Apple Shifts Taxes to Ireland Where There Are No Taxes

Could Apple's Encryption Issues With The FBI be backlash form the Billions of dollars they don't pay in taxes? 

It's no secret that multinational companies from the United States travel abroad to get better tax rates on the profitable sales. Apple, Google, Amazon, Starbucks, McDonald's pretty much all the big-time companies that do business globally. This is has been a problem for the United States for many years. Not only is the Manufacturing leaving the country, but the money as well. Billions of billions of dollars that would be going to the United States in taxes is left on the table at a low or no tax rate all.

The assumptions that these big multinational companies are willing to come back to America to pay a high 39% tax rate is somewhat ridiculous. Being charged such a high rate when you can go to another country and be taxed less is what many companies look to do. The money they save ultimately goes back into their research development, payroll and salaries, or shareholders of which major companies need to continue to strengthen that company.

Apple finds themselves any particularly troubling environment. More than 60% of their profit is created outside the United States, with manufacturing facilities all over the place. Apple has created three separate Ireland based companies that owns the intellectual property on Apple products. Although the innovation, development and design, and all the cool stuff that happens with Apple comes out of Cupertino California. Troubling to say the least.

Let's take a look at how it's done first.


Unfortunately the United States and the big lobbyists should take some responsibility and work at changing this. Unfortunately the political climate in United States is mired with rhetoric rather than true solutions. Lawmakers created the aggressive tax laws that made working in a global environment outside of the United States so appealing. A long line of legislators sold their souls for money when the outcome wasn't in the best interest in keeping American-based companies in America.

Although no one would say this out loud, we know the government is not always fair. We also know opening up a secure phone system with a backdoor leaves Apple products open to any hacking that could potentially be disastrous. I'm sure things like this have happened before where law enforcement officials have needed to get into private materials from a suspect. Usually it's done behind the scenes of public scrutiny and not a global issue of security. I wonder why this wasn't done in this case.

Tim Cook testifies on Capital Hill with accountants.
Part# 1: Time 36:41 

Part# 2: Time 57:46

Could the issues that Apple faces when it comes to encryption and security be FBI carryover from it's tax spotlight that's shined on one of the biggest global corporations on earth? We don't know what the outcome will be, but we know you can't fight politics and the machine that runs it.