One of the funniest--or perhaps one of the strangest--moments in the recent Senate panel that targeted Apple (News
- Alert) over its tax accounting principles came from none other than John McCain, who recently had some unkind words for Apple not related to its tax policies, but rather to its apps policies. Specifically, McCain wondered what was up with all the updates, and directed that question squarely at Tim Cook, Apple's CEO.
Senator McCain, who had run out of time and acknowledged same, lined up just one parting shot on Tim Cook, saying, "I'm out of time but what I really wanted to ask was why the hell I have to keep updating apps on my iPhone (News - Alert) all the time and why you don't fix that." Cook replied that Apple was out to "make them better all the time," and both men were reportedly smiling during the exchange.
Other senators, meanwhile, took at least a little time to praise Apple's technological prowess, with Carl Levin and Kelly Ayotte expressing admiration for the iPad--which both reportedly had on hand--and Claire McCaskill getting in on the action by saying "I love Apple!" Yet while the senators were all at least somewhat happy with Apple's skill in providing a technological platform, Apple's tax matters were a whole different story.
Apple's practice of storing cash in offshore bank accounts may be completely legal under the U.S. tax codes, but the senators still took exception to the fact that Apple was using the completely legal practice at all, saying that sheltering cash offshore was costing the United States billions of dollars in lost revenue. This led to Carl Levin referring to Apple's use of the practices as "the Holy Grail" of offshore tax avoidance, and that, should those loopholes be shut down, would mean billions of dollars returning to the United States government. Cook, for his part, responded that the practices in question were all completely legal according to current U.S. law, but that Cook would "like comprehensive tax reform to be passed this year."
Admittedly, it's odd to see the government take Apple to task for obeying current tax law, but given the state of the larger economy--especially as more small businesses shut down outright--governments are likely eager to find revenue wherever it can be had. Still, it would be easy enough to think that if the government has an issue with tax law, it should focus on changing the laws in question as opposed to interrogating those who use the law to reduce taxes paid.
Whether the issue is a lack of paid taxes, or apps that update too frequently, Apple is still a very big name, and as such draws fire from several quarters. With some companies like Artisan working on improved mobile experiences, however, it may be that a smoother mobile experience is just around the bend, and Senator McCain can enjoy his apps without a lot of updating getting in the way.
Edited by Alisen Downey