This week, the United States Senate has released a report detailing the types of international tax shelters Apple has used to avoid paying US federal taxes, as well as taxes in Europe. The amount of tax savings may be surprising to the uninformed; up to $74 billion over 5 years. It was not shocking to me when the panel also determined that the single largest US corporation did not break any tax laws to accomplish this. Yet, even though no laws were broken, Apple CEO Tim Cook is speaking before the congressional committee to explain the company’s actions.
The whole thing is a sideshow though. Independent journalists have been pointing out these loopholes for decades among all the largest United States corporations. The irony is these loopholes would not even exist if it weren’t for the very same people carrying out this investigation. And these very same people are not very likely to change anything, because lets face it, those who fund their campaigns earn the most from these loopholes in the first place (I’m not suggesting here that Apple is behind these loopholes either, although I wouldn’t be surprised if they had tax lobbyists like every other public company).
It’s always good when the media sheds some light on stories like this. However, without any serious changes to campaign finance laws, we are not likely to see any big changes. And on top of that anyway, multinational company taxes are complicated by the simple fact that they operate in multiple countries, and no country’s tax codes look alike. A real solution to this “problem” would need to be met with international support, and we all know how easy that is.