Ahead of Tim Cook's congressional testimony tomorrow about Apple's (NASDAQ: AAPL ) tax policies, the company has released a 17-page statement (link opens PDF) outlining its tax policy.
In the statement outlining the testimony it will give, the company points out that it employs tens of thousands of Americans, makes products that benefit tens of millions of Americans, and pays billions of dollars in corporate income and payroll taxes to the Treasury each year.
The company also "welcomes an objective examination" of the U.S. corporate tax system, which Apple believes "has not kept pace with" the rapidly evolving technologies and the economy. Apple says it encourages a comprehensive tax reform to promote growth and allow American multinationals to remain competitive.
Apple says it has helped create or support approximately 600,000 domestic jobs, of which 50,000 are Apple employees and 550,000 are indirectly related to other fields like manufacturing and logistics, among others. The company believes 290,000 jobs have been created from the "App Economy" from its App Store, and Apple has paid out a cumulative total of $9 billion to developers.
Apple also notes that it may be the "largest corporate income tax payer" in the country, paying almost $6 billion in fiscal 2012. It estimates that this represents 2.5% of all corporate income tax collected by the Treasury last year. Apple expects this figure to rise to $7 billion in fiscal 2013.
In Apple's view, a comprehensive reform would include a tax system that is revenue neutral, eliminates all corporate tax expenditures, lowers income tax rates, and implements a reasonable tax on foreign earnings that allows capital to move freely. Apple argues that the current tax system was created under an "industrial era" that undermines U.S. competitiveness in a "digital economy."
Cook is to testify before the Senate's Permanent Subcommittee on Investigations in connection with its inquiry into the tax practices of multinational companies.
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Getty Images President Obama's new budget proposal includes changing a couple of key inflation calculations to something called a "chained CPI." The shift is getting a lot of attention right now because of the expected effect it will have on individuals. There are two key places where a chained CPI -- short for consumer price index -- will have a direct impact on your pocketbook: income taxes and Social Security benefits. All else being equal, over time, your income taxes will be higher and your Social Security benefits will be lower than they are under current inflation calculations. The key difference between the chained CPI and the traditional consumer price index is how the index measures consumer behavior. The chained CPI assumes that as prices rise on one product, some portion of consumers will be willing to substitute less expensive alternatives for what they used to buy. That changes the product weightings used in the inflation calculation. By incorporating information from those new product weightings, the chained CPI typically produces a lower inflation level. Here's how it works. The Impact on Income Taxes If you pay income taxes, your tax bracket is determined by the amount of taxable income you make. The cutoffs for each bracket generally rise over time with inflation. The two charts below show the IRS "Schedule X" brackets for single taxpayers; the first is for 2012, and the second is what's currently expected for 2013: 
Chart for 2012 from the U.S. Internal Revenue Service 
Chart for 2013 from the U.S. Internal Revenue Service While the 39.6 percent tax rate is new for 2013, note that the other brackets have higher cutoffs for 2013 than they did for 2012. That's thanks to the inflation adjustment made to the tax brackets. If the law is changed so that the chained CPI is used, the tops of those brackets are expected to rise more slowly, exposing more of your income to higher tax rates than under current law. The Effect on Social Security Benefits Similarly, Social Security benefits are increased based on the inflation rate. By tying the payment increases to the chained CPI -- an inflation rate that grows more slowly than the current measure -- those benefit payments will grow less quickly as well. As a result, over time your Social Security checks will be smaller than they would have been under the old inflation calculation. The annual changes aren't too extreme -- they're estimated to be somewhere in the vicinity of 0.1 percent to 0.3 percent per year, depending on what the future brings. But over time, it adds up to real money for those who pay income taxes or receive Social Security checks, with official estimates in the neighborhood of $340 billion in higher taxes and lower costs over the next 10 years. Is It Better? Is It Fair? To some extent, the chained CPI is more effective at measuring the behavior changes that we all make whenever possible to save some cash. For example, if you've switched to generic medications whenever they're available, you're doing exactly what the chained CPI expects you to do. Likewise, if you started carpooling or taking the bus in response to higher gas prices, you're changing your behavior based on higher prices, just like the chained CPI projects. On the flip side, of course, not all costs are easily switchable, especially for the seniors who rely on Social Security. For instance, health care costs have been rising faster than the overall inflation rate for decades, and older folks generally have higher health care costs than younger ones do. As a result, the change to a chained CPI will very likely make the gap between income growth and health care spending growth even more painful for seniors on Social Security. The Big Picture Still, if slowing the rate of benefit increases puts off the day of reckoning for when the Social Security Trust Fund runs out of cash and slashes benefits by around 25 percent, it may be worth it. That date is currently estimated to be a mere 20 years away -- well within the expected life span of most current workers and even some early retirees. To make it worse, if the CBO's recent release on Social Security is any indication, the next Social Security Trustees' Report may even pull that date even closer. Given a choice between a slower rate of growth or a hard slash of 25 percent at some point in the not-too-distant future, neither option seems ideal. But still, a slower rate of growth is a lot less painful than waking up one day to find your sole source of income has shrunk by a quarter of its former value. 
Kevork Djansezian/Bloomberg via Getty Images WASHINGTON -- While the appearance of the deadly Ebola virus in Texas is worrying the nation, it has yet to lead Americans to take a more cautious view over how to spend their money, data suggested Friday. The Thomson Reuters/University of Michigan index of consumer sentiment unexpectedly rose in early October to its highest level since July 2007. Separate data showed groundbreaking for new homes rose more than expected last month, and taken together the reports pointed to solid U.S. economic growth. "The underlying strength of the U.S. economy remains intact," said David Berson, an economist at Nationwide Mutual Insurance in Columbus, Ohio. "If it were not for Ebola and geopolitical concerns, these [sentiment] numbers would be higher." The data for the sentiment survey was collected Sept. 25 to Oct. 15, a period in which Americans have been barraged by news of Ebola's spread in West Africa, where it has killed thousands, and its appearance in the United States. U.S. officials have confirmed three Ebola cases, all in Dallas, since Sept. 30 -- a Liberian man who later died of the disease and two nurses who had cared for him and are now being treated. Investors have been concerned that Ebola, if not contained in the United States, could scare consumers and lead them to cut back on spending, though there is little sign of that so far. The consumer sentiment survey period also overlapped with the global stock market sell-off earlier this week. Economists polled by Reuters had expected the sentiment index to fall, but instead it ticked two tenths of a point higher to 86.4. Consumers were more upbeat about their personal finances and the national economy. Other measures of consumer confidence have also failed to show much alarm. Gallup's daily poll of economic sentiment has been stable in recent weeks. At least when it comes to spending decisions, consumers remain focused on a strengthening economy. "Despite rising media coverage, Ebola seems to have had little discernible effect on consumer sentiment to date," Goldman Sachs analyst Kris Dawsey said. The U.S. unemployment rate fell to 5.9 percent last month, a six-year low. Investors think the stronger job market will lead the Federal Reserve to raise interest rates next year after holding them near zero since 2008, though worries about the global economy and chronically low inflation have recently led them to bet the hike would be delayed until late in the year. Housing Recovery Intact A stronger job market helped the housing market recovery to advance last month, with groundbreaking at building sites rising more than expected. Housing starts rose 6.3 percent to an annual 1.02 million-unit pace, the Commerce Department said, the latest sign the sector was continuing to claw back after the implosion that touched off the 2007-2009 financial crisis and recession. Newly issued permits also rose. "If you look at the trend, you are still seeing an upward trajectory," said Michelle Meyers, an economist at Bank of America Merrill Lynch (BAC) in New York. U.S. stock prices jumped following a batch of solid corporate earnings reports, including profits by General Electric (GE) that topped analyst expectations. Share prices had fallen sharply earlier in the week, and the bounceback sucked money away from U.S. government debt, pushing yields higher for a second straight day. -
) announced that it will acquire the assets of Navarro Discount Pharmacy. 
NEW YORK (CNNMoney) For a summer Friday, markets are feeling a bit feisty. From Iraq to Priceline, there's much for investors to weigh. 
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Alamy Tax season is a time of stress for many, but it can be a joyful time for the roughly 75 percent of Americans who receive income tax refunds. While the refund really means you're getting back money you loaned to the government at no interest, in practical terms it often means an unexpected infusion of cash into your wallet or bank account. Last year's average income tax refund was $2,755, according to the Internal Revenue Service. That's a nice chunk of change. It's a great problem to have: What do you do with your windfall? The best choice for one person may not be the best choice for another. But experts agree on one thing: If you have debt, apply your refund to paying it off, whether it's credit card debt, student loan debt or other consumer debt. "People should still be focusing first on paying down debt," says Meisa Bonelli, a Wall Street finance and tax professional whose Millennial Tax company advises entrepreneurs on business and tax strategy. Debt, particularly student loan debt, should be a primary target because it limits financial options, preventing people from doing what they want with their money, whether it's buying a house, buying a car or taking a vacation. "Get that debt gone," she says. "It holds you back from everything else you want to do in life." Eric Rosenberg, a financial analyst who writes the blog Narrow Bridge Finance, agrees. "The No. 1 thing anyone should do with a tax refund is pay down debt," he says. After he left graduate school with $40,000 in student loan debt, he focused on aggressively paying it off. Using all his tax refunds and bonuses, he made the final payment just two years and six days after his graduation. With his student loan debt cleared away, he began saving his tax refunds, with the goal of buying a home. He didn't apply any of his refund money to splurges -- instead, he saved for fun and vacation with his regular income. The refunds were earmarked for bigger things. "I treated it like it was extra money that I didn't need to live on," Rosenberg says. "I always encourage people to think long term, not short term." Others believe that giving yourself license to splurge with part of your refund helps you save the rest. Stephanie Halligan, a financial consultant and blogger, signs a contract with herself before she does her taxes, allocating 50 percent of her refund to student loans and 25 percent to long-term savings. She can spend the remaining 25 percent on whatever she wants. "It's easy to react on impulse and emotion when your refund hits, so prepare now for what you'll do with that moolah later," she advises on her personal finance website, The Empowered Dollar. If you're getting a big refund -- a check in the ballpark of $1,000 or more for taxpayers who don't have a side business -- consider adjusting your withholding so that you'll have that money available to you during the year. But those who don't have substantial savings want to avoid a scenario in which they owe four figures to the IRS at tax time. "I think people should withhold the maximum they can withhold," Bonelli says. Rosenberg concurs. As his businesses, running Narrow Bridge Finance and building websites, have grown, his refunds have shrunk. Last year he had to pay the IRS. Here are the seven smartest things you can do with your refund: Pay down debt. If you have any consumer debt -- student loans, credit card balances or installment loans -- pay those off before using your refund for any other purpose. Car payments and home mortgages aren't in this category, but you can consider paying extra principal. Add to your savings. "You can never save enough," Bonelli says. You can use the money to build up your emergency fund, your kids' college funds or put it toward a specific goal, such as buying a house or a car or financing a big vacation. Add to your retirement accounts. If you put $2,500 from this year's tax refund into an IRA, it would grow to $8,500 in 25 years, even at a modest 5 percent rate of return, TurboTax calculates. If you saved $2,500 every year for 25 years, you'd end up with more than $130,000 at that same 5 percent rate of return. Invest in yourself. This could mean taking a class in investing, studying something that interests you or even taking a big trip. "Do something that enriches yourself or adds value to your life," Bonelli says. She is planning to take a class in art therapy this year using money from her refund. Improve your home. Consider putting your refund to good use by adding insulation, replacing old windows and doors or other improvements that would save energy, and therefore money. Or perhaps it's time to remodel your bathroom or kitchen. You're adding value to your home at the same time you're improving your living experience. Apply your refund toward next year's taxes. This is common among self-employed taxpayers, who are required to pay quarterly taxes since they don't have taxes withheld. By applying any overpayment toward upcoming tax payments, you can free up other cash.
Getty Images/Blend Images RM A major in theater often sits atop lists of the most useless college degrees, but by studying theater as an undergrad, I actually think I learned how to bootstrap my business. (I also went to a state college, so it was an affordable theater degree. Shout out to Minnesota State University - Mankato!) Here's a list of the valuable skills I acquired there that I've taken to heart over the last 10 years, and how they affect my business today. 1. Show Up In theater, if you don't audition, you won't get cast. You have to put yourself out there. Nowadays, I email people I don't know. I didn't know that this was weird. I've always reached out to people whose work I admire. I email people every week, and I don't expect anything in return. Sometimes I get an email back; sometimes I don't. But that's OK, because I just wanted to let that person know how his or her work has affected me. In theater, you audition for show after show after show, and you rarely get cast -- but if you don't put yourself out there, you'll never get cast. People ask how I've managed to get so much press in the past year; the answer simple: I'm not afraid to put myself out there. 2. Connect With People Immediately Theater always attracts the most interesting characters, and you learn to accept people for their uniqueness. You also learn how to get along with people who drive you nuts. More importantly, theater taught me how to connect with people instantly. I love finding out what others are interested in and connecting them with others who share their interests. I learned (just a few years ago) that this is called "networking." I thought everyone did this!