
Apple seems to be the target of government and media criticism, once again, for operating the same way every other company in the industry operates. Why does Apple get held to a higher standard in the headlines and in the Senate than its competition? And isn’t there anyone willing to suggest that perhaps this treatment is not entirely fair? Of course there is.
U.S. Senate vs. Apple
On Monday, the New York Times published a report detailing Apple’s off-shore tax practices, just in time to stir up public opinion for scheduled testimony from Apple to the U.S. Senate Permanent Subcommittee on Investigations on Tuesday. The article detailed the amount of money Apple allegedly avoided paying in taxes, and included several flamboyant comments from Senators and law professors who had plenty of snarky things to say about Cupertino. Also included in the article was a brief mention that Apple’s tax practices are basically the exact same things being done by others in the tech industry, including Google, Amazon, and Yahoo, but the focus of the piece was to paint Apple as a legal-yet-problematic tax avoider.
In preparation for the hearing, Apple published a pair of documents featuring the opening statements of Chief Executive Officer Tim Cook (PDF) and Chief Financial Officer Peter Oppenheimer (PDF). The statements focus on Apple’s significant contributions to the US economy and defend overseas business practices. Oppenheimer’s statement even details how close Apple came to disappearing forever in the late ’90s by reminding the committee “I can tell you firsthand, we were facing the very real possibility of a world without Apple.”
The Senators present at the hearing, however, picked up right where the NYT article left off, and blistered Apple with what the Washington Post called “righteous indignation.” All of the Senators, that is, except for one: Sen. Rand Paul (R-Ky).

Don’t make me filibuster up in here.
“Frankly, I’m offended by the tone and tenor of this hearing,” Sen. Paul stated. “I’m offended by a $4 trillion government bullying, berating and badgering one of America’s greatest success stories.”
Sen. Paul went on to point the finger at his colleagues, stating that Apple was operating as best it could inside of a severely flawed tax system that Congress has done nothing to fix. ”If anyone should be on trial here, it should be Congress,” Sen. Paul continued. “I frankly think the committee should apologize to Apple. The Congress should be on trial here for creating a Byzantine and bizarre tax code.”
In a long prepared testimony, though not as long as others he has provided, Sen. Paul made clear that Apple was not being accused of violating any laws whatsoever, and implied that the entire hearing, much like the NYT piece that preceded it, was being done for hype and publicity.
“This committee will admit: Apple has not broken any laws,” Paul said. “Yet they are forced into a show trial at the whims of politicians, when in fact; Congress should be on trial for chasing the profits of great American companies overseas.”
Sen. Paul went on to pose the rhetorical question, “You haul before this committee one of America’s greatest success stories, and you want applause?”
Clearly Apple could not have originated or prospered without the talent and infrastructure that exists in the U.S., and the shell-game accounting methods that Cupertino uses to shelter taxes feel somewhat ungrateful. But singling out Apple as a problem while glossing over the fact that this is what many U.S. tech companies do, and ignoring the fact that the bigger problem lies in the tax code itself, seems disingenuous and self-serving.
In this situation, if anyone deserves applause for calling out the hypocrisy and speaking the truth, it is Sen. Rand Paul.
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