Economic Roots of Apple

Jun 10, 2013 by

Economic Roots of Apple

My take on the Apple hearing:

The hearing by the Senate Permanent Subcommittee on Investigations on Tuesday focused on Apple‘s shifting of offshore profits. Apple’s tax planning stems from an almost metaphysical issue: What is the value of an iPhone?

What precisely is the value of Apple’s products? Where is that value created? Why do we fritter away so much time on Apple’s devices, and why are we willing to pay a premium for the privilege?

In theory, our tax system tries to trace the value of a product to its economic roots. It is as if each cog in the supply chain, even within the same firm, were a separate economic actor.

via Finding the Economic Roots of Apple’s Taxable Product –