It’s because it’s not really their tax bill. There are a lot of things that can raise or lower income tax expense without changing the tax they pay, which can lead to super high or super low rates year to year

Point to me where the chart says $19B is the tax they pay. Literally the only thing it says is “tax”. You’re the one who keeps saying it’s the tax they pay. Which is why I’m saying that you’re wrong, not the chart

Dude, why do you keep shifting your argument?

>19B (all tax paid) / $394B (total revenue) = 4.82%

Again, not true. The 19B isn’t the tax they pay. I’m not claiming there’s an error in the chart, I’m claiming that your analysis of it is incorrect. You’ve said several times that this $19B is the tax they pay, and that’s why I originally told you that was wrong

Again, having a 5% rate there doesn’t mean that their tax was 5% of their revenue though, that’s what I’m trying to say

This sankey diagram comes from their income statement. The tax data reported on an income statement is “income tax expense”, which is $19B for Apple, and what’s reported on this specific sankey diagram. It’s what you’ve been referring to, but your wrong that it’s the inflow/outflow of tax, because that’s not what the sankey diagram is showing in the tax amount reported

…income tax expense is the tax portion of the chart, it’s literally what you and the other guy were talking about this whole time

You just said that that specific portion of the sankey chart was measuring the inflow and outflow

That’s not what income tax expense is though. It doesn’t have anything to do with the inflow or outflow of tax

16% tax rate, not 5%

There’s probably quite a bit of R&D that’s capitalized, so it would be on the balance sheet instead of here

Their tax is on profit, which was $20 billion

Also, the $6 billion is their income tax expense, which isn’t the same thing as the income tax they actually pay

How so?

Bruh, eliminations are just intercompany transactions that are backed out so it’s not double counted

>isn’t low because employee comp and R&D

Their 10-K is public record, it’s absolutely due to employee comp and R&D

It depends on the reason why. Most of why Googles rate is low is due to employee compensation and R&D. Why are either of those bad things?

Most of it was exercising stock options, which are taxed at ordinary income rates

They pay tax on profit though

Effective rates for corps and individuals aren’t really comparable. At the end of the day, corporate tax returns aren’t public record, it’s impossible to know how much tax they actually pay

What do you mean? It was all income tax

Elon Musk

That’s…not true

Corporate tax is also referred to as “corporate income tax”, because it’s a tax on their income. On the income statement, this is labeled as income tax expense

Registering in Delaware doesn’t mean you don’t pay state tax, as your income gets apportioned to every state that you operate it. Registering in Delaware is for legal reasons, not tax reasons

And you also can’t really compare individual and corporate tax rates. A rate for a corporation is based on their income tax expense instead of the tax they actually pay

Start a business

It’s a 14% rate on their pre-tax income. Also, this isn’t even the income tax they actually pay, income tax expense is a different measurement

Their effective tax rate really has no relation to the income tax they pay. It’s possible they pay much more than that reflects

Crazy to think how their income tax expense is basically a similar amount to what a single individual paid last year

Stories about them paying no tax usually come from a misinterpretation of the data. Especially compared to other countries on this chart, the US companies would have a significant tax burden, especially since the US taxes global income