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Apple Tax Strategy: Who's at Fault?

The Apple tax strategy is similar to many other major U.S. companies: shift billions of dollars to low-tax international jurisdictions to avoid paying taxes on that income.

But now Congress is accusing Apple of creating "a highly developed tax avoidance system" that cost the United States billions of dollars, economic growth and jobs. A Senate investigation found that Apple avoided paying taxes on $74 billion in overseas profits over four years.

Apple CEO Tim Cook will face Congress today to defend the Apple tax strategy, which Sen. John McCain, R-AZ, called "unpatriotic."

That's why Money Morning Chief Investment Strategist Keith Fitz-Gerald joined FOX Business' "Varney & Co." Tuesday morning to talk about the Apple tax strategy.

He explained how this tax loophole is part of the "law of unintended consequences." He also outlined what this means for investors – not just Apple investors, but anyone with money in the markets.

Check out Fitz-Gerald's analysis in the following interview:

Want to know more about this Apple tax strategy? Read How These Companies Get Away with Paying Peanuts in Corporate Taxes

Join the conversation. Click here to jump to comments…

  1. Skipper | May 22, 2013

    I do like Fitz-Gerald's comments on the video. Tim Cook should bring a mirror; how can it be 'unpatriotic' to minimize the tax liability of a corporation or individual?

    The only fear I have now, is this will be cannon fodder to further eliminate another way for corporations and individuals to minimize their taxes.

  2. Paul Livingston | May 22, 2013

    Do you want a solution? Do you want to end direct taxation on jobs and income, eliminate the IRS, repeal the 16th Amendment and greatly reduce the taxing power of politicians, lobbyists and special interest? Do you want to regain you lost economic freedoms? Do you want a jobs and stimulus program that works? Do you want Apple to bring home their money?

    The flat tax does not answer any of these questions.

    The solution to all these questions is the FairTax bill, HR25, now supported by 73 members of Congress. Learn more a and speak out for the FairTax.

  3. H. Craig Bradley | May 23, 2013


    How many other multi-nationals are doing exactly what Apple is doing to avoid paying U.S. Corporate income taxes on their overseas earnings? How about all the companies in the S&P 500 Index for starters. Why was Apple singled-out instead of say Exxon? I smell a rat. Al Gore is still on the Apple Board of Directors. Exactly what is this fat pig doing for Apple these days? Zippo. ( Big Al did not invent the internet either).

  4. H. Craig Bradley | May 23, 2013


    Keith, you might just reevaluate the colloquial use of a "New York Minute". Its out-of-date. For one thing, nothing gets done in just one minute anymore in NYC. A big reason for this has to do with NYC having a population of 8.3 million in 2012. ( Its 42% of New York State's total population). You have to get in line and wait everywhere you go. Just about everything in New York City takes alot longer than it did back in the 1970's or 1980's. This is a by-product of being overpopulated. Its not much different on the Left Coast in overpopulated California either. Too many people (TMP).

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