US raises concern over American firms evading taxes

Amidst allegations that Apple is evading US taxes through overseas shell companies, the White House has said this raises the broader question of American firms shipping profits and jobs overseas, an issue often raised by President Barack Obama.
"The broader issue is one that is of concern to the President and one that he's focused on, because in terms of the policy matters that it raises, the report by Senators (Carl) Levin and (John) McCain raises a set of broader issues around companies that ship their profits and their jobs offshore," White House Press Secretary Jay Carney told reporters yesterday.

Carney was responding to questions after Apple CEO Tim Cook testified before a Congressional committee during which he denied allegations of tax evasion levelled against the company by an independent and bipartisan Senate panel report released by Levin and McCain on Monday.
"It is our view that Senators Levin and McCain have done an important job in raising awareness of this issue and putting forward ideas to cut back on the abuses. As you know, the President has long argued that the tax code today is tilted against companies that want to create jobs in America while it rewards companies for shipping jobs and profits overseas," he said.

"As a result, he has long championed a set of proposals to ensure that American companies cannot use offshore profit shifting to avoid paying taxes, including a proposal for a minimum tax on foreign earnings that would provide a comprehensive solution to this problem," Carney said.
"We look forward to working with Senators McCain and Levin, and anyone else who will work with us to reform our tax code in a way that makes sure that everyone is paying their fair share and that our tax code is designed to reward job creation opportunities in the United States instead of tax avoidance and profit-shifting opportunities to low-tax countries around the world," he said.

Carney said this has been a major priority of Obama, because he thinks it is inexplicable that the US tax code would actually be written in a way that rewards companies for taking jobs and profits offshore, and thereby penalises companies for doing what the country want them to do, which is create jobs and opportunity here in the United States.
Earlier in the day, the Apple CEO Tim Cook denied allegations of tax evasion.
"We pay all the taxes we owe, every single dollar. We not only comply with the laws, we comply with the spirits of the laws. We don't depend on tax gimmicks," he told a Senate Panel.