All too often I dwell on my past, of better memories; but then I become even more depressed, missing the days when I once had happiness and joy in my life. I can't remember the last time I laughed out loud. Then I sob again. I can't help but feel sorry for myself, and when I do, then I also feel ashamed for feeling sad. It's a vicious cycle.

Through the county's social services office, I had obtained a medical card for my general doctor, so I also visited a mental health clinic for my depression and anxiety. I went for over year, getting two prescriptions, but they didn't help me at all --- even after I told the doctor so, and after he doubled my dose to the maximum; but that never helped me either, so I just stopped going altogether. Besides, getting my benefactor to drive me to these extra visits and picking up the prescriptions only became an additional burden for them as they usually work 7 days a week (and I always try not to impose anymore than I absolutely need to.)

All throughout my life I've worked very hard and tried to do everything I could to avoid being fired or laid off from jobs, as I have always feared being homeless. I once chose suicide over homelessness before, until at the last minute, a stranger took me in to pursue a disability claim. If I lose my final SSDI appeal, I will not have only failed to save my own life, but failed in my promise to my benefactor to pay back rent, if (or when) I was ever to be approved on my SSDI claim.

For years I've been living on pins and needles, living with the constant worry that's so deep, that sometimes I become totally immobilized. Yes, I'm that afraid. Simple tasks like phoning to renew a medication or to make a doctor's appointment sometimes seems so daunting, that I often procrastinate until the last possible minute to avoid going through an automated phone menu, just to be put on hold. I can't explain these feelings of terror, or why I feel so beaten down --- or why I've grown so hopeless.

Just 6 years ago I was financially independent. I was lucky in that I worked at a job that I enjoyed with people that I liked. I drove a nice car and had money in the bank. I felt confident and strong; and I was hopeful for my future. Today, it's the exact opposite for me. Since 2007 I've lost my father, my job, my home, my car, my health, my self-esteem and my hope for a future.

For over the past two and a half years as I've blogged, I've realized that I've been barking at the moon like a mad man, knowing full well that very little of what I write will ever make a difference to me or to the world. More than anything else, I do it as therapy for myself, and to help occupy all my worrisome and idle time.

I've exhausted any and all possibilities for my survival, and my SSDI claim just happens to be my very last chance. I'm 57 years old now, but I can't live like this much longer --- and not until I'm 62 years old, when I can eventually apply for a reduced Social Security retirement. Not just because of my own mental demise, but because of the burden it would impose on my benefactor (whether they allowed me to stay or not).

I miss the simple things in life, like getting in my car and driving to 7-11 to buy fresh donuts in the morning; or going to a local tavern on a Sunday afternoon to enjoy a burger and cold beer while watching a football game with friends. Or having the means and transportation to go to the store to buy socks whenever I need them. Or being able to afford to go out to a restaurant for a good steak dinner. I miss not having, or being able, to go to a job that I once enjoyed.

Now I feel (once again) like I'm nearing another fork in the road of my life, and that soon, events that are out of my control (like when I was laid off in 2008) will put me down another unknown path. I have no way of knowing where that path might lead me. One path would be an approval of my SSDI claim, which would allow me some new found hope, and a possible future for what remains of my life. The other path would be unspeakable.

Someone once said, "Never take away someone's hope, because hope might be all they have." I know from personal experience, that this is very true. I pray that I might soon be able exit my self-pity party, otherwise, I can not go on much longer without any hope at all.

Oklahoma's "Big Government" Critics Denies Disaster Relief?

Will Republican Senators Tom Coburn and James Inhofe (both of Oklahoma) want federal disaster relief for help in dealing with the horrendous devastation that a recent tornado has caused their great state?

When the Senate passed the long-delayed Hurricane Sandy relief package, 36 Republicans voted against the bill --- and 2 of those Republicans had been from the good state of Oklahoma. Both Tom Coburn and James Inhofe had previously supported emergency aid efforts following other disasters in their own states --- such as after severe storms and drought (Senator Inhofe had actually boasted.) But in the past, both have shaky records for disaster relief.

On April 29, 2009 Inhofe wrote on his website, "I believe the first 100 days of President Obama’s Administration will be remembered for the unprecedented level of new federal spending and the return of big government."

In another post he wrote of Speaker Nancy Pelosi as being gleeful and said, "The San Francisco liberal [was] running free on a spending bender." And Inhofe had also sacredly referred to the Heritage Foundation, who had said that, while under Obama, was the "largest peacetime debt buildup in history."

But over the last four years, under Obama, we've had the largest deficit reduction — and the fastest — since the demobilization after World War II.

James Inhofe has always advocated for more tax cuts, a freeze on discretionary spending and "entitlement reforms" (food stamps for the working poor, unemployment benefits for laid-off workers, Social Security benefits for disabled and retired workers, and Medicare for the elderly.)

He says the sequestration cuts were the fault of Obama, but he also says, "What America needs from Congress is to balance the federal budget. Senator Inhofe complained of "a trillion dollars in tax hikes and increased big-government spending" and says "we must put an end to this tax-and-spend mentality."

Senator James Inhofe had voted YES on a balanced-budget constitutional amendment (Mar 1997), YES on prioritizing national debt reduction (Apr 2000), YES on reduced overall federal spending (Dec 2005), YES on paying down the federal debt (Mar 2007), and he had also disapproved of increasing the debt limit (Jan 2012).

But Senator James Inhofe also voted NO on repealing tax subsidies for profitable corporations that outsource U.S. jobs (Mar 2005), NO on extending unemployment benefits from 39 weeks to 59 weeks (Nov 2008), and NO on restricting employer interference in union organizing. (Jun 2007).

Senator James Inhofe was rated 0% by the AFL-CIO, indicating an anti-union (anti-worker) voting record (Dec 2003) but was rated 100% by the US COC, indicating a pro-business voting record. (Dec 2003).

So in keeping with his steadfast ideological principles of helping big business, but not their employees; and cutting benefits for working Americans while cutting taxes for the rich; and reducing the federal debt at any cost to the poor; I will assume that this time Senator James Inhofe will vote NO on disaster relief for the good people of Oklahoma...

...because "big government" (lots of people) and spending (on those people) is "out of control", and no matter what harm may come (to those people) federal spending must be cut, just as in the aftermath of Hurricane Sandy. According to Inhofe (an maybe rightly so), the "earmark debate" was phony, so maybe he won't be requesting any.