apportion based on relative sales, sales to customers in that state over total sales domestically. some states use a multifactor test. they may look to sales, property and payroll. do you independently negotiate between the states in terms of who gets to claim what percentage of your income? do you end up paying more — do you have more of your incull allocated to state income tax? in other words more than 100%? not over 100%, but it is approximately 100%. in our fact pattern, it’s not double taxed, which would@ be the case if more than 100% of the income apportioned. but that’s a similar type of problem you have trying to allocate income between different countries, isn’t it? if you have different states apportioned in different ways, yes. can you tell me a bit about the taxes you pay to foreign countries? are those sales taxes? property taxes? a combination of all of those? can you give me some sort of relative amount? well, there’s a combination. last year in fiscal ’12, the company paid a little over $900 million in international income taxes around the world. we’re projecting that number to be larger this year, significantly larger than it was a few years ago. in addition to that, offthe statistics available, but i would imagine similar to in the u.s., there are employer contributions for payroll tax action for employees outside of the united states, and there’s a considerable amount of v.a.t. and gst that gets remitted to various countries around the world. of your total worldwide employment, how much is based in the u.s. and how much is based overseas? about 50,000 of our 75,000 employees are here in the united states. so even though 60% of your sales are overseas, what percentage is that, almost two thirds? yes, that’s also influenced by our retail stories. of our approximately a little over 400 retail stores, about 260 of them are here, and that influences it.
Sen. Paul: Let’s Not Vilify American Companies
CNBC’s Eamon Javers reports the latest from Capitol Hill where Apple’s CEO Tim Cook is testifying on taxes. Senator Rand Paul (R-KY) thinks the committee is vilifying Apple.
Transcript:
we want to go down to the it testimony as it’s about to resume in washington. eamon? reporter: we’ve already had a couple of fireworks here this morning. tim cook has been testifying. early yerp before the hearing began, senator rand paul questioned having this hearing in the first place. got under the skin of chairman carl levin here. take a listen to this exchange. and — and maybe we don’t have the exchange. let me tell you what happened there. rand paul said he was offended by this hearing. he thought if anything congress ought to be apologizing it to apple instead of criticizing apple for doing what every company does, rand paul said, trying to lower its taxes. he said nobody’s out there trying to maximize their taxes. everyone is trying to lower their taxes. levin responded to that in classic senate fashion, not by naming paul but, wait a second, this hearing is entirely appropriate. john mccain chimed in in defense of levin himself. mccain saying that he was offended anyone would accuse levin of bullying — i think we do have that tape now ready to go. let’s take a listen to this exchange. apple has real operations with apple employees selling real products to real customers. we pay all the taxes we owe, every single dollar. we don’t stash money on some caribbeisland. reporter: and sometimes in television the wrong tape plays. that was not the exchange we were talking about with rand paul. in any case, some dramatic moments up here already on capitol hill. john mccain leaping to the fense of carl levin, the democrat who chairs the committee. a dispute between rand paul and john mccain over whether this hearing is legitimate anyway and so far, guys, i have to tell you, not a lot of heavy blows landed personally on cook. he’s been weathering the storm so far. we’ll watch and see how he does in the remainder ofhe testimony. again, eamon, it raises the corporate tax rate and that’s what rand paul was trying to refer to, right? reporter: yeah, that’s exactly the question here. rand paul saying, wait a second. congress set up this tax rate in the first place. why are we blaming apple of taking advantage of the perm
What to Make of Goldman’s Bullish Call
Muted growth could mean Goldman Sachs’s year-end price target of 1,750 in the S&P 500 might be right, Joe Terranova of Virtus Investment Partners says.
Transcript:
in florida with jamie dimon winning that vote. back to our top story, goldman’s bull market call. new numbers out today revealing just how strong the firm thinks the stock market is and will continue to be. goldman expecting the s&p 500 to hit 1750 by the end of this year, 1900 by the end of next year, and 2100 by the year 2015. josh brown? scott, it’s a fascinating rationale. goldman is saying typically multiples will expand in the year before to get gdp growth, and so they’re talking about 75% of the current expansion being due to the multiple growing and that continues. they’re also talking about this dividend floor that they think will continue to rise. right now it’s about 2% on the s&p. they think that will go higher and keep price with the price of the s&p and that is rather interesting, it’s a much better case than for them to say there’s multiple earnings growth. what do you make of this wildly bullish call? i think it’s an acknowledgement of the growth we saw in the first quarter. 12% was surprising from the street. it came from the sectors we like through discretionary and financials. you want to see the names like a microsoft, ibm, even apple, extend the dividend policy they put for already. i agree with josh. i don’t think it’s on earnings growth. it’vidend growth. it’s a way to give back to shareholders. if you watch the testimony with tim cook and the lawmakers in d.c. you begin to wonder if
Rally Red Flags?
Wall Street is chasing the rally, and CNBC’s Steve Liesman reports on why some have missed the boat; and Gina Martin Adams, Wells Fargo, discusses her bearish year-end target.
