This is going to take a few minutes here. Please read it all and wait to pass judgement.
Summary:
You're squeezing money out of the wrong people, primarily the consumer, the employee and the shareholder.
A link from Harvard Business Review for those who don't believe me:
https://hbr.org/2014/08/who-pays-corporate-taxes-possibly-you
Ok... in my own words.
So Apple taxes are going up... that means that rich bastard Mr. Apple will whip out his checkbook and write a big check to the US Treasury, right?
Oh wait. There IS NO Mr. Apple.
You see... Apple is a Corporation. That means that it's a business that is quite literally cut up into 16.7 Billion little pieces called SHARES.
Each of those shares is worth around $148 as of today.
But WHO owns those shares you ask... some rich bastard right?
Chairman of the board Art Levinson does indeed own 4.6 million shares of Apple. Tim Cook owns 830k shares. And the COO Jeff Williams owns 490k shares.
But wait, WG... you said Apple is split into 17 BILLION shares, right??
Well... Vanguard owns 1.3 BILLION shares of Apple.
Oh wow, Vanguard! Isn't that the same company that runs my company's 401k and investment accounts? Yes sir.
BlackRock, Berkshire Hathaway... etc
But wait, there's more. CALPRS the largest California State pension fund holds more than $4.5B of Apple stock. CALPRS pays the retirement benefits of retired firefighters, school teachers and cops...
So bottom line it. Who pays increased Corporate Taxes?
Remember how I said Art Levinson owned 4.5 million shares of Apple? Art doesn't give a shit if Apple's Corporate Tax Rate goes up. In fact, he PREFERS it compared to the alternative.
Corporations have a fiduciary responsibility to the shareholders. They will adjust their business plan and operations to maintain a level of profitability. 17 billion shares of the stock are relying on that value to be preserved and expect it to go UP.
Remember how Taiwan Semiconductors just announced a 10-20% increase in chip pricing? What will Apple do? Will they eat the price increase of the chips and reduce profitability? Or will they increase pricing on products or cut labor costs or reduce infrastructure costs?
One thing they sure as fuck WON'T do is eat the cost.
Corporate Taxes? It's just another business expense. No different than the cost of chips, Gorilla glass or Chinese labor.
There are 3 alternatives for Corporate tax increases:
1) Consumers pay more for products, aka consumers pay increased Corporate Taxation.
2) Apple reduces the workforce or cuts back salary to compensate, aka employees pay the tax.
3) Apple allows the profitability to drop, lowering the value, aka the stock price... hurting investors including school teachers and firefighters.
Back to Art Levinson...
He doesn't give a shit.
iPhone prices will go up, the cost of AppleTV will go up and maybe iCloud will become more expensive but HIS shares will continue to appreciate and he pays SHIT in taxes.
Corporate Taxation is a cowards move. We need to go and get the money where the money IS.
Wealth Tax, NOW. Per-Transaction Wall Street fees, tax all Capital gains as regular income, 50%+ top marginal rates, etc etc... you should NOT be able to make $50K in an afternoon on the golf course while the stock market is up and pay 15% tax rate...
What are politicians afraid of?
And making the $5M+/yr pay more taxes?? So the guy making $4M/yr is fairly taxed? Wtf????