Quote:I dont see how that is possible since Apple doesn't report income made in Ireland to the US.

 

This article is very informative as to the corporate tax structure:  http://europa.eu/rapid/press-release_IP-16-2923_en.htm

 

Here's the deal... Apple owns a separate entity in Ireland (Apple Sales International) that has sales in Europe.  This income is not taxed in the US in the first place.  There would be no foreign income credit... so I am disagreeing with the premise that this will fall back on American taxpayers.  The income wasn't going to be taxed here anyway.  See what I mean?  

 

And about the corporate tax rate...  What do you suggest we do?  How do you beat Ireland's tax deal?  That would require our government also making exclusive deals with certain corps like Apple.

 

I appreciate that link.  I'm starting to get a better understanding of how this all works.  In some ways it kind of amounts to money laundering, only in a legal way (U.S. law).

 

Now where it comes back to U.S. tax payers is not nearly as complicated.  Both "shell companies" set up by Apple in Ireland fall under Apple Inc. (Apple Sales International and Apple Operations Europe).  If the "mother company", in this case Apple Inc. has to pay the tax, they in turn get a dollar-for-dollar tax credit on corporate taxes paid here in the U.S. under the foreign tax credit.

 

As far as what I would suggest we do, I would say that we need to lower the corporate tax rates here to be more competitive with other countries.

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