apple's o being dragged to capitol hill next week to explain to the folks who have no cash why he sitting cautiously on a lot neil: all right. what's that they say about no good deed goes unpunished? apple cautiously guards its loot to prepare for a rainy day, and the folks who have spent all of our loot, all of our futures want to know why he can't be like them and blow it all away. that is, basically, what apple's ceo tim cook is up against when he plays what i'm sure will be a pinata an capitol hill next week. lawmakers are asking him to defend his $100 billion cash stash. why can't you blow it like us? adam, that's weird. that's all i'm saying, that's weird. [laughter] i think i got the gist of it. >> i don't know that they're asking him to defend anything so much as discuss and explain apple's tax plicy. i mean, there's a perfectly legitimate discussion to be had here about why it is, fir of all, that apple doesn't repatriate its cash. tim cook has a very good answer for that. they would have to face high taxes to do it. but there's also this elaborate scheme that apple and other u.s

the gist of it. >> ion't know that they're asking him to defend anything so much as discuss and explain apple's. iean, there's a perfectly legitimate discussion to be had here about why it is, first of all, that apple doesn't repatriate its cash. tim cook has a very good answer for that. they would have to face high taxes to do it. but there's also this elaborate scheme that apple and other u.s. companies very legally use to put thr, to route thr money through caribbean islands and luxembourg and iland and reno, nevada, and the list -- neil: wait a minute, how do you get from luxembourg to reno, nevada? gene marx, what do you make of that? >> first of all, whatever schemes they're doing as long as it's legal, it's legal. and it's very interesting they're bringing in tim cook because, you know, he runs apple which happens to be one of the most well known companies on the planet, so why not get a little press out of that as well. neil: good point. >> imagine someone saying to you this is the amount of money you have in your account, and the government says you have to spend it on this that. that'

apple's ceo beingragged to capitol hill next week to explain to the folks who have no cash why he's sitting lot thank you orville and wilbur... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're hisry. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪ but maybe the problem isn'isn't your lawn. introducing the all-wheel-drive mower from husqvarna. we engineered its unique drive system and dual transmission to handle hills& thick grass& and tough terrain& without losing traction or power the all-wheel-drive mower from husqvarna. challee the impossible.

next, how a hedge fund manager made a killing in apple using options. we'll explain how he did it and how you can do it, too. that's next. >>> well, that wasn't so magical. dan made a bearish bet on disney. the stock flew higher. find out when we return. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ >>> i had a great trade, actually. about two weeks ago, i bought a january 400 call. so sold the january 460 call and sold the january 325 put, zero. >> nice. >> no question. took out about $30. >> that was legendary investor from las vegas talking about his bulli

blogs, so, check it out. >>> coming up next, how one hedge fund manager made a killing in apple using options. explain he did it and how you can do it, too. that's what's next. >>> well, that wasn't so magical. dan made a bearish bet on disney, but the stock has just flown higher. so, how can he beat the mouse house and save his trade? find out when "options action" returns. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. what makes a sleep number what makes a sleep number store different? you walk into a conventional mattress store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. if you want a soft bed you can lie on one of those." we provide the exact individualization that your body needs. the sleep number memorial day sale. not just ordinary beds on sale, but the bed that can change your life on sal

i'm not sure that apple would think today they're doing that, but think that the seal presented a spirited defense, explainthe law. good for him, and let's get the congress now focused on what needs to be done, and that is a reform on an outmoded tax cut that is desperately in need of modernization. ashley: one can only hope. thank you so much. appreciate your comments. >> thank you. lori: liz claman is here to tak you to the last hour of trading. she will have all of the deed - day trading action. right before a major announcement. she will check in with the oklahoma native an oilman with company headquarters all locate near the tornado devastation in the moore, oklahoma. countdown to the closing bell i next. ♪ ♪ ♪ [ male announcer ] how do you engineer a true automotive kthrough? ♪ you give it bold styling, unsurpassed luxury and nearly 1,000 improvements. the redesigned 2013 glk. see your authorized mercedes-benz dealer for exceponal offers through mercedes-bz financial services. ...amelia... neil and buz for teaching us that you can't create the future... by clinging to the past. you're history. instea

apple? tune in and i'll explain. that's today at 2:00 p.m.saturday morning" continues right now. >>> from cnn world headquarters in atlanta, this is "cnn saturday morning." >> my son might be in a tent with a gay kid. the kid was going to be gay regardless. it's just he might actually tell you now. >> the vote is in. the controversy is stronger than ever. why the boy scouts new policy has some

apple story. charles duhigg has been covering it for the "new york times" and joins me now. charles, welcome back. first, explainus how did apple structure itself so that it could avoid paying taxes on its overseas income to any government? i mean, senator levin accused apple of using ghost companies. >> it -- apple took advantage of loopholes that exist in our tax system and every tax system. fornstance, the united states ys tt a company should be taxed wreit's based. for instance, if you have a subsidiary in ireland than ireland should collect taxes on your revenue. 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 it -- many of its suidiaes don't y a taxes on tens of billions of dollars of revenue and, in fact, don't even file tax returns to anyone on e

but by the same token, these are tax and spend guys who have to explain why would apple have 74 billionperiod and not pay taxes and exxonmobil paying gobs and gobs of money, get away scott free? listen, it's one of these things we keep hearing about the whole tax -- let's reform taxes in general. that's been sort of the surface narrative with the irs scandal and with this. maybe we'll get something done and apple obviously playing within the rules and you have to ask yourself the greater question, why wouldn't the company want to bring money back to this country and what's stopping them? other than the tax-- >> can you expect a politician to go out and way, we've got to lower the tax rate on an apple, even though they didn't pay a dime in taxes on 74 billion dollars worth of profit that was made overseas? that's a difficult political argument to make, isn't it? >> it's a huge political argument to make, but here is the thing, where are politicians going to say to corporate america to bring money back to this country? we want you to pay taxes where you make it and 35% when you bring it b

apple store. the woman created it explains why the latest plan won't hold water. >> in sacramento, braise raizingver three years win as proveal in the assembly. low wage workers celebrate. companies do not. >>> breaking news in southern california. a fire is growing quickly now, fortsing evacuations in the mountains north of los angeles. >> this fire burning along california aqua duct and rows of high voltage power lines, we saw some popping in the flames. electricity has been rerouted away from those lines and take a look. we have video to share with you showing the structure burning to the ground here, the fire charred about 400 acres. that is the only structure we know of that has burned. >> let's show you another live look. 20 miles per hour winds are pushing flames, only about 150 acres burned and now, remember, they're estimated it to be 400 acres so it's spread rapidly. we'll continue to monitor this fire for you update with you developments here during this hour and on twitter on abc 7 news bay area, so please, stay tuned. good evening, i'm dan ashley. >> fire conditions here in the bay a

when interviewed apple officials could not explain why asi needed to acquire apple intellectual property economic rights in order to conduct business abroad. interest in the party's agreement renewed the agreement several times most recently in 2009 and modify the agreement at any time. further evidence that this is not an any sense an arm's length transaction. second, 95% of apples are indeed the engine behind the success of apple products is conducted in the united states. figures provided by apple show that over a four-year period from 2009 to 2012, asi paid approximately $5 billion apple, inc. has its share of guaranteed costs. over that same period asi receipt profits of $74 billion. the difference between asi's cost of the projects is almost $70 billion is how much taxable income the absence of apple, inc.'s cost-sharing agreement with its own subsidiaries and its use of other tax loopholes would otherwise flow to the united states. in comparison over the same four years, apple and paid $4 billion under the cost-sharing agreement and to clear profits of $38 billion for sales in the

apple's complex tax strategies really draw -- it is an example of what's wrong with the tax code. explain how u.s. multinationals take advantage of the loopholes in the system. >> one of the big things discussed on tuesday when apple was on the hill was and called a cost sharing agreement. u.s. multinationals choose to share things like the costs of research and development, whether they are offshore subsidiaries or in cases of ireland no tax countries. what the problem with that is tax experts say is that they give the offshore subsidiaries a sweetheart deal that they would not give an outside party, so if i am going to invite you in to get in on the ground floor of my next great product, i will make you pay for that. what happened in the case of apple is that they -- the offshore subsidiaries pay a little more than 50% of the costs and earned about 15 times the profits on their investment where as the u.s.-based operation only earned about eight times. that sort of raises a red flag to tax experts saying that a fair market price that you charge your subsidiaries and that offshore profit

apple store. the woman created it explains why the latest plan won't hold water. >> in sacramento, braise raizing california minimum wage over three years win as proveal in the assembly. low wage workers celebrate. companies do not. >>> breaking news in southern california. a fire is growing quickly now, fortsing evacuations in the mountains north of los angeles. >> this fire burning along california aqua duct and rows of high voltage power lines, we saw some popping in the flames. electricity has been rerouted away from those lines and take a look. we have video to share with you showing the structure burning to the ground here, the fire charred about 400 acres. that is the only structure we know of that has burned. >> let's show you another live look. 20 miles per hour winds are pushing flames, only about 150 acres burned and now, remember, they're estimated it to be 400 acres so it's spread rapidly. we'll continue to monitor this fire for you and update with you developments here during this hour and on twitter on abc 7 news bay area, so please, stay tuned. good evening, i'm dan ashley. >> fir

apple? tune in and i'll explain. that's today at 2:00 p.m. "cnn saturday morning" continues right now. >>> from cnn world headquarters in atlanta, this is "cnn saturday morning." >> my son might be in a tent with a gay kid. the kid was going to be gay regardless. it's just he might actually tell you now. >> the vote is in. the controversy is stronger than ever. why the boy scouts new policy has some people threatening to leave the group all together. >>> the decision to apply for a warrant for a fox news reporter's e-mails came from the highest levels. it may surprise you how high. >> i want everyone to know. you don't have to find out you're dying to start living. >> a powerful message from a teenager who lost his battle with cancer this week. he left behind a story of inspiration and a song that helped make him known around the world. i'll talk to the filmmaker who captured this amazing story of the boy in the clouds. >>> good morning. i'm poppy harlow. thank you for joining us. it's 10:00 on the east coast. 7:00 out west. glad you're with

transferring an intellectual property rights to each region or country and when interviewed apple officials could not explain why asi needed to acquire apple intellectual property economic rights in order to conduct business abroad. and as all parties are identical the renewed the agreement several times most recently in 2009 to modify the agreement at any time. further evidence this is not in any sense an arm's-length transaction. second, 95 percent is the engine it's behind the success of apple products conducted in the united states. the figures provided by apple show over a four year period from 2009 through 2012 is asi paid $5 billion to apple, inc. as its share of the r&d costs. over the same period asi had profits of $74 billion. the difference between asi cost of their profits come almost $70 billion, how much taxable income in the absence of the apple, inc. kashering agreement with other tax loopholes which have flowed to the united states. in comparison over the same for years apple, inc. paid $4 billion under the cost sharing agreement to declare profits of $38 billion the subsidiary asi received

apple's complex tax strategies really draw an example of what is wrong with our tax code. explainmultinationals take advantage of this loophole? >> one of the ings that was discussed when apple was on the hill was something called a cautionary agreement. u.s. multinationals choose to share things such as the cost of research and development or in the case of ireland, no-tax countries. what the problem of that is is tax experts say is they give the offshore subsidiaries a sweet deal. if i'm going to invite you in to get in on the ground floor of my next great product, i'm going to make you pay for that. what happened in the case of apple is the subsidiaries pay a little more than 50% of the cost, but they earned about 15 times the profit on their investment, where as the u.s. based operation only earned about eight times. that raises a red flag to tax experts to say is that a fair market price? and then as david noted, they don't get paid -- u.s. taxes are not paid on that for years and years because they don't bring the money back home. >> what i learned last week listening to the

explain, folks. but this lesson from apple really, i think, illustrated the problem.ate coupulture is do something that may not be illegal but definitely is against the spirit of law. i hope this is a wake-up call for american consumers who -- as i understand, you're paying -- when apple doesn't pay, it means you pay more. >> mall business owner, you're a sole proprietorship. he's paying more in taxes because other small guys on main street. there is a debate which is grullying on several. it may not happen this year because there are lots of competing organizations and businesses. the public has to get engaged in this battle. we've got to make corporations pay more. >> that's something that the with the himself had to say about that. so you can capture your receipts, and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork. and more time doing paperwork. ink from chase. so you can. ♪ the middle of this special moment and i need to run off to the bathroom. ♪ i'm fed up with always having to put my bladder's needs ahead of my

explain from the new york storm. jane? >> good morning, the poll says applelosing their edge, 71 percent of those say they lost their cache as an innovator. they are down 40 percent from the all-time high. there is a slight upswing today and over all with the markets in the green. the silicon valley index is following suit. >> the robot of "star trek" will probable take in $112 million in the debut with an usually start in the theaters getting an advantage for the weekend box office. it opened a day earlier than originally planned in north america. >> as high as home prices are in the bay area it is keeper to rent than to boy if you stay put forren a average of three months in san francisco and san jose. that is if you take into consideration things like tax deduction and maintenance and upgrant fees and closing costs. if you live in presidio, you have to stay five years to be her to buy n china town and bayview you only have to stay two years for it to become cheaper. >> have a great weekend. >> before you know five things to know with the only news back >>

i would like to explain to the subcommittee very clearly how we view our responsibility with respect to taxes. apple has real operations in real places with apple employees selling real products to real customers. ,e 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. 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. we don't -- money on some caribbean island. to fund move our money avoid theusiness and repatriation tax. our four subsidiaries hold 70% of our cash because of the rapid growth of our international business. we use these earnings to fund our foreign operations, spending billions of dollars to acquire equipment to make up products and finance construction of apple retail stores around the world. under the current u.s. corporate veryystem, it would be expensive to bring the cash back to the united states. unfortunately, the tax code has not kept up with the digital age. the tax system handicaps american corporations in

explain it all. our chief economics correspondent has been following that. >> it is a global brand and its devices are used in countries around the world. apple has been hailed as an american success story. politicians are accusing it of not paying its fair share of corporate taxes. >> the real issue is the billions in taxes that it is not paying. thanks to offshore tax strategies whose purpose is tax avoidance, pure and simple. sworn inbosses were and mounted a robust defense of their position. >> 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. -- taxot depend on cap gimmicks. >> one made 33 billion dollars over years but paid no income tax over that time. another made 74 billion in profit and pay tax on up tiny fraction of that. --land has long had a long low tax regime. it said it was not to lame for their level of tax payments. this was a global issue. >> insofar that there is an and -- an international dimension, it needs to be tackled by having robust national agreements and apple is in favor of that. whether it is apple or other , theympanies under fire sell

apples at mcdonald's. >> have a great weekend. have a burger. >> all right. sue? >> we are going to explain what is behind that and the growing trend for what it means if interest housing recovery. hey kevin...still eating chalk for heartburn? yeah... try new alka seltzer fruit chews. they work fast on heartburn and taste awesome. these are good. told ya! i'm feeling better already. [ male announcer ] new alka seltzer fruits chews. enjoy the relief! it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. the act of soaring across an ocean in a three-hundred-ton rocket doesn't raise as much as an eyebrow for these veterans of the sky. however, seeing this little beauty over international waters is enough to bring a traveler to tears. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving. >> all right. let's get a check of the bond market right now which closes early today. the focu

explain that disparity? >> sure, senator. and i'll make some comments and pass it to peter. generally apple'sntosh business is a larger percentage of its sales in the u.s. than internationally. as we launched the iphone, iphone became a larger percentage of our international business than it did a part of our u.s. business because we had this nice base of mcintosh sales in the u.s. the iphone generally speaking has higher gross margins than our mcintosh business, so it's logical that the international business generally would carry higher margins than domestic. peter may be able to add to this. >> to summarize, you have a more profitable mix internationally than in the u.s.? that explains the difference? >> it does. >> i was talking earlier about who are the beneficiaries of your very good tax rates overseas. i would point out, i think this is true, that if we ever do tax reform, if we ever do incentivize companies, the way current tax law is written, you would get a deduction for foreign taxes paid, correct? >> that's correct. it's actually a credit, dollar for dollar credit. >> so as a resu

he will be asked to explain the details that have been released in this report today joplin he will be there with other apple executives joplin we will bring you all of that tomorrow morning. he will be facing very tough questions in the context of this report joplin. >> ayman javers, thanks very, very much joplin take a look at this, apple's expense was the third highest at $14 billion joplin that's federal, state, local joplin how can the senate harass tim cook when apple is already paying so much joplin let's bring back henry bloj it and what do you make of this story? >> i am, first of all, surprised on how tough they are being on apple joplin it shows how fall apple has fallen joplin apple is spectacular at dodging taxes joplin nobody is alleging that they're doing anything illegal, however joplin i think apple's point is going to be, how could you expect us not to have our accounttants and lawyers construct ways for to us pay the least amount of factions possible joplin that's ridiculous joplin they point out, obviously, they paid a lot of taxes. >> jimmy p joplin in the wheat tournal i read late this

explains laws and urges you to upload your own original material. >> if russell and lumpy can figure itd out. >> yes. >> that is a great idea. >> san francisco versus apple. >> the landmark could ruin floornz a new flag ship store in union square. >> in the abc 7 newsroom at 5:00 fighting fire with fire. the bay area hot spot where crews were out in force taking measures today. also... >> i was -- we love this lady. a woman abandoned as a baby finds the woman that found her. there is just one other woman she hopes to meet. you'll get the >>> abc 7 if the @ 8:00 a battle royal appears to be brewing in san francisco between apple and a unique fountain in union square. we're live with the developments. >> skm... leanne? >> sorry guys just admiring some of the parts of the sculpture here. this is turning into a bit of a headache for apple and city of san francisco. now, hyatt owns the property and will lease the store occupied right now by levis. they'll lease it to apple, apple wants tochl pand and the roof of the fountain which is very well known around the world. it's not included in their plans and this is what it will look like. a typical apple store gl

and had explained that, you know, all of the profits from apple products, that are being purchased overseas. and so none of the products that are being sold in the united states are being shifted so to speak. >> bill: i think you made a very important point. he did say, i don't think anybody necessarily accused him of breaking the law. but that is the problem. you can avoid -- you can observe the law and still not pay your taxes. but because of all the possible loopholes and gains that people can play and as far as rand paul was concerned the more games they play, the more they should be admired. here's rand paul yesterday. >> frankly, i'm offended by the tone and tenor of this hearing. i'm offended by a $4 trillion government bullying, berating and badgering one of america's greatest success stories. you know, tell me one of these politicians up here who doesn't minimize their taxes. tell me a chief financial officer that you would hire if he didn't try to minimize your taxes legally. tell me what apple's done that is illegal. >> bill: isn't that a strange message that, you know, we all ch

explains why. that's a new phenomenon usually when the price of gold goes down people have been sellers because they believe hollywood they believe washington they believe they believe bernanke eat an apple know that obama bernanke in ways of the all in one america is full of books who they don't believe them anymore so when the price goes down the demand surges demand surges on price breaks that's something new in the past fifty years we have not seen this in fifty years when the price goes down demand increases because of the watchers of this show around the world in hotel rooms in airports and homes throughout the entire globe and they're in the hallway they're saying because you're going to buy gold and the demand was still beating for the gold they love it they know the dollar was done. well when we come back the full story behind global financial had lines in our new show prime interest famous. famous american political figure ron paul has decided to create his own liberty oriented homeschooling curriculum at ron paul curriculum back to give parents not turn it into standard public education you know when i was a kid homeschooling was only for like the kids of wacko's and cultists

i think he did a real good job explaining what their benefit is to the world economy. appleble for 600,000 jobs. and that was a point that was pretty well made. you know, when you combine not only the tax they paid in america but also their suppliers, probably totals 12 or 13 billion dollars. as an example, just quietly released a report. 2300 jobs. 11.5 million per job. i guess i would put my money behind the private sector versus -- >> senator, how many employees did you have? >> maybe 130. we were a very capital intensive business. >> but you know how that works. and it became very clear to most people watching if they have 60% of profits overseas and they can leave them there, they're not going to bring them back at 35%. they would like to. i would like to have that back here for plant expansion or dividends or for whatever. but it's your fault. it's congress's fault that it's not coming back. >> it's the federal government's fault. when you have 35% corporate tax rate and canada is 15%, if you're a global manager and you want to invest in the north american market, are

. >> up next on the program, the man who says apple shares could half in value. he'll explaineach one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪ oh, he's a fighter alright. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at duerapy.com. >> and we are an hour into trade. the stories we are squawking about, 7:34 on the west coast and 10:34 on the east coast. deere, down 4%. the farm development giant issuing a cautious outlook, due to what it calls lingering economic concerns in many parts of the world. bank of america and citigroup hitting now 52-week highs and each up more than 40% in the last six mon

the ceo of apple is scheduled to testify this morning to explain their tax strategy.ou can watch it live at 9:30 a.m. eastern on our website c- span.org. an update from cbs this morning on the oklahoma tornado. they tweet out that the oklahoma governor commenting on search and rescue efforts says it would be "incredible if anybody survived collapsed holdings." meanwhile, a tweet that the oklahoma medical examiner now puts the death toll in more, oklahoma at 24, not 51, saying some victims were double counted. we will hear more on the recovery efforts and 45 minutes from president obama. you can hear the president live on c-span radio. those are some of the latest headlines on c-span radio. is the parlor. this is the way it looked 1880 campaign.'s this was both a formal parlor in family room, served as both. they spent a lot of time with their children. they have lost two children to infancy. those children died before the family moved here. and all five children had the benefit of having to do very intelligent parents who strongly believed in education. also very impo

apple versus samsung saga continues. a decision in the patent infringement case delayed by u.s. international trade commission. the commission scheduled to announce today but set a new target date without explaining the reason for the delay in a notice posted on the wen site. a decision day has been picked to decide the future of dell the board urging shareholders to vote for the buyout. calling it the best alternative available. that vote is set to take place july 18th setting up a possible showdown activist investor carl icon is expected to press shareholders to reject the dell proposal. after some depar tours facebook ceo's added new friends. barry diller and a founder of you tube, steve chen have joinsed the group seeking immigration and education reforms. this after elan musk announced departure from the group. a huge after ther yaid the size of the golden gate bridge coming within 3.6 million miles from earth. at bloomberg studios i'm emily chang, larry, carolyn, back to you. >> have a great weekend. >> fema has come up with a way to see how communities are doing after a hurricane, they go to the waffle house. current administrator began using the waffle house index when he headed disastrou

apple doesn't fall far from the tree. >>> plus, the cruise industry has had its share of troubles recently, but some people stand to benefit from it. we'll explainearching for answer. the latest on the investigation into that deadly limousine fire on the san mateo bridge. hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! ♪ wow. [ buzz ] delicious, right? yeah. it's the honey, it makes it taste so... ♪ well, would you look at the time... what's the rush? bee happy. bee healthy. with clusters of flakes and o's. oh, ho ho... it's the honey sweetness. i...i mean, you...love. >>> tonight's top story, a bridal celebration that turned deadly on a san mateo bridge. >> five women died, including the bride-to-be hen a limousine they were riding in suddenly burst into flames. this is cell phone video of the tragedy. it happened about 10:00 last night. nbc's diana alvear has more on the investigation. >> reporter: by the time the driver of this limo says he smelled smoke and stopped, the flames had already begun to consume the vehicle. >> there were ten people in the vehicle. the driver, plus

apple has no comment left. clayton? that explains >> clayton: need a kick start this morning get my ipad up to my chest. thank you, alli. they cost taxpayers nearly $200 billion in 2008. no small chunk of change. fannie mae and freddie mac about to repay money to the treasury. that sounds great. some are calling the move accounting gimmick. is this just the playing politics with your money? nice to see you this morning, welcome. >> good morning, clayton. basically it is a little bit of a a counting play. essentially freddie mac and fannie mae have made this 67 billion-dollar profit after not being solvent for so long and they want to pay treasury. >> it is a gimmick. they are using basically fake money to pretend that they're profitable so they can send money back? it's like monopoly money. in a sense they are switching from one pocket to the other. what we are seeing here is that when they receive $188 billion from the federal government, in exchange for that, they created these tax write offs and delayed options for the government

apple issuance today. >> ted, a part of the asset allocation that has been trashed has been the emerging markets and the global markets. you're a guy that knows these markets well. explainhis to me. i'd like the pushback on your view that if the fed and the ecb and the bank of japan are doing everything, then markets should be taking. emerging markets that have better fundamentals -- not only have they been getting destroyed, but certainly a place where assets have been moving away in the last few months at a time when they probably should be allocating in. so quick view on the world economy and why it hasn't participated at least the developing world. >> i must admit, i'm somewhat surprised by this, too. i completely agree with your statement that the emerging market fundamentals are better than some of the developed countries. quite frankly, i think this is one where you've got to play these markets for the long run. i understand it's disappointed recently. i can't really point to anything specific. and to your point, we should be seeing something better happening with quite frankly very low rates. it is possible that there are just a number of people looking at these

a place to explain very clearly how we feel our responsibility with respect to taxes. applehas real operations in real places with apple employees selling real products to real customers. owe,id of all the taxes we every single dollar. depend on tax gimmicks. we do not move intellectual property offshore. we do not stash money on some caribbean island. we do not move our money from our foreign subsidiaries in north to skirt the repatriation tax. growth of ourapid international business. we use these earnings to fund our foreign operations such as spending billions of dollars to make apple products. u.s. tax current system, it would be very expensive to bring that cash back to the united states. not kept up has with the digital age. the tax system handicaps american corporations in relation to our foreign competitors who do not have such restraints on the free movement of capital. apple is a company of strong values. we believe our extraordinary success brings increased responsibilities to the communities where we live, work, and sell our products. to whomce the belief much i

i would like to explain to the sub committee very clearly how we view our responsibility with respect to tacks. appleproducts to real customers. 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. we don't move an electrical property offshore and use it to sell our products back to the united states to avoid taxes. we don't stash money on some caribbean island. we don't move our money from foreign subsidiaries in order to reskirt the tax. our foreign subsidiaries hold 70% of the cash because of the very rapid growth of our international business. we use the earnings to fund our foreign operations, such as spending billions to acquire commitments for apple products and apple retail products around the world. under the current u.s. corporate tax system, it would be very expensive to bring that cash back to the united states. umpl the tax code has not kept up with the digital age. it handicaps american corporations in relationship to the foreign competitors who dount ha don't have constraints on th

apple and steven cohen. it may be the first time you'll hear about both in the same story. we'll explain. you've known?and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ oh, boy. [ groans ] ♪ ♪ [ engine revs ] ♪ are proven to be effective pain relievers tylenol works by blocking pain signals to your brain bayer back & body's dual action formula includes aspirin, which blocks pain at the site. try the power of bayer back & body. when the doctor told me that i could smoke for the first week... i'm like...yeah, ok... little did i know that one week later i wasn't smoking. [ male announcer ] along with support, chantix (varenicline) is proven to help people quit smoking. it reduces the urge to smoke. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after

apple is based in california in 2012 enjoyed sales of $157 billion. that's $47 billion in profit in just one year. and what the senators wanted cook to explainthis report. and they pay no u.s. taxes even though the businesses are run from the united states. one subsidiary called it aoi, manages to have no legal tax residents at all. so it doesn't pay taxes to any country. despite polling in $30 billion in revenue in the past four years, and get this, it has no employees. $30 billion in revenue in a company with no employees. carl levin called to set up the holy grail of tax avoidance. they have used a variety of o offstore structures to shoot billions of dollars in profits away from the united states and into ireland where apple has negotiated a special corporate tax rate of less than 2%. or about $10 billion in tax avoid dance per year. understanding the opices of these numbers, tim cook had come prepared. >> we pay all the taxes we owe every single dollar. we not only comply with the law. cook's testimony continued. not only did he win praise from the senators, some of whom proudly referenced their own iphones as proof of their mac kred. b

week, apple ceo tim cook was called before congress to testify about the company's overseas tax practices. curtis dubay of the heritage foundation is with us now to discuss the hearing. thet, explain to us what leaders of the senate permit affairs committee were so upset about in the hearing. it turns out it has nothing to do with its u.s. practices. they pay their taxes. they cut a deal with the irish government cannot pay taxes on income it turns and shifts to ireland. ireland had the lowest corporate tax rate in the developed world. even without low rate, they cut a special deal with>> and they d avoided income earned overseas, not earned in the u.s., but over fraud -- but abroad. that they put the money apple paid little or no taxes at around $7.4 billion? how did they do it? how were they able to avoid paying taxes on that? guest: it was a deal they cut with the irish government. this year should have taken place in the irish parliament or in other european countries because they are the one being treated -- cheated out of taxes. this is income earned on apple devices sold to foreign customers. people in the u.k., other european countries. to the appleown store here in george

apple. we did not drag them in front of this subcommittee. they have come here willingly to explain their system and we intend to hear from them the system they use and we will hear from some experts. >> all of that hearing later in our program schedule. online at c-span. the flag at half staff as ordered earlier by house and senate leadership. you can see our coverage of the news conference from oklahoma city and the president's comments this morning also on c-span.org. at mitch mcconnell will not try to block immigration efforts despite complaints from some conservative leaders. judiciary committee has been marking up legislation. the immigration and border security bill. we'll take you live now. hey have been going since 9:30 this morning. >> don't light it -- >> i know. and then we'll have to all leave. that's a nice thought. >> senator durbin. >> thank you, mr. chairman, and happy birthday, al. this issue has been important to me for a long time. i have made it clear during the course of the hearing what i think about immigration. and i acknowledge that there are opportunities

explain this, though. on one song you have the government saying they have created this stateless, almost homeless subsidiary if you will that's collecting no tax. on the other side appler tax liability and we have been paying it anyway. who do you think is right? and are both sides overplaying their hands? >> i would have to be a more highly paid tax lawyer to decide who is right. they are saying this does not reduce their u.s. tax liability because it's an off-shore entity. therefore the existence doesn't reduce u.s. taxes. but having it in ireland and not as a registered tax resident in ireland what it may be doing is reducing their irish tax liability. >> there are profits being made outside the united states. >> that's right. >> so we shouldn't care if we're not paying spain. although spain could use it. tough day for apple. i don't know why it's not a tough day for washington. if it's legal, this is what a company is supposed to do. should be a tough day for washington because they can't get their act together and try to figure out,000 reform the tax code or do something with territori territorial. >> this is a bizarre entity that doesn't exist. >> if it's illega

apple. we did not drag them in front of us that committee. they have come here willingly to explain their system. we intend to hear from them. we will also hear from some experts. hearts treasury jack lew says he has directed the new irs acting commissioner to conduct a thorough review of the irs targeting of conservative groups. his comments came during the senate banking committee hearing on an summit the dodd- frank regulations law and the findings of the financial ability oversight council's annual report. this is an hour and 40 minutes. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2013] good morning. i will call this hearing to order. i'd like to start by sending my thoughts and prayers are with .he families of moore, oklahoma it is a difficult time as families mourn the loss of loved ones and begin rebuilding their community. today we welcome secretary jack lew to the committee for the first time since he was confirmed. while this committee lacks jurisdiction over the irs, i am expressing myy sincere disappointment

can you explain the disparity atco >> sure. , apple's macintosh a larger percentage of sales in the u.s. and internationally. , ite launched the iphone became a larger percentage of our international business and it did a part of our u.s. business. we have this base of macintosh sales in the u.s. the iphone has higher gross margins than our macintosh business. it is logical that the international business would carry higher margins generally and our domestic. a morecally, you have profitable product mix internationally. does. >> i was talking about the beneficiaries are of your very good tax rates overseas. i would point out, if we ever do and incentivize companies to bring some of that money back home, the way current tax law is written, you get a deduction for foreign taxes paid, correct? >> that is correct. it is actually a credit, dollar for dollar credit that you pay on foreign taxes. >> as a result, apple has a lot more money than when you repatriated. the u.s. government would be a net fishery if we ever get our tax house in order. >> to the extent of repatriation, yes, that woul