ireland. until 2012, the payroll for these employees was run through another apple subsidiary, aoe. two are nott these tax resident in ireland does not reduce our u.s. taxes at all. afi profits held by aoi and have been taxed by local governments for the money is earned. the investment income on their cash holdings is taxed by the u.s. government at the corporate tax rate of 35%. apple could certainly choose to manage foreign profits in numerous foreign subsidiaries without moving the cash, but that would have absolutely no effect on the taxes we pay in the u.s.. eliminated the central cash management function would be inefficient. managing larger pools of cash centrally, rather than many places around the world, reduces complexity, better protect the assets and helps us earn high returns. in theapple is fortunate position of having more cash from international operations then we need to run our company and pursue strategic opportunities. some observers question apple's decision to fund part of its capital return to shareholders by issuing $70 billion in debt rather than repatriating

apple has negotiated a tax rate in ireland of less than 2%. apple used loopholes to defer paying taxes on $44 billion taxable offshore income. asi paid .05% in global taxes in 2011. $10 million in taxes on $22 billion in earnings. asi from 2009 to 2012 country be today little more than half of the cost-sharing payments to apple, inc. but pocketed twice the earnings from apple, inc.. $74 billion compared to $39 billion. apple operations international received $30 billion in dividends from 2009 to 2012 and paid zero taxes. $102 billion of apples $145 billion in cash on hand is overseas. thank you mr. chairman. >> thank you very much senator mccain and we have senator johnson bird opening comment. we welcome you. >> frankly i'm offended by the tone and tenor of this hearing. i'm offended by a $4 trillion government bullying, parading and badgering one of america's great success stories. tell me one one of these politis have here who doesn't minimize their taxes. tell me a chief financial officer you would hire if he didn't try to minimize your tax

apple does the profit shifting by transferring some of its intellectual property to subsidiaries in ireland. in this case to the irish subsidiaries the right to sell apple products anywhere in the world other than north and south america. apple retained those rights. 95% of apple's research and development takes place in the united states. the secret to apple's business success isn't in the aluminum and steel and glass of an iphone, it's the genius, the genius is the ideas that bring those elements together in an elegant package. that intangible genius is intellectual property, it is nurtured and developed here in the united states. and yet it ends up that most of the profits are shifted to a tax haven, ireland. now apple will say they don't shift profits overseas. but that's a distinction without a difference. but they shift the intellectual property rights overseas. it's like saying that you haven't shifted the golden eggs offshore after you moved the golden goose offshore. the profits generated from this transfer of intellectual property, end up not in the united states where the intelle

ireland. the payroll for these employees was run through another apple subsidiary, aoe. hey are not taxed resident in ireland does not reduce our u.s. taxes at all. been taxed held have by foreign governments according to the local laws where it the money is earned. .he money is taxed at 35% this can choose to manage without moving the cash. that would have no effect on the taxes we pay in the u.s. cashnating essential management function would be inefficient. us earn higher returns through the economy of scale. apple is in the position of having more cash then we need to run our companies and pursuit strategic opportunities. some observers have questioned outpulls dishes in by issuing $70 million in debt rather than repatriating foreign repatriating-- $17 billion in debt. if apple had used foreign earnings, the funds would have been diminished by the high %.rporate tax rate of 35 the cost of issuing debt was less than 2%. we would be happy to answer your questions. >> thank you very much. mr. bullock? >> good morning. our statement has been concluded. .> we thank apple m

they're saying 61% of apple's sales comes from overseas, and the operations in ireland are not phantomperations as has been characterized by senator carl levin, their actually operations that employ, let's get to it, 4,000 workers. they sell apple products into europe, the middle east, africa, asia and the pacific. they do do manufacturing, they do customer service supply chain and finance. and you pointed out there is no evidence of anything illegal. the problem is for these units is that their tax rate is really low in ireland. ireland, they only pay like 1%, 2% to the government of ireland. but apple's tim cook really got heated in testimony today. he's saying there's no gimmicks at all. here's what tim cook told the senate. >> we pay all the taxes we owe every single dollar. we not only comply with the laws, but we comply with the spirit of the laws. we don't depend on tax gimmicks. >> reporter: he's also saying that, you know, apple does pay u.s. federal taxes on investment income from those units in ireland, that it pays local u.s. taxes and is overseas taxes, and it pays $6 bill

which is the apple operations enter national it's only owned by apple but it was incorporated in ireland now ireland has their tax laws are if a company is not managed and controlled in a higher line than is not considered a tax resident how does one have to pay taxes but here is where the loophole comes in and the us if a company is based a company's tax is based on where it's incorporated now where it's controlled so why is man is it controlled in the united states but it was incorporated in ireland so as it goes companies that has no physical presence or of. its finances are handled in nevada which is a state with no income tax by braeburn capital and its bank account is located in new york all right so we have nevada new york ireland reminds us of the. crisis in two thousand and eight where you had these luxembourg based icelandic bankers making swiss franc denominated loans to your informers of course that worked out

this is the foreign-earned income at apple is sheltering in ireland host. host: apple has a group of companies holding on to the money that is made from the products over in europe and asia. at what point could that money be taxed by the nine states? guest: the u.s. has a worldwide tax system. that means we are going to tax apple and on the income it earned in every country. every ally country works on a territorial system -- every other company works on a territorial system. this was an investigatory committee. because we are the only country that has that tax system, that gives the pretext for the committee to have the hearing because they want to create the perception that apple is somehow gained u.s. taxes one that is the case. there are people in the senate who do not want to allow to defer their foreign income. yes, you owe taxes on it, but not until you bring that money back to the u.s. host: curtis dubay is a senior tax analyst at the heritage foundation. our phone lines are open if you have questions about this hearing with apple's cdo. ceo. if you

apple says, mr. cook says they employ 4,000 people in ireland. they, apple, employ 4,000 people in ireland. i'll read you this joplin and they distribute dividends that aren't taxable under u.s. law joplin but will is a legitimate operation. 4,000 people is 4,000 people joplin. >> those aren't all in the tax department, right? >> the 4,000? we don't know joplin now we don't know those guys. >> ge has about 120 joplin so they can vice president 4,000 joplin the scandal here is that we have an amazingly complex tax system at a high tax rate here that incent sooizs these companies to go through extraordinary measures. the hearing should be about is how can we have a tax system which is simpler which is less horner honorous and bring capital here. i am dub young, let's scrap the tax code joplin i refer there be no corporate income tax and we would have some sort of higher exam gains or dividend taxes joplin just get rid of corporate tax joplin it's the worst tax in the world, agree. >> henry blodget, should there be some reasonable tax penalties to repatriate the 120 billion apple has or the te

apple created companies in ireland but senators say they had no employees or physical presence there. apple plays a tax rate of just 2%. that amounts to millions being lost in the unite. the tax rate here 35%. >> we have created this bizentine and bizarre tax code and chased them overseas. >> reporter: senators on both sides of the aisle say the tax code needs upgrading. apple agrees although billions would be taken for taxes. >> we believe reform will be fair to all taxpayers, would keep america globally competitive and would promote u.s. economic growth. >> reporter: congress is in the midst of debating tax code reform. senators called apple their best example of why that's needed. in washington, kyla campbell, ktvu channel 2 news. >>> microsoft today unveiled its next generation console the x box one. the new device acts as a replacement for your cable box. it has its own guide and you can use voice commands to change channel or from tv to internet. >>> new research in indicates that teens are gravitating toward twitter. 25% of teenagers say they use twitter that's up from 16% two

, there's no workers and they say that apple chose ireland where the company negotiated a tax rate of less than 2%, much lower than the 35% tax rate. apple paid $6 billion in u.s. taxes last year. but lawmakers estimate the company owes another $9 billion. >> the offload of taple's tax burden onto other taxpayers, particularly on the working families, small business, the lost tax revenue feeds a budget deficit. >> reporter: many republicans and president obama say they want to adjust the corporate tax pate, lower it to -- rate, lower it to make it more business friendly. apple executives said they will support the change they. they will be testifying shortly and i will tell you more next hour when i see. kyla campbell, ktvu channel 2 news. >> here's part of the 17-page response apple prepared for the hearing. "apple has been a powerful engine for job creation in the u.s. apple estimates it's created or supported approximately 600,000 jobs in the united states. ." >>> the former head of the irs heads to capitol hill today. former irs commissioner was in charge of the irs when a

the committee wrote a scathing report that found apple uses subsidiaries in ireland to avoid paying taxes, all legal because of all of these books behind me. senator john co-authored the report. >> america's tax system is broken and uncompetitive and i have long supported efforts to modernize it. however, i will not allow that position to be used as an excuse to turn a blind eye to the highly questionable tax strategies used by apple. >> apple ceo tim cook defended his company. >> we pay all of the taxes we owe every single dollar. we not only comply with the laws, but we comply with the spirit of the law. we don't depend on tax gimmicks. we don't move intellectual property offshore and use it to sell our products back to the united states to avoid taxes. >> apple isn't doing anything illegal. it is simply doing what every u.s. company does, take advantage of all of these loopholes that congress itself created. it is a point senator rand paul made during one of the hearings more fire breathing moments. >> i frankly think the committee should apologize to apple. i think the congress should

corporate if you're an irish corporation you don't pay us taxes and so ireland so apple has incorporated ireland but they keep their headquarters in cupertino so they say the u.s. government we're not a u.s. citizen we don't pay taxes they say the irish government we're not doing business here we don't pay taxes you know pay taxes to anybody anywhere it's mind boggling that's not true that's not true they still pay taxes last year they didn't pay taxes on this on this particular holding but this is the you know what we're going to hold of tens of billions of dollars just they still pay hundreds of hundreds of millions of dollars in taxes last year so let's be fair because they're it's going to they're huge an incredibly profitable and a great part was at least seventy people that doing appears to be illegal i mean i would be willing to go but yeah they have a point that it was not technically doing anything wrong i mean we can't is another goes to show you just so pretty soon every american corporation is doing the site any tax whatsoever it would well it's a little you know well did she

. >> apple has been able to create two or three phantom corporations in ireland that don't exist anywhere purposes. that is the epitome of tax creativity. >> apple avoided income taxes by $74 billion worth of profits from these overseas units, these units in ireland essentially calling these irish units, quote, shells or phantom corporations used to avoid u.s. taxes. the senate report does say there's no evidence apple engage in any illegal wrongdoing here but apple is flat out saying of the senate report is wrong, these are not how operations or phantom operations but employ 4,000 workers in its headquarters in ireland overseeing two thirds of global sales and sell apple products in europe and africa, india, asia, manufacturing, customer service apply change and finance. apple is saying the senate misapprehends the entire business structure of apple essentially saying apple does pay u.s. taxes on investment income out of those irish unit, does pay local taxes overseas and here in the united states and has paid $6 billion in federal income taxes back to the u.s. one of every $40 comes fro

apple has performed the same alchemy with asi as aoi inc. in ireland and operated in the united states but apple says it is a tax resident of neither country. unlike aoi, asi has paid a small amount of tax to ireland in 2011, it paid $10 million of taxes on $22 billion of income. that is a tax rate of 500 some of 1% and it appears this tiny tax payment may be related to activity and related to asi main purpose to serve as a receptacle for profits generated by apple's intellectual property in much of the world. apple has told the subcommittee a third subsidiary apple operations in europe, a aoe, also has no tax home. using the same claims of standards on residency. cavalier is exploiting the absurdity that we have not seen other companies use it need not continue of the united states generative looks to where the entity is inc. to determine the tax residency it is possible to penetrate the entities corporate structure for tax purposes and to collect u.s. taxes, and not in kind if it is controlled by the u.s. parent to such a degree that the shell is not

ireland, on the other hand, says is company should be taxed based on where it's controlled out of. so if it's run by people in california, then united states should tax you. apple was able to take advantage of these conflicting philosophies and say "we've got a company that's technically incorporated in ireland, it's run by people out of california and so there's no taxing authority." and as a result, many of its -- many of its subsidiaries don't pay any taxes on tens of billions of dollars of revenue and, in fact, don't even file tax returns to anyone on earth because they slip through these cracks. >> warner: now the atmosphere at that hearing with one exception was pretty much very critical of apple. what was happen's defense, tim cook's defense other than we do

holding company that performs centralized cash and investment management of apple's foreign posttax income. it was incorporated in irelandhen apple began its long standing business presence there. aoi is properly treated as a cfc under u.s. law. so, maria, a very strange situation in which we've got this testimony just a few minutes ago. apple's not telling us exactly who's going to deliver this testimony tomorrow. whether it'll be tim cook or some other official. and it is a full throated defense of findings that will be presented by the committee at 7:00 tonight. so we have the defense here. but we don't have to bring you now the findings themselves, maria. >> well done. we get the answers before we know what the questions are. >> you know, it's like college but upsidetown. >> thanks, eamon. >> you finesseed it well. >>> a question that comes to mind here, should the tax laws for bringing overseas money back home be changed so a bill is a lot cheaper for companies like apple? in other words, a tax amnesty of sorts to bring -- to repay trait that money and bring it back home without a tax obligation of some kind? >> a l

he was being questioned about apple's use of offshore accounts mostly in ireland to avoid paying billions in taxes back here in the states. cook said apple hasn't done anything wrong. he also pointed out the company paid more than $6 billion in u.s. taxes last year alone. >> we pay all the taxes we owe every, single dollar. >> what i see is apple's earning these profits outside the united states by law and regulation they're not taxable in the u.s. >> cook also recommended changes to the u.s. tax law to make it more business friendly but committee leaders want to close loopholes in the tax code to force apple and other high- tech companies to bring their profits back home. >>> futures trading is flat this morning after another record day on wall street. better-than-expected earnings from home depot and best buy helped move the market higher. the dow closed at another record high with a 52-point gain yesterday. the nasdaq rose 5 points. >>> federal reserve chairman ben bernanke goes before congress today to testify on the outbreak for the u.s. economy. investors want to know if the central

then ireland charges other parts of apple for the use of the ites technology. s a rulthe money esup in ireland in theory. and this's where it's either taxed or not taxed depending upon how the law is restructured >> warner: now, this is this isn't the only company this committee has focused on. how widespread is the practice of -- with overseas subsidiaries somehow avoiding u.s. taxes? >> it's incredibly widespread. now, what the congressional panel as well as our own reporting has indicated is that apple is for more aggressive in this and uses either pioneers and creates tactics or uses tticshate'r not aware of any other company using. that being said, there's general policy of particular tech companies trying to lower their tax bill by moving intellectual property and revenues around the world. almost every single company does this. no c.e.o. wants to say "i'm the one who volunteered the pay the most taxes." and part of the problem here is that we have a tax system that was written -- the last time it was overhauled was in the 1980s when the port their intelle

for example as the details emerged this afternoon of apple's tax the well of the detox that apple pays in ireland or doesn't pay an arm and should i say yeah there was quite a lot of raised eyebrows on the other side of course arlington county was battered by a sturdy there's a great deal of resentment the economic model that was imposed around banking and and easy credit in ireland that created the boston the irish people are repaying and so yes there's a lot of there's a lot of raised eyebrows locally let's say about what our bills doing but other than that i don't expect people to be particularly angry at the apple for practicing standard corporate practices well i will say to that is as merely using island as an example couldn't island have done more surely they are going to be criticized for not doing it because for sites that island benefit from that country like island i would pick you know an island beheaded should they not have done more . i don't really. i think is it i think the irish are is a small economy it's competing global level and it's trying to get major technology players in

by incorporating in ireland. apple says it is the largest tax payer in the u.s. at $6 billion and its strategies are legal. its ceo tim cook is expected to testify at a senate hearing tomorrow. boeing's new 787 dreamliner is airborne again in the u.s., four months after being grounded over battery issues. united airlines flew one of the new jets on a houston to chicago route this morning. the company said its dreamliners will resume international flights next month. in january, the worldwide fleet of 787'was grnded aer incidents of the lithium ion batteries overheating and smoldering. boeing ultimately redesigned the battery and its charger. wall street had trouble getting off the ground today. the dow jones industrial average lost 19 points to close at 15,335. the nasdaq fell two points to close at 3,496. those are some of the day's major stories. now, back to judy. >> woodruff: now to syria, where president bashar al assad's army has been trying to retake a strategically critical town near the lebanon border from rebels. the sounds of an unrelenting battle in t

that's how much money apple is accused of hiding from the i=r=s. and where is it hidden? irelandfor one. critics say three apple corporations there hold 60 percent of the corporation's profits, and pay virtually no taxes. ceo tim cook says apple is proud to be an american company. >>we pay all the taxes we owe. every single dollar. we not only comply with the law, but we comply with the spirit of the laws. senator john mccain was skeptical, but he had another question. >>mccain: "what i really wanted to ask is why the hell i have to keep updating the apps on my iphone all the time and why you don't fix that? thank you, mr. chairman." cook: "swe make them better all the time." everything was all smiles at the end of tim cook's testimony. but that doesn't mean the company is off the hook. the senators are still pushing to close the loopholes apple has been using to its advantage. >> pam: >> pam: jury deliberations deciding whether jodi arias should be sentenced to life in prison or the death penalty will continue tomorrow morning. spare her life during the penalty phase of her murd

by setting up a subsidiary in ireland, "-- apple sales international, paid virtually no taxes on sales of $74 billion between 2009 and 2012." furthermore, "in 2011, it paid $10 million in taxes on $22 billion in profits, or a rate of 0.05 per cent." as that great newspaper "the onion" observed, tongue firmly in cheek, "that must be how they keep their prices so low." now look at these headlines -- "deja vu on the hill: wall street lobbyists roll back finance reform, again," "derivatives reform on the ropes," "banks win big as regulators refuse to rein in $700 trillion derivatives market." and on and on. the banking industry's all-out campaign to gut the reforms enacted just three years ago to put an end to the financial chicanery that almost destroyed us in 2008. which brings us to another finalist for this week's honor roll of questionable accountability, jpmorgan chase, the largest bank in the united states. despite the bank's year of embarrassing behavior, shareholders re-elected their entire board of directors and voted that chairman and ceo jamie dimon could hold onto both his hig

avoidance is this question of subsidiaries of apple that are not tax residence in any jurisdiction around the world. they may be legally registered in ireland, but they're not official tax residents of the country, also not of the united states or any country anywhere around the world. that is the thing that the committee is saying has never been seen before by them. and a lot of tax experts they say they spoke to expressed

>> yes, apple incorporated owns directly or indirectly aoi, aoi and asi. >> all those companies in irelandlly owned by apple incorporated, yes. >> and where is aoi functionally managed and controlled? >> in our view it is functionally managed and controlled, which is an irish legal concept, in the united states. >> a february 11 letter to the subcommittee apple wrote, quote, has not made a determination regarding the location of aoi central manage lt control. why did you tell us that? >> mr. chairman, the reason we responded in that manner is that under irish law, the requirement for evaluating our concluding on the tax residency of ireland looks to whether or not central management and control takes place in ireland or not. it does not formally require that you make a determination that it takes place somewhere else. >> but you've told us here this morning that you believe that the location of aoi's central management control is in the united states -- or apple has concluded that, is that correct? >> yes. and i believe that? a previous meeting with your staff, they asked the same question

apple will say we're incorporated over here in ireland, and in ireland they tax based on where you'reed over in california. so they avoided taxes on $104 billion in profits over the last four years. an enormous amount. that's probably about $30 billion that could be coming back into the united states in terms of taxes. >> it is what apple did, as sneaky as it looks, is legal, right? >> it's absolutely legal. they took advantage of the fact that american law and irish law simply treat corporate earnings differently and they found this sort of gap between the two systems. what's remarkable is as aggressive apple has been at this, they are not the most successful companies. apple support on that list that paid no taxes at all, so it's an incredible genius system they came up about, but it's not billions of taxes of. well, the stimulus bill gives a tremendous amount of opportunity to off set any losses. so you can earn profits but not register any accounting profits that are taxable. and that's how you really get down into that zero territory. nothing as what poinl have been able to do. >

. >> what's apple's been able to do is create two phantom, or three phantom corporations in ireland thator tax purposes, that is tax creativity. >> what they are saying is that apple shifted $74 billion away from the united states using units in ireland, these units do not pay federal federal income taxes to the u.s. or other entities. apple is saying, jenna, that these are not shells, these are not phantom operations, apple is saying the senate report is flat out wrong. of it is saying that the units in ireland, they are the cork international headquarters for apple, that they employ 4,000 workers, they oversee two-thirds of global sales for apple and help sell apple products in europe, the middle east, africa, and asia, and they actually do do manufacturing and customer service and other things for apple's oversees operations. tim cook is testifying moments ago, jenna, he's saying we have that money that is overseas, $102 billion is overseas to support our global operations overseas. this is now a heated battle, a heated fight down in washington d.c. with senator rand paul not going af

this morning the committee called apple ceo tim cook to testify asking if apple takes advantage of tax laws, particularly in ireland, to avoid paying u.s. taxes. here is cook's testimony. >> we don't depend on tax gimmicks. we don't move in ele intellectu property offshore. we don't stash money on some caribbean island. we don't move our money from our subsidiaries to fund u.s. business in order to skirt the repatriation tax. >> it's complicated. they ask professors at villanova and harvard to explain it to them. those senators themselves wrote the tax law. this is not our first time at the tax rodeo. last time the very same committee asked questions of hewlett-packard. enough about taxes, lets talk about xbox. there's a new xbox brand-new through microsoft called xbox 1. it was just announced less than an hour ago. one of the new features it switches between xbox and cable and other sources automatically becoming your central hub. and will show you what your friends are watching on television or netflix and you can connect through video on skype. we'll have a lot more about the xbox tomorrow morning. back to you.

it pays ireland the tax rate of less than 2% compared with a 35% nominal rate for corporations in the u.s. >> apple is a great company, but no company should be able to determine how much it is going to pay in taxes, how many profits they are going to keep offshore, how they are going to bring them back home using all kinds of gimmicks to avoid paying the taxes that should be paid to this country. >> it is completely outrageous that the -- that apple has completely managed to avoid paying taxes around the world. >> apple ceo tim cook was unapologetic. , expects to he said pay $7 billion in u.s. taxes this year, making it the country's biggest corporate taxpayer, but he offered to pay some taxes on global profits. >> this would likely result in an increase in u.s. taxes, but we strongly believe that such comprehensive reform would be ,ll -- fair to all taxpayers would keep america globally competitive, and would promote u.s. economic growth. >> president barack obama has offered to cut u.s. corporate rates as part of an overall streamlining of the u.s. tax code. under the present system, trillion in

he was being questioned yesterday about apple's use of offshore accounts mostly in ireland to avoid paying billions of dollars in taxes. cook said apple has done nothing wrong. he also pointed out the company paid more than $6 billion in u.s. taxes last year alone. >> we pay all the taxes we owe, every, single dollar. >> what i see is apple's earning these profits outside the united states by law and regulation they are not taxable in the u.s. >> cook also recommended changes to u.s. tax law to make it more business-friendly, but committee leaders want to close loopholes in the tax code to force apple and other big companies to bring their profits home. >>> coming up, another big comeback win for the giants. >> plus, a slow start for one team at the shark tank. we have sports highlights for game 4 of the stanley cup play- offs. thanks, olivia. thank you. so you can make a payment from your cell to almost anyone's phone or email. (speaking french) so you can express your gratitude... in the moment. [ male announcer ] wouldn't it be great if all devices had backup power? the chevrolet volt d

apple have an unfair advantage over domestic-based corporations and companies? in other words, smaller companies in this country that don't have the same ability that you do to locate in ireland or other countries overseas? >> no, sir, it's not the way that i see it, and i'd like to describe that. the way i look at this is apple pays 30.5% of its profits in taxes in the united states. and i don't know exactly where this stacks up relative to other companies, but i would guess it's extremely high on the list. i know with the 6 billion we're the top payer in the united states. we do have a low tax rate outside the united states, but this tax rate is for products that we sell outside the united states not within. and so the way that i look at this is there's no shifting going on that i see at all. and, in addition, if you look at apple versus other companies that do not sell in the u.s., i would say that the applicable comparison would be the 30.5% effective rate not our foreign tax rate. >> well, let's get a little simpler here. why does aoi exist? >> sir -- >> how is its income generated? how is its income taxed? why was aoi incorporated in ireland? 4,000 employees is impressi

and what cook pointed out, and he's used to running international operations for apple, so he know what he speaks in ireland and elsewhere, they paid every nickle off of foreign income they earned. every nickle. they didn't donnell anything, frank. that's why i don't understand this whole hearing. >> well, larry, they're just not paying much in taxes. the tax rate in ireland is 2%. the tax rate in america is 35%. as the investigation by this committee showed, if those profits, $100 billion in profits are sitting off shore in ireland, if that money was brought back to the united states, they would pay about $40 billion in taxes. >> why should they? in why should they when they don't have to, why should they when they're legally saying to the united states, to the congress, to john mccain and anybody else, you guys are so dumb, they're saying. why should we double tax these profits? why should we triple tax these profits? this is shareholder money. and they could invest the profits, frank. that's the part i don't get. you want to bleed them some more. >> no, the significance of this hearing is, it's actually

ireland to singapore. annual sales hit $300 million. apple'scess led to growing interest in its stock as the company prepared to go public. it's clear that for underwriters and investors, in the fall of 1980, the prospect of an apple public offering seemed like the second coming. the people who had stakes in the company, those underwriting it, those who invested, would see three lemons on the slot machine. apple stock was snapped up by the public, making it the largest initial offering since ford went public. in addition to raising cash, the offering rewarded employees and investors handsomely. thbig winners were apple's founding entrepreneurs, steve jobs and steve wozniak, who had, in a short time, become multimillionaires because of their creation. it was rather astounding. it was one of the finest products ever that deserved to be such a winner. you couldn't have looked ahead and expected it. of those who turned inventions into fortunes in silicon valley, none did it as spectacularly as apple's founders. but are such huge profits justified?

apple defended the tax cuts at a u.s. senate hearing and they say he avoids taxes by placing billions in ireland.gypt's army says it's ready to start a operation to rescue seven kidnapped soldiers and policemen. the men were taken hostage last thursday in the sinai. we have more. >> these are reinforcements from the egyptian army and more than 60 armored vehicles are in the northern sinai. 250 shoulders and 450 policemen have arrived as well. it's unclear will whether this is a show of force from the egyptian government to intimidate the kidnappers or the first move towards an offensive. the kidnapping of egyptian soldiers puts the president in a difficult position. he doesn't want to negotiate with the hostage takers but if he send the army in to try and free them, he risks soldiers being killed. border guards at the border crossing of gaza have gone on strike to support the kidnapped colleagues. they say the rossing will stay closed until the men are released. >> i don't feel safe. and if i don't feel safe, no one is. everyone in egypt should support us so we can protect the people in the count