Editor’s Note: Related tickers: Apple Inc. (NASDAQ:AAPL)
Republican divisions may hinder party’s momentum (BusinessWeek)
A string of unrelated events is highlighting divisions among Republicans just when they’d like to show a united front and take full advantage of President Barack Obama’s latest political problems. Tensions between libertarian-leaning and more mainstream Republicans were on vivid display Tuesday as Sens. Rand Paul and John McCain clashed over Apple Inc. (NASDAQ:AAPL)‘s tax-avoidance strategies. Paul, a tea party favorite and son of a libertarian hero, had feuded earlier with McCain _ the party’s 2008 presidential nominee _ over the use of unmanned aircraft to kill suspected terrorists.
Apple Tax Rate Ignores Profit Shifting Offshore (BusinessWeek)
Apple Inc. (NASDAQ:AAPL) Chief Executive Officer Tim Cook provided a figure to Congress on Tuesday that U.S. companies rarely disclose: its federal tax bill. Apple Inc. (NASDAQ:AAPL) paid $6 billion last year — a rate of 30.5 percent. “That’s more than $16 million each day,” Cook said. “We pay all the taxes we owe — every single dollar.” While nobody at the hearing questioned the figure, it provides a distorted picture of Apple Inc. (NASDAQ:AAPL)’s total tax burden. Based on its public filings, the company pays just under 14 percent of its income in taxes worldwide, according to Scott D. Dyreng, an assistant professor of accounting at Duke University’s business school whose research specializes in the actual tax rates of large U.S. companies.
Missouri reaches settlement with Penguin over e-books (BizJournals)
The state of Missouri has reached an agreement with book publisher Penguin Group Inc. to settle allegations the company colluded with other major publishers and Apple Inc. (NASDAQ:AAPL) to manipulate prices in the e-book market. Missouri joins 32 other states and territories and those who brought a class action, in settling their antitrust lawsuits against Penguin. Consumers nationwide will receive $75 million in compensation through the agreement, which must be finalized by the U.S. District Court for the Southern District of New York. The agreement will allow e-book outlets greater freedom to reduce the prices of their e-book titles, Missouri Attorney General Chris Koster’s office said in a statement.
Apple to build U.S.-made Macs in Texas (BizJournals)
When Apple Inc. (NASDAQ:AAPL) CEO Tim Cook announced late last year that the tech company wanted to bring some manufacturing back to the United States, it raised the question of where? Now we know: Texas. Cook talked about location during his Senate committee appearance yesterday, according to All Things D. A Mac line will be built in Texas — though a more specific location was not disclosed — with components made in Illinois and Florida, using equipment made in Kentucky and Michigan. In December 2012, Cook said Apple Inc. (NASDAQ:AAPL) planned to spend $100 million this year to shift some manufacturing of Mac computers to the U.S.
Siri Is Asked About Apple’s Tax Avoidance, And She Gets Cagey (HuffingtonPost)
With U.S. Senators questioning Apple Inc. (NASDAQ:AAPL) CEO Tim Cook about how little the company ends up paying in taxes, we thought we would go straight to the expert to get some answers. Peter S. Goodman, executive business editor at HuffPost, interrogated Siri about her company’s business practices, and, unsurprisingly, she got a little agitated. During the interrogation, Siri continually pointed us to Apple Inc. (NASDAQ:AAPL)’s website. She claimed she “doesn’t know what that means” when asked if Tim Cook told the truth to Congress. Oh, please. You know exactly what that means, Siri.