In my MBA class last night, we talked about corporate tax rates and in particular why some companies don't seem to be paying taxes anywhere close to the listed rate. Case in point, in the most recent year, Apple paid an average tax rate of about 25%, while it is clearly in the 35% bracket. Of course what is happening is that Apple (and many other firms) take advantage of off shore tax shelters. In Apple's case, this is Ireland.
One of my students asked the question - "how is Apple going to get its money back to the US?" and in today's news we have a possible answer - as Tim Cook (Apple CEO) says he'll repatriate these off shore dollars if the US Government taxes them at a single digit rate.