AMITIAE - Sunday 12 May 2013
Cassandra - Taxes, the Senate and Apple (2): The New Moral Compass |
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By Graham K. Rogers
I found myself in an odd position when Rand Paul made his opening comments. I had to agree with everything the man said, although I had always rejected his political philosophies and utterances in the past: he hit the nail on the head particularly after his second round of comments, following the questioning of early witnesses. Levin who had been angry after the first attack, was still infuriated but began to shift his position to appear more conciliatory towards Apple for the time being. McCain backed him up in comments aimed at Paul, but neither could bring themselves to speak the Senator's name. Later too, Rush Limbaugh similarly attacked the sub-committee, particularly Senators Levin and McCain, for their moralising stance against Apple at this session.
This was a theme that many on the committee and giving evidence were clear about: all was legal. McCain and Levin, however, seemed more concerned about the moral aspects of avoidance. A view that has little substance in law. Even they had to admit that the system was not working and the real problem was not to vilify (as Rand Paul put it) a major US company, but to identify areas in which improvements could be made. Some of the greatest names in business history, like Andrew Carnegie, Mellon, Ford and others would not recognise this new moral compass by which the good senators, especially former GOP presidential hopeful John McCain, seeks to steer Apple by.
As a note, wile this was all going on, the government of Ireland, by way of its deputy Prime Minister said that it is not responsible for Apple's low international tax rate. Over to you, USA.
As Rand Paul had pointed out, everyone in the room - even those attacking Apple - would seek to minimize their tax liabilities and not maximize them, by taking full advantage of loopholes and allowances. Both Levin and McCain showed deference to Tim Cook to such an extent that they appeared to be almost fawning on occasions, weakening their staged indignation. While Cook along with CFO Peter Oppenheimer and Phillip A. Bullock. By the end, however, Levin was back on his high horse, despite the admission by him and others that nothing illegal had been done and that the fault really lies with the legislators (including Levin and McCain) for allowing such apparent injustices in the tax system to exist for so long.
Indeed when Tim Cook was being questioned the two ringleaders were particularly unctuous, yet when he no longer had a chance to speak to the subcommittee the attack dogs were out again as if nothing that had been said by all offering their opinions that day had mattered at all.
Useful Sources:
Graham K. Rogers teaches at the Faculty of Engineering, Mahidol University in Thailand where he is also Assistant Dean. He wrote in the Bangkok Post, Database supplement on IT subjects. For the last seven years of Database he wrote a column on Apple and Macs. |
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