Originally Posted by Villages Kahuna

Before I ask my question let me say that I am a big fan of Apple. I've used their computers almost from the time they started selling them. I own several Apple computers, iPhones, iPads, even an iTouch. I've been an Apple shareholder for a long time and I've made a LOT of money on the investment. In fact, what I'm about to suggest might cost me personally. But yesterday's New York Times article surely should make people who defend current tax policy and even propose lower business taxes think a little bit.

Apple reported that it made almost $25 billon last year, but paid less than $2.5 billion in federal taxes, a 9.8% tax rate. I'd suggest that rate is probably lower than the tax rates paid by most of the people posting on this forum. I know it's a much lower rate than I paid last year, MUCH lower. It was also reported that Apple is joining with a number of other large corporations to fund a major lobbying effort to get Congress to pass a "tax repatriation holiday", a period when those companies doing a large proportion of their business outside the U.S. could bring their profits made overseas back into the U.S. without paying any taxes on them.

Let's briefly review how Apple does business. Almost without exception, not one Apple product is manufactured in the U.S. Almost all their products are produced in China. In fact, if you place an order for an Apple product thru their Apple Online Store, your order will be fulfilled directly from their distribution center in Shanghai. Other than Chinese citizens, no American will touch the product you order other than the FedEx employees who deliver it to your home. If you buy an Apple product at a brick-and-mortar Apple store, the products will be shipped there directly from China and only the Americans working in the store will be part of the supply chain.

Apple's profits doubled between 2010 and 2011. It as become the most valuable company in the world. Like most large multinational companies, Apple employs an army of tax lawyers figuring out ways wherein they can set up subsidiaries to do business in states or countries with low or no income taxes and then allocate income to those subs to minimize taxes. If you want to describe this activity as taking advantage of tax loopholes, that's exactly what it is. Many large corporations paid even lower tax rates than Apple in 2011; more than 30% of the Fortune 500 companies paid no federal income taxes at all last year. (Let's see, that's about half the individuals and 30% of our largest companies not paying any taxes to finance our government? That can't be right, can it? That would result in a big budget deficit, wouldn't it? Oh, I forgot...we have a big deficit!)

So when we hear the GOP mantra that changing tax policy other than further reducing corporate taxes will hurt job creation, it seems to raise the question which is the tag line on the frequently broadcast MSNBC political ad...

"Hurt the job creators? Really? Then where are the jobs?"

Is everyone in the U.S., individuals and businesses, paying their fair share in taxes? If there was ever an argument for a major change in tax policy, this is it.

How about this for a question....which tax change would have a more positive effect on the U.S. economy? Further reductions in corporate income tax rates, or a reduction in personal tax rates, even if corporate taxes were increased to make such change "revenue neutral"?

Wanna call that "income redistribution"? Go ahead. I'd call the current tax code arithmetic that doesn't add up.