Ahead of Tim Cook's congressional testimony tomorrow about Apple's tax policies, the company has released a 17-page statement (link opens PDF) outlining its tax policy.
In the statement outlining the testimony it will give, the company points out that it employs tens of thousands of Americans, makes products that benefit tens of millions of Americans, and pays billions of dollars in corporate income and payroll taxes to the Treasury each year.
The company also "welcomes an objective examination" of the U.S. corporate tax system, which Apple believes "has not kept pace with" the rapidly evolving technologies and the economy. Apple says it encourages a comprehensive tax reform to promote growth and allow American multinationals to remain competitive.
Apple says it has helped create or support approximately 600,000 domestic jobs, of which 50,000 are Apple employees and 550,000 are indirectly related to other fields like manufacturing and logistics, among others. The company believes 290,000 jobs have been created from the "App Economy" from its App Store, and Apple has paid out a cumulative total of $9 billion to developers.
Apple also notes that it may be the "largest corporate income tax payer" in the country, paying almost $6 billion in fiscal 2012. It estimates that this represents 2.5% of all corporate income tax collected by the Treasury last year. Apple expects this figure to rise to $7 billion in fiscal 2013.
In Apple's view, a comprehensive reform would include a tax system that is revenue neutral, eliminates all corporate tax expenditures, lowers income tax rates, and implements a reasonable tax on foreign earnings that allows capital to move freely. Apple argues that the current tax system was created under an "industrial era" that undermines U.S. competitiveness in a "digital economy."
Cook is to testify before the Senate's Permanent Subcommittee on Investigations in connection with its inquiry into the tax practices of multinational companies.
The article Apple Touts Jobs It Creates, Taxes It Pays originally appeared on Fool.com.Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.