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Apple should repay Ireland 13bn euros, European Commission rules - BBC News

BBC News Original article ›
LyrArc Article Gist
The European Union Commission says Ireland must recover 13 billion euros in back taxes for giving tax preferences to Apple that are against EU rules. The EU Commission says Ireland allowed Apple to pay a corporate tax rate of 1% on its European profits in 2003, and .005% in 2014. The EU Commissioner says the use of Ireland as the place where Apple pays taxes on operations in Europe has no base in reality, as most profits are earned in other countries outside Ireland. Taxable profits of Apple "did not correspond to economic reality," according to Ms. Vestager, the EU Commissioner. 

In the current environment where political upheaval is unsettling the democratic process in the U.S., Britain, Spain, France and Italy, as well as in Brazil and other countries in the developing world- because of deep recessions, and efforts to cut the deficits with deep cuts in state spending including in education and healthcare, basic services- the moves by companies to reduce taxes to these absurdly low levels such as .005% when other companies in the EU are paying 12.5%, is becoming increasingly unpopular. As pointed out in this BBC News article this sounds like the way Carnegie, Rockefeller and Vanderbilt operated during the late 19th century, and were seen as operating in a manner that was above the law. Janet Yellen pointed out at a Boston Fed Conference on inequality in Oct 2014 that the bottom half of the distribution or 62 million households in the U.S. in 2013, had a net worth of about $10,000, One quarter of these households had a net worth of zero dollars. The working class and blue collar workers in the U.S. provide much of the support at Trump rallies. Younger college educated people support Sanders, because of the situation of the working and middle class in the U.S., and a similar situation exists in Europe. It is for the sake of the democratic process and delivering services in education, healthcare, and other basic areas to all, that companies small and large need to pay their fair share of taxes, regardless of size, influence, or technological advantages. Today this is is seen by most leaders who draw public support as the right way forward for the U.S., Latin America, Europe and Asian countries, including proper allocation of resources to best serve the needs of working people. For example the 13 billion euros is equal to all of Ireland's healthcare budget, and 66% of its social welfare budget. 

 


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Europeans Accuse Ireland of Giving Apple Illegal Tax Break

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Apple should repay Ireland 13bn euros, European Commission rules - BBC News

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Google's U.S. federal tax liability of 18%. GE's low tax rate.

10/28/2010

The US tax rate for corporations at 35%, but the $1.5 billion federal tax liability of Google comes to an effective 18% tax rate. GE's consolidated tax rate of 11.6% from 2005 to 2009. This is also true of other large American companies, raising questions of fairness at a time of budget cuts in education, Medicaid and Medicare. Many U.S. companies, such as Apple, also use offshore tax havens to protect profits from taxes.

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Apple’s Web of Tax Shelters Saved It Billions, Panel Finds

New York Times 05/20/2013

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Wall Street Journal 05/22/2013

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Wall Street Journal 05/22/2013

Ireland Defends Tax Laws to Critics at Home and Abroad

New York Times 05/21/2013

The Corrosive Effect of Apple’s Tax Avoidance

New York Times 05/23/2013

U.S. Federal Reserve report on the drop in incomes and net worth of American families between 2007-2010

01/02/2009

The Fed documents the impact of the financial crisis of 2008-2009 on American families. Half the middle class is dislocated financially by the crisis and minorites fare badly. Median incomes drop 8% and housing asset values drop an average of 42%. Median net worth down 39% taking it back to where it was in 1992. American families work down their debt, reducing credit card balances.

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Income Slides to 1996 Levels

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Lost Decade for Family Income

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More Men in Prime Working Ages Don't Have Jobs

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03/11/2009

Figures from the Center of Labor Market Studies of Northeastern University in Boston showing unemployment of 9% in the $40,000 to $50,000 annual household income group and going up to 31% at the lowest income group. Higher inequality as differences in education between lower income and higher income Americans grows. The problem of the long term unemployed is a serious one.

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Income Slides to 1996 Levels

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Young and Isolated

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OECD report cites rising income inequality - The Washington Post

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U.S. Schools Chief Arne Duncan Labors to Straddle Political Divide

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The Great Stagnation in American Education

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Globalization and the white working class in Europe and the U.S. in 2016- job losses, regional disparities, growing inequality with declining incomes

07/13/2016

Sanders, Trump, in the U.S., Marie Le Pen in France, and Brexiters in England appeal to white working class which has not benefitted from trade agreements and globalization. Globalization has produced very different outcomes for different industries and regions, benefitting some and hurting others. Leaders of existing political parties have failed to grasp and respond to these changes leaving room for others to take up the cause of the white working class. TPP trade agreement for instance benefits the information technology industry and hurts the automobile industry in the U.S., producing unequal outcomes that come after years of job losses and hollowing out in some industries- making it unpopular, and raising questions about the wisdom of such policies when most of the gains in free trade are already behind us according to Krugman and other experts.

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Brexit: The Era of the Angry Voter Is Upon Us - SPIEGEL ONLINE

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The presidential campaign and the US middle class | US elections 2016 | DW.COM | 13.03.2016

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Hillary Clinton Asks Not for Trust, but for Faith in Her Competence

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Both parties face a blue-collar imperative - The Washington Post

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Here’s what a conservative policy agenda should look like in the Trump era - The Washington Post

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What Republicans Should Say

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How Both Parties Lost the White Middle Class

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Social and economic mobility for the middle class emerging as the central issue in the 2016 U.S. presidential campaign

09/13/2015

Bernie Sanders and Hillary Clinton in the Demcratic Party, and Jeb Bush in the Republican Party, are making social and economic mobility for the middle and working class a central issue in the 2016 presidential campaign. In Britain Corbyn's election to the leadership of the Labor Party with all other candidates doing poorly, is also creating a focus on economic issues and better access to education and jobs.

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Sanders, Corbyn and the coming debate inside the Democratic Party - The Washington Post

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Incomes and Poverty, 2014

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Not There Yet on Equal Opportunity

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America’s white working class is a dying breed - The Washington Post

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The missing working class - The Washington Post

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Paying for upward mobility and infrastructure in the U.S.- the number 34 and why it matters

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Infrastructure building would boost growth and jobs for the working class, providing access to public universities by removing high tution barriers would enable upward mobility for a once again growing middle class.

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BBC News 08/30/2016

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The Guardian 08/30/2016

The Economic Expansion Is Helping the Middle Class, Finally

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Struggling to Serve at the Nation’s Richest University

The New York Times 10/24/2016

Reviving the use of the term "working class" in America as opposed to middle class- why this is important

11/12/2015

Cherlin, a professor at John Hopkins University, who has written about the decline of the working class family, once portrayed in television shows such as "All in the Family," says the term was seen as derogatory and avoided in recent times. Archie Bunker in that show was seen as bigoted and behind the times. He points out that Obama in his speeches has used middle class frequently but rarely used the term "working class." Yet he points out the Americans with a diploma at most but no bachelors degree, comprise 54 percent of the American people, and are quite different in lifestyle and educational opportunities than the middle class better educated Americans. They also face a different set of problems and obstacles to upward mobility and social mobility. It is right to revive the use of the term "working class" says Cherlin, so that one can wrap ones hands around the problem facing so many Americans. A combination of forces have trampled the future prospects of these Americans, many arising out of forces beyond the control of policy such as automation and global manufacturing, and some such as the problems created by the 2008 financial crisis which were the result of bad decisions by business have only worsened the situation.

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The missing working class - The Washington Post

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It’s the American Dream, Stupid

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Voices From Donald Trump’s Rallies, Uncensored

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The U.S. Federal Reserve and the populist movements of 2016 of Trump and Sanders

08/26/2016

By missing the signals of the bubble in financial markets and letting the mortgage crisis develop upto the point that the overleveraged banks had to be rescued and the global economy went into a deep recession, the U.S. Fed created the conditions for the populist movements of 2016. Very low rates designed to help the economy recover hurt savers, further depressing the financial assets of the middle and working class. The lack of access to public colleges hurt upward mobility, and the high cost of tution led to parents assuming large amounts of student debt further depressing their condition. The assets of middle and working class people revealed at a Boston Fed sponsored Inequality conference in Oct. 2014 were shocking- the average net worth of the lower half of the distribution in the U.S., or 62 million households was an average of $11,000, with one quarter at zero net worth, according to Janet Yellen, the chairman of the Fed, America's central bank.

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BBC News 08/30/2016

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The Guardian 08/30/2016

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The New York Times 09/13/2016

Fed, With 3 Officials in Dissent, Stands Firm on Interest Rates While Noting Improving Economy

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Poverty among white Americans in 2010-2015

03/11/2009

A previous generation could count on good jobs in manufacturing with only a high school education. The last two decades of globalization have hit manufacturing jobs and wages in the U.S. hard and the impact is greatest on people without a college education. Other problems aggravating income and causing poverty is the increase of dropout rates from the labor force of young white American men, the effects of drug use and the lack of stable marraiges. This creates an underclass of whites in America, similiar to the underclass among minorities.

Grouped Articles

Racial Wealth Gap Widened During Recession

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Income Slides to 1996 Levels

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Young and Isolated

New York Times 06/22/2013

OECD report cites rising income inequality - The Washington Post

Washington Post 12/06/2011

U.S. Schools Chief Arne Duncan Labors to Straddle Political Divide

Wall Street Journal 07/22/2013

Hungry in America

New York Times 02/10/2010

Poverty and homeless children in New York City- 2013-2016

12/08/2013

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Invisible Child: Dasani’s Homeless Life

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Amid Repressed Hopes, Reasons to Dream

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Bloomberg's Real Antipoverty Record

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Immigration Remakes and Sustains New York, Report Finds

New York Times 12/18/2013

State of the Union: Obama Seeks to Narrow Income Gap

Wall Street Journal 01/29/2014

13 Who Defeated Adversity Earn New York Times College Scholarships

New York Times 03/11/2015

U.S. income and poverty in 2014

09/17/2015

The median income in the U.S. was 6.5% below the level in 2007, according to the Census Bureau. It declined in 2011 and 2012 and was stagnant in 2014. About 14.8% of the population, or 46.7 million people, are below the poverty level. About 34.7% of the people in the U.S. have experienced income levels below the poverty level for 2 months or more between 2009-2012

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Incomes and Poverty, 2014

Wall Street Journal 09/17/2015

A Better Way to Measure Poverty

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The fatal trend among white working class Americans - The Washington Post

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A Republican Cure for Liberal Failures on Poverty

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Apple should repay Ireland 13bn euros, European Commission rules - BBC News

BBC News 08/30/2016

Deep Poverty in the U.S. increasing from about 30% of people in poverty in 1975 to 44% in 2013

09/17/2010

Deep poverty is defined as income 50% below the official poverty line. Since the beginning of the recession deep poverty in the U.S. has increased from 42% to 44%. The striking change in America is the accentuation of the income differences with the rise in deep poverty. This is coupled with similiar changes in income differences for the middle class Americans with income concentrated at the higher levels.

Grouped Articles

U.S. Poverty Rate Stabilizes

Wall Street Journal 10/11/2013

Patchwork of Local Wage Laws Fuels Debate Over Raising Federal Minimum

Wall Street Journal 12/01/2013

Bloomberg's Real Antipoverty Record

Wall Street Journal 12/18/2013

Lost Decade for Family Income

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Upward Mobility Has Not Declined, Study Says

New York Times 01/23/2014

New Data Muddle Debate on Economic Mobility

Wall Street Journal 01/24/2014


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