I don’t even know what to say about Cupertino Mayor, Barry Chang. He complains in an article The Guardian that he showed up unannounced at Apple’s headquarters and was denied a meeting—I assume with Tim Cook–he was asked to leave.
No shit! You don’t just show up at any company and get a meeting with the CEO.
He then goes on to complain that Apple should give him $100 million to fix the city’s infrastructure. To be clear, Apple pays every cent of taxes that they owe, including to Cupertino. Apple is a publicly traded company that put Cupertino on the map–they have a fiscal responsibility to its shareholders, not a mayor that is running for a higher seat in government.
If Cupertino has issues with traffic, they should just ban businesses from locating there. Problem solved for the city of Cupertino–good luck in the future.
Counsel members might want to put a leash on that dog.
they paid 9.8 million in taxes.. on 150BIL in profit. (2012)
every penny in taxes.. all of them or not.. 10M is peanuts.
Apple is still taking advantage of the B2B deal Cupertino gave them in 1997… where was Apple in 1997… so who was giving who the deal?
is it too much to ask? 100M?
you ever try to drive near that campus during commute hours?
it sucks.
Umm.. They didn’t make 150 billion in profit in 2012. Also, most of their profit is NOT in the USA.
The lion share of it’s profits are in other countries, in other currencies. The US cannot TAX on non-US currencies, can you imagine the cross border tax wars we’d see if that line was crossed? Only on the profits made in the USA. Thats it.. period. and they payed a HELL of a lot more that 9.8 million in taxes in 2012..
Where did you get your info, or did you just make that up?
Now, some ‘claim’ they only paid 9.8% in tax in 2012 in the US.. but what they are doing is adding in all profit from outside the USA. Thats NOT how that works; and it shouldn’t be. They paid, on all US profits, 25.2%, in 2012. Thats a fact.
The world today is an INTERNATIONAL market, where companies have to pay taxes in respective countries. Most just don’t get it.
Can you imagine if the US started imposing taxes in the EU, S Korea, or Australia, or Brazil? So where would the line be? Only businesses based in the US? ok, so what if they do business in Brazil? Do we force Samsung to Pay extra too? no, ok.. so businesses leave the US as their base .. then pay some other country thats offering lower taxes?
See, it’s can of worms the second you start saying outside US profits should come to the US and be taxed too.
This was a known problem and yet the city council gave Apple permission to build the campus. They made the bed. Now they have to lie in it.
I don’t know why Jim feels he needs to be an Apple apologist all the time.
Yeah the mayor was crazy to think he could walk in and get a meeting but to say Apple pays “every cent they owe” is a loaded statement.
Maybe this is an opinion piece?
He should get Google and FacePage and all the other Tech companies to do so as well.
Though they all do things like have buses that bring people in because rent is out of control in the SF Bay area, and that buying a house or renting near where they work is totally out of reach for them. $3K plus for a 1 bedroom?
Perhaps the “Mayor” should STFU and maybe work on getting affordable housing? Keep the money that Apple and other companies are paying their employees in the area rather than scattered out in the SF bay.
Congratulations on figuring out the meaning of the word “blog” and what kind of things get posted to them.
Just to add to your excellent bit:
http://mashable.com/2013/01/05/apple-taxes-2012/#5XzH6.yxHZq5
“The California-based company paid $6 billion in federal corporate income taxes in the 2012 fiscal year, according to a statement Apple provided to The New York Times on Friday, in which it emphasized just how much money it pays back to the federal government annually.
‘In fiscal 2012 we paid $6 billion in federal corporate income taxes, which is 1 out of every 40 dollars in corporate income taxes collected by the U.S. government,’ Apple said in the statement.”
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Lots of cities in the Bay Area are facing this same kind of problem. They’ve bent over backwards to accommodate commercial development and big campuses of buildings for high tech, biotech, etc., and haven’t done much at all to try to balance out those offices with enough nearby housing so that the roads aren’t constantly filled with the cars of people commuting in to work in them. Plus most of those campuses are near freeways, but not so convenient to transit like Caltrain. It’s the same story in Mountain View (Google), Menlo Park (Facebook), Palo Alto, Sunnyvale, Santa Clara, San Jose, etc. San Francisco’s mayor and city council do the same thing.
Of course the residents of these cities are going to fight tooth and nail against any kind of high density housing anywhere near them. But the city governments still have culpability in terms of zoning. They don’t want to zone more for residential because thanks to the legacy of prop 13 they’ll get even less tax revenue over time from residential development than commercial development. Much of the revenue from that commercial development, though, is often given away in sweetheart deal to get big corporations to locate in their city. In that way they can show that they’re “bringing in jobs,” even though, down the line, the city’s infrastructure will suffer and the overall quality of life will go down.
“If Cupertino has issues with traffic, they should just ban businesses from locating there.”
Yes, if the giant corporations that sleep on beds of money have to help contribute EVEN A FRACTION of their hard-earned tax-avoidance to the nation’s crumbling infrastructure then, really, the communists have already won. The plebs who have to use the buses ought to be grateful the world has even HEARD of Cupertino, right?
i get your point re: just showing up and expecting a meeting.
that said, the city of cupertino is clearly within their rights to expect apple to be part of the infrastructure improvements necessary to support their presence in the community. if i were a cupertino resident i would feel exactly the same way: huge traffic challenges, but shitty streets, all caused by apple building one of the most expensive buildings in the world? you bet your ass i’d want them to step up.
I’ll scratch your back on the misguided assumption that you’ll scratch mine.
I think the Mayor needs to be reminded of what Apple is doing for Cupertino:
“Apple says it will contribue $9.1 million in annual tax revenue to the city of Cupertino in it fiscal years 2012-2013. That doesn’t include “one-time” revenue o $38.1 million related to the construction of the campus. Local LOCM +% property tax revenue paid to Cupertino was about $25 million. Apple Campus 2 is expected to annually generate an added $32 million of property tax revenue to the city.”
“Apple says it will fund more than $66 million of public improvements to be “built around the campus and in the City of Cupertino, as well as other community benefits. These include $50.2 million of roadway, traffic, intersection, landscape and utility improvements, $10 million of bicycle and pedestrian facilities, $3.7 million in park land, and a $2.5 million dollar contribution for affordable housing.7 In addition to these one-time capital investments, Apple will annually spend approximately $35 million on a transportation demand management program, to implement the company’s alternative commute program.”
http://www.forbes.com/sites/connieguglielmo/2013/06/04/apple-details-economic-impact-on-cupertino-as-it-readies-new-spaceship-inspired-campus/#1002aa457dae
you lost, bro?
you’re confused — Apple already pays taxes there, as do many of their workers.
WTF are you talking about Brazil.. this is simple City tax… local municipality.. there are tangible impacts.. traffic, sewage, water.. the infrastructure of the area immediately surrounding their campuses.
10M in 2016 is hardly commensurate with the cost of living in Silicon Valley – never mind property values.
Where do you live? Have you ever driven anywhere near infinite loop as part of your daily routine? Apple should build more lanes for 5 miles in all directions.
population cupertino: 60 THOUSAND
capacity apple campus2: 12 THOUSAND
https://en.wikipedia.org/wiki/Apple_Campus
This represents almost 40% of the 8,800,000 square feet (820,000 m2) of office space and facilities for research and development available in the city.
i’m not confused.
i happen to be in the business of design and construction and have been through this exact scenario in many municipalities; i do architecture for a retailer that is sometimes interested in becoming the first big development in a smallish town, and in many cases the town doesn’t have roads, sewers, water, traffic controls, etc. to support the increased load the development will bring. the retailer is then presented with the choice of helping to pay for improvements, or move on to the next exit on the highway.
apple has decided to stay in cupertino. i’m pretty sure that, when they made the decision, the “can cupertino support this much stuff” conversation came up.
if apple is paying around $10M in taxes to the city, that’s probably enough to fund the services apple requires to function in the city. i doubt it’s enough to fund the infrastructure for those services.
As an international business, how many times should you get taxed on every dollar you earned? If a company developed a product in city A, sold a unit in city B for X amount of dollars. What do people believe is a “fair share” to both cities?
It’s never that easy or black and white. We live in an era of business shirking their fair share, and while legal, that only shifts the financial burden to the rest of us…. and if our wages were going up and much as CEO pay does, it wouldn’t matter… but… its no, so yes…. its a problem.
Damn your pesky numbers! 🙂
Small town growing pains.
“.. i doubt it’s enough to fund the infrastructure for those services.”
Then the city should say “No.” when Apple presented their plan. They didn’t, now they want more. Nobody would want to do business in a town with a mayor like this. And no one in city council supports his ridiculous action either, only experts here in the net unsurprisingly.
It’s a problem that should be solved with a law, not by ridiculous action like this.
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