Apple Defended by US Treasury: The Rules Must Be the Same For Everyone

Apple has allegedly made a special deal with Ireland to reduce its European tax burden to 2%. Apple is also deferring US tax payments by declining to repatriate its overseas earnings. Apple is, however, utilizing the US Treasury, at the expense of US taxpayers, in its defense against a potential $19 billion tax judgment.

To prevent free riders from utilizing “intra-national” competition to suppress tax rates and tax revenue to unsustainable levels, European Union members have agreed to bar tax-advantages and other state-aid that is not available to all businesses. Doing so prevents EU countries from undermining each others’ regulatory and tax capacity.

European Union members have also agreed to enforce this prohibition by requiring member nations to reclaim any taxes that should have been paid. These are the rules. The US Treasury should defend against the unfair targeting of US-based companies, but it must also hold companies like Apple accountable for taxes owed.

Read more at http://www.washingtonoutsider.org/editors-blog/apple-defended-by-us-treasury-the-rules-must-be-the-same-for-everyone