Apple's Cook to propose tax changes at congressional hearing

Apple Inc CEO Tim Cook will propose tax changes that would encourage firms to bring home more of their offshore funds when he faces congressional queries next Tuesday over his company’s overseas cash holdings and tax bills, the Washington Post reported.

Cook’s proposals would aim to put more companies’ offshore money to use creating jobs and conducting research and development in the United States, he said in an interview with the Post.

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Cook also told the Post that the 35 percent tax on cash brought back to the United States is a “very high number.”

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“We are not proposing that it be zero. I know many of our peers believe that. But I don’t view that. But I think it has to be reasonable,” he said.

Apple in a statement to Reuters acknowledged that Cook would be appearing before the congressional subcommittee but gave no information on the reported proposals.

Apple paid $6 billion in federal corporate income tax in fiscal 2012, the company said.

Next Tuesday’s hearing is centered on possible changes to the tax code to ensure that more cash-rich companies bring their money back the United States.

Apple’s Cook joins the heads of technology titans Hewlett-Packard Co and Microsoft Corp who have also been questioned in U.S. Senate subcommittee hearings on companies keeping cash overseas to lower their tax payments.

Reuters