Tonight Apples CEO Tim Cook was on 60 Minutes and 60 minutes asked some tough questions.
Why do you hire workers in Communist Red China (to make your products) and not US Citizens in the United States? (It was worded a little differently but it was generally the same idea)
Tim said nobody knows how to make Apple products in the USA. People in the USA have no "vocational skills". In China they must offer a class "How to make an Iphone". But in the USA no such classes are offered and Apple (the most profitable company on the planet) doesn't have the resources to train anyone.....I guess.
So Apple MUST use slave laborers in Communist Red China because there is simply no other way. Think Different.....
I love hearing CEO's talk about how people in the United States don't have the education to do a job........
This in a country where student loan debt is now exceeding $1,200,000,000,000.00. That always brings a smile to my face.
Make sure you pay back your student loans kids.....Oh and sorry you are not educated enough to do any jobs. Enjoy living in your parents basement for the next 20 years.
The real reason Tim Cook prefers to hire slave laborers (in Communist Red China) is because he can treat them like sh*t and nobody cares.
Workers making Iphones in China would rather kill themselves (literally) then make any more Iphones. But you don't need to worry about that (anymore) because Apple has solved that problem.
Now they have suicide nets hanging all around the buildings so when their workers do jump they no longer die. The nets catch the disgruntled workers and they can then be (reprimanded) sent back to work. Problem solved. Tomorrow when you go to work look up and see if there are any suicide nets. I am going to guess the answer is no. I am pretty good at guessing these things.
Then 60 minutes asked why Apple doesn't pay their fair share of taxes. Tim said they do pay their fair share. Tim is a liar.
Apple....Google.....and lots of other companies hide their profits overseas so they do not have to pay US Taxes. Apple made it sound like this revenue was earned overseas, and was therefor not subject to US Taxes..... but like I said......Tim is a liar.
The money is earned in the United States and moved to Ireland (and hidden there) to avoid US Taxes. In Ireland Apple pays 2% in taxes. In the USA Apple pays 14% in taxes....And then complains they pay too much.
All in all the United States loses 90 Billion each year because of companies and their hidden profits. But don't worry because the government will cut something you care about to make up the difference. It will all work out in the end.
Based on its public filings, the company pays just under 14 percent of its income in taxes worldwide, according to Scott D. Dyreng, an assistant professor of accounting at Duke University’s business school whose research specializes in the actual tax rates of large U.S. companies.
By shifting income from countries where they operate to offshore tax havens, multinational companies such as Apple, maker of the iPhone and iPad, can manipulate their tax rates and boost their profit.
“Apple has shifted enormous amounts of profits from the United States to an untaxed entity overseas. That’s the issue.”
Apple, Google Inc., Yahoo! Inc. and other companies cut their tax bills using “transfer pricing,” transactions between subsidiaries that allow them to move profits to tax havens and expenses to higher-tax countries. Such strategies cost the U.S. at least $90 billion per year, according to Kimberly Clausing, an economics professor at Reed College in Portland, Oregon.
The 30.5 percent rate asserted by Cook is based on Apple’s reported U.S. pretax income last year of $19 billion, about a third of the company’s worldwide pretax profits.
In fact, Senate investigators raised questions about whether Apple shifted billions of dollars offshore that should have been included in its U.S. income. Apple has attributed $30 billion in income since 2009 to an affiliate that is incorporated in Ireland, where it has no employees.
The company’s tax rate worldwide is driven down because Apple’s Irish affiliates pay taxes at a rate of just 2 percent, the Senate Permanent Subcommittee on Investigations found. Apple’s worldwide rate was just under 14 percent both last year and over the past decade, according to Duke University’s Dyreng.