Does Apple Inc. (AAPL) Pay Enough To Uncle Sam?

Apple’s take
Of course, Apple contends that its AOI subsidy doesn’t reduce its tax liability. In Apple’s testimony, it writes, “If AOI did not exist, the funds it receives from other foreign subsidiaries through dividends would simply remain in the custody of those subsidiaries and would not be subject to U.S. corporate income tax.” It also defends itself and writes that it reports taxes according to accounting standards.

Apple concludes its testimony with a call for corporate tax reform that is revenue-neutral, eliminates corporate tax expenditures, lowers corporate income tax rates, and implements a reasonable tax on foreign earnings.

Future debates
Apple, no doubt, is an American success story. And, finding out a fair and effective way for it to pay taxes will allow the company to keep the U.S. the home of such innovative companies. If Apple didn’t go through such legal means to shield itself from taxes, shareholders might not believe the company is maximizing value. Others believe Apple isn’t contributing its fair share to society. What do you think? Leave a comment in the box below.

The article Are Apple’s Earnings Taxed Enough? originally appeared on Fool.com.

Fool contributor Dan Newman owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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