This week’s Fix the Tax Code Friday is related to last week’s question – but with a twist. Earlier in the week, I posted about the potential for corporate tax breaks for companies who are repatriating funds to the U.S. Among the companies which appear to have interest in such a move is Apple, which recently hired a DC-area lobbying firm to further their interests.
So today’s Fix the Tax Code Friday question is:
It would be silly of these companies not to engage in legal activities that could potentially save them (and their shareholders and employees) millions of dollars.
Does it concern you when companies like Apple get involved with tax accountants? Do you think better or worse of companies that make reduction of taxes an issue? Tax Girl, you know I love you but I take issue with about every premise of your question.
Do readers have an issue with repatriation? I do. Silly tax policy. Maybe not bad public policy, but I like a good old fashioned tax code that collects money in a fair, simple, efficient way. We don’t have one. So don’t go throwing in a tax holiday as a way around it. Fix it.
But whatever the issue is, why question Apple on it’s decision to hire a lobbyist? If you don’t like what Apple is paying lobbyist to advocate, call them on that. How do you know what Apple’s lobbyist are peddling? It’s all public and reported on a bunch of web sites like opensecrets.com.
So hiring a lobbyist (full disclosure, I am one. not-so-full disclosure, my name’s not really Brash Tax) isn’t the point. What Apple lobbies for (or against) is. And for that they have to answer to their shareholders and customers. If Apple lobbies to end world hunger, like or dislike? If Apple lobbies to legalize baby seal clubbing, like or dislike?
Lobbyists can be used both offensively – to legislate your competition out of existence or defensively – to keep your business from becoming a crime, heavily regulated or high taxed.
Apple would be irresponsible if it did not use lobbyists to protect itself. Google, Microsoft, and Autodesk and many other software/hardware firms lobby to get monopolies, become “standards” or other advantages.