Part 2-Apple CEO Tim Cook Testifies About Avoiding Taxes

A Senate subcommittee questions Apple CEO Tim Cook about how Apple has apparently legally avoided paying billions of dollars in taxes to the US government by setting up companies in other countries. Part 1 is here: • Apple CEO Tim Cook Tes...

[@philipweh]

Apple is the company in the US that pays the most taxes of all companies.

[@DBLCreations]

+Philip Holman Yeah, and they should, they make a lot of money too ;-). I do love Apple btw :p Just saying....

[@timothybrown7792]

If they were paying this much tax why did this investigation take place? clearly it happened for a genuine reason. I remember watching a documentary in the Uk which claimed Apple were hiding considerable sums of money in overseas bank accounts. If that was a fact, then iam not surprised this investigation took place. amp-theguardian-com.cdn.ampproject.org/v/s/amp.theguardian.com/business/2016/aug/30/apple-pay-back-taxes-eu-ruling-ireland-state-aid?amp_js_v=a6&amp_gsa=1&usqp=mq331AQHKAFQArABIA%3D%3D#aoh=16143210297204&csi=1&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.theguardian.com%2Fbusiness%2F2016%2Faug%2F30%2Fapple-pay-back-taxes-eu-ruling-ireland-state-aid

[@BiNDiViSUAL]

This is when it's not cool being CEO.

[@MaruskaStarshaya]

that's why companies do have CEO :D

[@OprahMemorizedPi]

Tim Cook staying very cool under harsh tone from questioners. Much admiration

[@simonmcsweyn5327]

I think this was lots of smart people talking very smartly. Very honest.

[@simonmcsweyn5327]

Until mr Levin started speaking.

[@xCai22]

man, all those years at harvard law, you'd think he can come up with something other than "shift"

[@WelshDegenerate]

They pay US tax on US profits. They pay foreign taxes, on foreign profits. There's no way around it - that is not a tax haven. The US gov just dislike the fact that they're a US company that has such worldwide reach and is able to have such tax relief in other countries. Well, they're breaking no laws and not only are they not but what company would go out of their way to pay more taxes :/ they're paying the correct taxes in the correct countries. There is no need for this hearing.

[@MaruskaStarshaya]

the thing is: 1.Production (IP, R&D, management) are done in US. "Sales only" happen abroad 2.They do pay abroad only VAT and payroll tax. NONE of corporate taxes have been paid anywhere. 3.They still reinvest in US departments (which confirms 1st statement)

[@MaxCoplan]

Where is the third panel?

[@TheIrishny]

The entire congressional hearing should have consisted of "Hi Tim, on behalf of the entire US government,we would just like to thank you for running a profitable business that,employs 100s of 1000s of people directly and indirectly in America and which pays $6 billion a year in taxes that we mostly waste. Meeting adjourned Cant we get you a cold beer Mr Cook?"

[@terrenceowens8182]

Facts!!

[@hung14nguyen]

is there a part 3?

[@ReaniMacLA]

It's nice to see a comments section on youtube with more mature discussions. The problem is disincentivization - not the decision making process. If the MODELS of tax ethics are globally discouraged from supporting our nation (stealth fighters?) ... the RICHEST company in the world, then how many successful start up companies who don't have the gross nor net will feel compelled to pay?

[@williammaxwell4483]

Cook did such a great job.

[@WelshDegenerate]

Apple is bigger than just the US, it's technology, it's innovation - those other countries should have the only share in the taxes on those sales, as it's the citizens of those countries paying! They pay all US taxes for all US sales. That's proper, plain and simple.

[@prisspross32]

If your watching this video on an iPad or an iPhone you can't criticize

[@valentinovuitton2845]

prisspross32 Tim Cook for president

[@DaveButtons]

Damn...you got me

[@johnjanpopovic4813]

Big goverment inquistion .. Torquemada style

[@notwensi]

I SALUTE YOU TIM COOK......the right person to take over from Steve jobs.

[@WelshDegenerate]

Choosing to re-domesticate that money earned overseas vs. the totally legal option of simply borrowing money and paying less on interest than tax was simply a wise business decision. They would be a worse business if they chose the other way around... so who do the government think they are to think they can bring Apple up on making a business decision that saved them money. It's not illegal or wrong, it was smart. That's what business is - making decisions to make and save money. Tim=Win.

[@rkl08551]

in best interest to "our shareholder" ..the bald guy is giving handsignals and guess who is responding to them...

[@MaruskaStarshaya]

yeah I also noticed it, he was very thrilled

[@Mahalleinir]

Damn this was lukewarm…”Mr. Cook, you guys are awesome right?” “Uh yes Sir I believe we are”

[@kenc.d8200]

Apple has in my eyes always been an honest straight forward company !( I'm not sticking up for Apple !) I'm stating a fact as I own Apple products and they have the best customer policies in my opinion !(. Refunds - no questions asked , return goods , short wait period if any at all on replacement goods ! I don't know anyone else that can match them . I have bought Apple iPod touches and had only one problem with the bottom of the screen button on my iPod touch 2nd generation but this problem doesn't happen at all now . I have owned all generations of Apple iPod touches and love them all . Best invention ever . Keep em coming and I'll keep buying them .

[@MaruskaStarshaya]

being an apple consumer is a course itself lol

[@amazingdany]

The 99%er ordinary citizen would be thrown in jail for pulling the same stunt.

[@higheststrpk]

they're just jealous and refuse to understand the situation correctly

[@ultrastoat3298]

Sathvik Birudavolu wrong idiot. There are millions of US citizens that earn money abroad.

[@MovieTrim]

35:00 gets good

[@apostlepoe]

Mr Levin needs to get back on his medications...

[@lschatz5670]

What an amazing showcase of how antiquated, ignorant, and rude our government is, I feel as though Tim really took one for the team here.

[@carlosisapimp]

i love this so much.

[@m3mario]

50:38 Offcourse it is terrific.

[@ivancarlson953]

why is Levin continuing to repeat his point when the panel get it

[@MaruskaStarshaya]

to stop them denying and changing facts in their favor

[@whylogicalthinking]

we break the law and this is how we purpose you change the law in my favor. I'm going to try that and see how it works for me. smh #Sad_America

[@Sanhlami]

For the most part, the subcommittee had constructive criticism and questions that clarified and improved the event, except for Mr. Levin who asked and criticize the most redundant things. The last 20 minutes was just one big ass circle of statements with Mr. Levin wanting to have the last word and not letting Apple putting it into context. I really hope we get this tax reform they're all talking about!

[@subsoar5734]

here after watching the train wreck of a hearing for tiktok. night and day lol

[@FocusProj]

Apple plays by the rules the Great US capitalism build upon, but now, the US doesn't want to play by their own rules?! The great Capitalists masters don't like when the games doesn't shift the profits to US.

[@lorenzollamas2265]

for some reason, some senators are unsure of what they are saying, somehow....

[@joshuapark3762]

If Levin says shift again, I'm gonna shift this tablet into the wall.

[@DaveButtons]

Josh Park lol

[@subsoar5734]

this was essentially a chance for porter and a couple others to use apple as a way of being like “look at this poor american company getting the shaft by uncle sam. we must help them!”

[@ericplatham]

I'd be willing to bet that Mr. Levin's personal equity holdings includes AAPL.

[@WelshDegenerate]

Borrowing that 17 bill to use domestically and paying that tiny % as apposed to the enormous tax rate on re-domesticating the cash they EARNED OVERSEAS (and already paid tax on over there)... - that was a genius business move...

[@MIT2004]

" All ships ride with the tide!"

[@Hedgehog-ji1bm]

mitino aiken rise not ride

[@Charlie8417]

Senators like Levin need to get a new job.

[@MaruskaStarshaya]

lol, even me being a capitalist myself I think he's a great Senator and we DO need this talks - just to make average american to think twice where his money leeks and why buying "domestic product" you actually sponsor some rich people abroad

[@kenc.d8200]

Don't be Greedy ! Everyone in this world pays taxes and you should not be exempt . How do you think hospitals get built , taxes pay police , ambulance , and other vital infrastructure so yes paying tax is very much important . Apple produce virtually the best quality electronics in my opinion in the world ! Their products are second to none ! It's not only Apple that have to pay taxes it's every company so let's not pick on Apple just because it is a multi billion dollar company as there are many giant companies in the world also that pay their share of taxes like oil companies and such ! Anyway this is between the company/companies and the government of where they work out of ! I hope that all involved can work this out and not sink any companies . The CEO,s and government officials can work together and not destroy business and still satisfy governments tax requests which is natural as mentioned that everyone pays tax no matter where you are or what you buy . Good luck all.

[@fiending]

where was it shifted to?

[@MaruskaStarshaya]

to someone's pocket (try to guess who's)

[@ItsZackk]

Whoever this Mr Levin is needs to go. I thought the other members of the sub committee were genuinely trying to understand apples processes and ask Cooks opinion on current and future tax codes. Mr levin sounds like an angry old man who's upset that this company isn't assimilating itself into an unfair and destructive tax system.

[@MaruskaStarshaya]

lol he understands that not tax rate forced them to do so. Hello from 2019 - tax decrease occurred, still offshore

[@sodaman2006]

Who signed that agreement? Don't you you work for Apple? lol

[@Partypoppers55]

Shift shift shift shift shift my name is Senator Levin and this is the only word I know how to say. Shift

[@MaruskaStarshaya]

yeah, wait until your employer will shift you [away] in a favor of "expenditure cease"

[@jorgemaldonado585]

Just at the end, isnt' someone saying "que de mierda all of three" ?

[@terrenceowens8182]

Steve Jobs could not have found a better replacement

[@kastenmuller4003]

1920 ?

[@thestonemaster81]

why is a company in front of Homeland security and Government affairs subcommittee SD-106 They should tell that subcommittee 35% is not working for you try 50% see how that works for you . You will lose even more. You better understand that the government spend way to much and sticks there nose in everyone business

[@wongtab]

That Levin spent 10 minutes talking about.. well nothing

[@WelshDegenerate]

Levin is driving me insane by continuously saying 'shift profits'... they're not SHIFTING profits; those profits which are being held in those Irish holding companies are profits made IN IRELAND and in other countries... America doesn't eternally own the rights to something just because it was the country of origin. People are bigger than their accidental birth place, they are doing no shifting - all US profit, stays in the US. All international profit, stays international. As it should.

[@robertm3918]

There blood money from Samsung

[@Partypoppers55]

I just had a new idea............. It's called shifting

[@omegapointil5741]

Just apply tariffs where cooperation isn't forthcoming. Expect that a business will find and take the path of least resistance, therefor those exits have to be shut off. And, imports from countries that compete with taxes get the tariff as well. Our hand has been forced to invoke draconian measures if good faith is nowhere to be found. You get tired of chasing a Barry Sanders around for their social responsibility. Its like the film Titanic where the poor were kept in the basement in cells while the ship was sinking. Taxes are the price we pay for civilization. To live in our house and eat our food, you're going to have to pull your weight.

[@digerpaji]

incentive business instead of discouraging people from starting a business by taxing the crap out of them.

[@MaruskaStarshaya]

you talking about small business, but Apple is giant one, it doesn't need those favors to keep going

[@WelshDegenerate]

Levin keeps saying the majority of their profits is not taxed... no, the majority of their OVERSEAS profits IS taxed, in those respective countries. Those are profits made from people in other countries... so what the f*k dos Levin think gives the US Gov the right to demand US taxing of profits made elsewhere in the world. Yes the company originated and is HQ'd in the US... but so what.

[@FuelTim]

As they said, they are one of the largest tax payers in the country. Maybe after you hit puberty you will understand these adult topics.

[@Super405807]

Agreed. He has a chip on his shoulder

[@nicholassingh1476]

damn

[@elifschitz]

An honest question to all people in Law from someone who doesn't know shit about fuck: Is it helpful to hold such a respective tone as Tim Cook does? Or is it more effective to be emotional and "honest" if someone is busting your balls? Does it matter if you're being questioned by a Republican or a Democrat?

[@doceigen]

If Apple can do it, why can't individual American citizens do it?

[@KolbyBourgeois]

Go ahead do it nothing stopping u.

[@doceigen]

Kolby Bourgeois Oh, I am! Everyone should succumb to global socialism and seek to cripple the U.S. economy, it's your duty. -This message brought to you by Chinese KZbin Comment Outsource Services.

[@doceigen]

***** Reality and truth? Sorry, some of YOU will never get those. And that's ' you're '. It's a contraction. Learn.

[@doceigen]

***** Pepsi is better.

[@dr_aaronplummer]

Its Americas fault..they would be lucky if these companies dont leave all together.. these business have long painful stories of visionaries rising above the odds of success in this harsh reality. they deserve to have their own money. hopefully the new president changes this stupid tax thing or all of our companies may move to Canada or somewhere else.

[@pdentremont1]

someone has to explain to these people companies do not pay tax, they have expenses. The Tax expense will get passed on to the consumer as a cost of goods.

[@Eygor007]

Lower tax rate to a single digit number? are you fuking with me? ok ok lets lower from 35% to 25% but only to companies who bring back all of the labor that they currently have in Asia.Tim if Apple was really an American company it will bring back the revenue generated internationally.

[@AcousticAce2]

I think you're misunderstanding. Regarding products they sell in the United States, they said they paid 30.5% effective federal income tax on that, which seems about right to me. What Cook said was that they already paid taxes to other countries for all of the money that they put in their holding companies from sales in other countries, and that the single-digit tax rate was only in regards to bringing that money into the United States. So that adds taxes additional to what they already paid in other countries, and so a single-digit tax rate is very reasonable in that sense and is necessary in order for U.S. companies to be competitive with other international companies like Samsung (because they were already taxed on it elsewhere). A single-digit tax rate on foreign money that they decide to bring into the U.S. ends up being an excellent situation for the United States because it brings in cash that was generated from sales overseas that we otherwise wouldn't have in our economy. The net result is that it would grow our economy and create more job opportunities in the States, then those new job opportunities produce local tax payers, and circulates in the economy even more, etc., and thus Tim Cook's analogy that the "rising tides lifts all boats" makes really good sense.

[@marceldiezasch6192]

+Allen Mackley Yeah, they "paid" taxes, sure. They are screwing every single european country to use their tax deal with the irish government to basically pay near to zero taxes. But in general Cook is right, that money hasn't been earned in the US, so US government should really shut up.

[@topstarnec]

Tim Cook is sneaky

[@kastenmuller4003]

1920 ?