Quote:The EU ordered Ireland to recover $14.5 billion in back taxes as Apple had made illegal agreements with Ireland tantamount to state support. The money is going to Ireland, not the EU, though the EU would necessarily get some of it as that $14.5 billion is added to the amount from which Ireland's EU membership dues are calculated from. 

 

I'm not getting where the "illegal agreements" part fits.  It's my understanding that Apple has paid the corporate rate in Ireland.

 

Quote:Nobody forced Apple to have operations in Ireland where they have a deal that makes their effective tax rate basically 0.  That's fine that Ireland is willing to play ball and create jobs, ect. but then Apple is able to turn around and send the products back here to our country and reap the benefits of our market.  It's kind of a cheap trick to maximize profit... but hey, everybody is doing it.  

 

I think this tax decision by the EU will likely be overturned after an appeal.  Even if they are forced to pay, I dont think it will have much affect on the American tax payer.  The headline I think is misleading.  It sounds as if the government will bailout Apple with taxpayer funds to pay the tax. It's more of an indirect impact.

 

Regarding the first part in bold, that's exactly what a lower corporate tax rate does.  Create jobs.

 

As far as the second part in bold, eventually it will affect U.S. tax payers since it will end up being less tax revenue coming in.  Every dollar that Apple pays in taxes to a foreign country can be deducted from their U.S. tax bill.

 

Quote:Haha poor Ireland, everyone knows they are only there because of the low tax rates. They don't want Apple to pay more taxes otherwise they risk losing business.

 

I'm assuming by "they" you are talking about Apple as well as many other companies.

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