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Letters

Ending Apple’s Offshore Tax Dodge

To the Editor:

Re “Apple, Congress and the Missing Taxes” (editorial, Aug. 31):

While the editorial is spot on in calling for an end to the deferral process, it sorely missed the mark in characterizing President Obama’s proposed repatriation rate as “reasonable.” Tax holidays incentivize bad business behavior and reward companies that extract wealth from communities with a deep discount and a clean conscience.

A 14 percent rate on repatriated funds previously held offshore is a handout to large multinational corporations at the expense of small-business owners and our customers. Far from reasonable, it’s been estimated by the Main Street Alliance that the proposed holiday rate would be a $20 billion gift to Apple.

With their nearly unlimited access to capital and ability to buy in bulk, industry giants like Apple already hold a competitive edge over small to mid-sized businesses, which can’t afford to hire high-priced tax accountants and lawyers to devise tax avoidance schemes.

To level the playing field for Main Street businesses, Congress must act to end deferral, stop incentivizing offshoring of revenues with tax holidays, and hold all companies accountable to pay what they owe when they owe it.

DEBORAH FIELD

Portland, Ore.

The writer, a small-business owner and former accountant, is a member of the Main Street Alliance.

To the Editor:

I find it infuriating that Apple, Microsoft, Google and many other highly successful so-called American companies have found legal ways to avoid paying anywhere close to a fair share of taxes on their profits. Their executives and shareholders win and the rest of us lose.

I find it even more infuriating when pharmaceutical companies play the same tax avoidance game, but also jack up the prices of essential and unique medications by several hundred percent, and expect taxpayers to foot the bill through federal insurance programs.

How many ordinary Americans are disadvantaged by these practices — people who are not earning the big bonuses and dividends generated by these practices, but rather have to pay the increased taxes to cover them? Come on, Congress, do something. At least pretend you represent the people.

DON CARLSON

Boston

To the Editor:

Apple and other companies are only doing what our laws and those of their host countries abroad allow them to do. The problem, as you point out, lies with our own tax laws and enforcement. A way forward would be to apply basic accounting principles to reformulate our tax policies. These include:

1. Profits should generally be taxed in the country in which business is conducted and profits are generated.

2. Profits should be taxed in the year in which they are generated.

3. Like individual American citizens, American businesses should be taxed at home each year on their combined “worldwide” income.

4. Corporations should be entitled to an offsetting American credit for taxes paid to foreign countries if we have bilateral tax treaties with those countries. This should allow us to modify our current deferral policy of profits not taxed until repatriated.

To further discourage tax inversion and offshore profit harboring, we must review our own tax rates and make them more competitive with other nations, while also persuading countries like Ireland that are members of the World Trade Organization not to adopt a very low-rate, tax haven or “pirate” status.

CHERIAN THACHENKARY

Atlanta

A version of this article appears in print on  , Section A, Page 24 of the New York edition with the headline: Ending Apple’s Offshore Tax Dodge. Order Reprints | Today’s Paper | Subscribe

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