Sen. Rand Paul (R-KY) defended Apple and scolded his fellow lawmakers during a Senate hearing today about the tech company avoiding tens of billions in taxes (video below).
Sen. Paul accused the Senate of "bullying" Apple, which he called one of America's “success stories” (video below), while failing to mention that many of Apple's parts are actually manufactured overseas.
According to Mediaite.com, Sen. Paul was upset that a Senate investigation found that Apple “avoided billions in taxes in the United States and around the world through a web of subsidiaries."
According to the New York Times: "Congressional investigators found that some of Apple’s subsidiaries had no employees and were largely run by top officials from the company’s headquarters in Cupertino, Calif. But by officially locating them in places like Ireland, Apple was able to, in effect, make them stateless, exempt from taxes, record-keeping laws and the need for the subsidiaries to even file tax returns anywhere in the world."
Reuters reports: Apple's retail stores throughout Europe, has not paid any corporate income tax in the last five years... The Senate report said a subsidiary with a mailing address in Cork, Ireland's second-largest city, received $29.9 billion in dividends from lower-tiered offshore affiliates from 2009 to 2012, comprising 30 percent of Apple's global net profits."
“Frankly, I’m offended by the tone and tenor of this hearing,” Sen. Paul said. “I’m offended by a $4 trillion government bullying, berating, and badgering one of America’s greatest success stories.”
“If anyone should be on trial here, it should be Congress,” Sen. Paul added. “I frankly think the committee should apologize to Apple. I think Congress should be on trial here for creating a bizarre and byzantine tax code that runs into the tens of thousands of pages, for creating a tax code that simply doesn’t compete with the rest of the world.”
However, Sen. Paul did not cite which law Congress had broken when creating the tax code.
Sen. Paul also attacked his fellow senators on Twitter where he tweeted: "Apple has done more to enrich people's lives than politicians will ever do" and then added, "To the Apple executives here, I apologize for this theater of the absurd."
Sen. Paul did not explain why average Americans should have to pay taxes, but Apple does not (on most of its income).