Second, they can afford to pay someone to invest their money wisely, and make sure less taxes are paid; ipso facto and Violia! More money. Apple is a good example of the rich getting richer. The company makes lots of money; more profits than any competitors, and it makes those profits in countries all over the world. That means Apple has enough profit to be able to afford lawyers and accountants to protect those assets, pay lower taxes, and make even more money. Here’s another way Apple spreads the wealth and keeps the wealth.
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Not long ago Apple wanted to sell refurbished iPhones in India but was rebuffed by a government agency. Then Apple agreed to invest a few hundred million dollars in India with a technology center. Every now and again Apple gets clubbed over the head by a government agency in China, and the company announces another investment in the country and all is well for awhile.
See how that works?
The latest has Apple opening a research center in Beijing, a pittance in cost compared to the profits that flow from eager Chinese iPhone buyers. Apple will employ a few hundred workers and the company plans even more investments in China, which has become a very important market.
See how that works?
Apple has so much profit parked away in banks all over planet earth that just the sheer volume of cash causes the company some grief. Apple needs to borrow money so it can pay dividends and buy back its own stock, because it would take a huge tax hit if it repatriated the profits back to the U.S. How crazy is that?
Such financial woes seem to be mounting on Apple, but I’m not too sympathetic. Yet. A new iPhone can be priced at nearly $1,000 so Apple remains intent upon squeezing out every dollar from every sale and pay as little tax as it possibly can. Yet, here in the U.S., Apple pays more corporate taxes than any other technology company.
Maybe Apple should spend some of those gains on better people to manage the money because already the European Union has grown angry and hungry and wants a bigger slice of the tax pie. Wait. No. That’s not right. The EU wants a bigger tax pie to take out more slices. Somehow Apple got a good tax break from Ireland, probably in part by setting up facilities and hiring Irish workers. Spreading the wealth usually gets something in return, and in this case it was much lower taxes than other companies pay.
Apple wouldn’t be able to boost a local economy with new facilities or research centers or stores unless it was making huge profits on products sold in those countries. Spreading the wealth is the way it’s done and Apple has plenty to spread.
That’s how it works.