Fishermen pay price in Asia's volatile sea rifts

MASINLOC, Philippines (AP) ? Along the northwestern Philippine coast, poor children with claw hammers clamber aboard an abandoned fishing vessel to pry loose and steal rusty nails from its deck. It's become a familiar sight in villages where some fishermen have been forced to give up their livelihoods since China took control of their fishing haven last year.

Fishermen say Chinese maritime surveillance ships have shooed them from Scarborough Shoal in the South China Sea and roped off the entrance to the vast lagoon that had been their fishing paradise for decades. Now, they say, they can't even count on the Chinese to give them shelter there from a potentially deadly storm.

Some have paddled back in canoes to sneak into the lagoon ? teeming with pricey yellowfin and skipjack tuna, red grouper, blue marlin and lobster ? while their mother boats hide from a distance.

But other Filipino fishermen in the northwestern towns of Masinloc and Infanta have sold their boats, or simply abandoned them on the coast, and turned to other work, including raising pigs in their backyards.

Fish trader Joey Legazpi has sold most of his 12 outrigger boats, which largely depended on Scarborough's pristine fishing waters, and opened a small food store in Infanta, in Pangasinan province.

"It's gone," Legazpi said, noting that the Philippines' ill-equipped forces are no match for China's mammoth military. "We've lost hope we can get Scarborough back."

Large swarms of fishing fleets are getting entangled in an expanding labyrinth of Asian territorial conflicts. The stakes are rising as China and other rival claimants in the South China Sea pour more air, naval and paramilitary forces into the area, increasing the risk of confrontations.

Chinese maritime surveillance ships took control of Scarborough, which Beijing calls Huangyan Island, and roped off the entrance to its vast fishing lagoon following a two-month standoff with Philippine government ships last year. The chain of reefs and rocks 230 kilometers (143 miles) west of the northwestern Philippine province of Zambales falls under its 200-nautical mile (370-kilometer) exclusive economic zone, Filipino officials say.

The area lies about 870 kilometers (542 miles) from China's nearest coast. Some other South China Sea islands claimed by China are much closer than that, but those are also claimed by other countries, including Taiwan and Vietnam.

Many other areas of the sea are volatile. Vietnam lodged a protest in March after claiming its fishermen were fired upon by a Chinese ship, damaging their boat.

Two weeks ago, Filipino coast guard personnel killed a Taiwanese fisherman in a confrontation with a fishing vessel. Manila has apologized but Taiwan has retaliated by freezing jobs for Filipinos, recalling its envoy and cutting trade exchanges.

Ian Storey, senior fellow at the Institute of Southeast Asian Studies in Singapore, said rival claimants have hardened their positions and tried to bolster their sovereignty claims through national legislation or before the United Nations. Beijing, which has aggressively asserted claims to virtually the entire South China Sea and separately to a string of East China Sea islands it contests with Japan, has turned to administrative acts and chased away fishermen it accuses of intrusion.

"The prospect of a resolution to the various disputes in the South China Sea is very dim," Storey said.

Filipino fishermen in Masinloc and Infanta who have journeyed to Scarborough for years told The Associated Press that Chinese surveillance ships have driven them away and pursued them in dangerous cat-and-mouse chases.

"Our fishermen have become scared," said Mayor Desiree Edora of Masinloc, a fishing town in Zambales province, which claims jurisdiction over the shoal. "What power do they have? The other side has (defense) equipment and what do the fishermen have? ? only Styrofoam, ice and so forth ? so what they did was to leave to save their lives."

Alarmed by the recent territorial tensions, Southeast Asian countries have sought a legally binding code of conduct with China to discourage belligerent behavior and prevent fighting. But Beijing has not clearly said so far when it would sit down to discuss the proposal.

Joynes Pursines, skipper of the Queen Kim Urich, said that he and his men were chased away from Scarborough Shoal three times late last year. At one point, his outrigger boat was hemmed in by two ships, their deafening horn blowing repeatedly close by and the Chinese waving red flags.

"We thought they'd ram us," he said. The Chinese ships chased him for about 3 nautical miles (5.5 kilometers) and backed away when Pursines' ship was about 10 nautical miles (18 kilometers) from the shoal.

Legazpi said the dispute over the shoal put the lives of their fishermen at risk when fierce monsoon wind threatened to lash their boats late last year. They could not enter the shallow, calm waters of Scarborough's 130 square-kilometer (80 square-mile) lagoon, because Chinese surveillance ships stood guard nearby.

"How can they do that when it's the law of the sea that people in distress should be helped?" Legazpi asked.

"My men just returned home and cut short their fishing trip. Nobody wanted to go missing at sea because there won't be any death certificate and their families wouldn't get any benefit."

He said seven of his fishermen disappeared when a storm hit the shoal in 2005.

The Associated Press sought comment on the fishermen's claims from the Chinese Foreign Ministry in Beijing but it did not reply. Philippine officials have protested China's blockade of the lagoon.

Macario Forones, a fish trader in Masinloc, is now among those who are raising pigs to make ends meet.

"I used to have up to 60 fishermen working with me. Now all of them are gone," he said. He sent canoes into the shoal for a time, but stopped after the Chinese moved their ships to discourage such efforts.

But Forones is not giving up. He had his outrigger boat reinforced, hoping he will soon be able to send it back to the shoal.

His boat stood brightly with a new coat of white and orange paint on Masinloc's coast as a nearby abandoned vessel rotted under the sun.

___

Associated Press writers Hrvoje Hranjski in Manila and Louise Watt in Beijing contributed to this report.

Source: http://news.yahoo.com/fishermen-pay-price-asias-volatile-sea-rifts-071908894.html

aspergers Richard Engel Daniel Inouye steelers scarlett johansson peter frampton Sandy Hook Elementary School Colors

Mexico cartel dominates, torches western state

In this May 20, 2013 photo, a masked and armed man belonging to a local self-defense group stands guard in the town of Cuemalco, Mexico. Self-defense groups started to spring up in February to fight back the Knights Templar drug cartel which is extorting protection payments from cattlemen and lime growers, butchers and even marijuana growers. The federal government sees both the self-defense forces and the cartel as dangerous enemies. (AP Photo/Marco Ugarte)

In this May 20, 2013 photo, a masked and armed man belonging to a local self-defense group stands guard in the town of Cuemalco, Mexico. Self-defense groups started to spring up in February to fight back the Knights Templar drug cartel which is extorting protection payments from cattlemen and lime growers, butchers and even marijuana growers. The federal government sees both the self-defense forces and the cartel as dangerous enemies. (AP Photo/Marco Ugarte)

In this May 20, 2013 photo, a masked man belonging to a local self-defense group sits with his weapon as he guards the town of Cuemalco, Mexico. Self-defense groups started to spring up in February to fight back the Knights Templar drug cartel which is extorting protection payments from cattlemen and lime growers, butchers and even marijuana growers. The federal government sees both the self-defense forces and the cartel as dangerous enemies. (AP Photo/Marco Ugarte)

In this May 20, 2013 photo, armed men belonging to a local self-defense group patrol the entrance to the town of Buenavista, Mexico. Self-defense groups started to spring up in February to fight back the Knights Templar drug cartel which is extorting protection payments from cattlemen and lime growers, butchers and even marijuana growers. The federal government sees both the self-defense forces and the cartel as dangerous enemies. (AP Photo/Marco Ugarte)

In this May 20, 2013 photo, a masked youth stands guard at the entrance of the town of Buenavista, Mexico. Self-defense groups started to spring up in February to fight back the Knights Templar drug cartel which is extorting protection payments from cattlemen and lime growers, butchers and even marijuana growers. The federal government sees both the self-defense forces and the cartel as dangerous enemies. (AP Photo/Marco Ugarte)

In this May 20, 2013 photo, a man on a motorcycle drives past the burnt-out hulks of two trucks and a passenger bus, allegedly torched by the Knights Templar drug cartel as a warning to anyone who tries to bring reinforcements, near the town of Buenavista, Mexico. A drug cartel that takes its name from an ancient monastic order has set fire to lumber yards, packing plants and passenger buses in a medieval-like reign of terror. (AP Photo/Marco Ugarte)

LA RUANA, Mexico (AP) ? Michoacan is burning. A drug cartel that takes its name from an ancient monastic order has set fire to lumber yards, packing plants and passenger buses in a medieval-like reign of terror.

The Knights Templar cartel is extorting protection payments from cattlemen, lime growers and businesses such as butchers, prompting a backlash in the western agricultural state, where some communities are fighting back, taking up arms in vigilante patrols.

Lime picker Alejandro Ayala chose to seek help from the law instead. After the cartel forced him out of work by shutting down fruit warehouses, he and several dozen co-workers, escorted by Federal Police, met on April 10 with then-state Interior Secretary Jesus Reyna, now the acting governor.

The 41-year-old father of two only wanted to get back to work, said his wife, Martha Elena Murguia Morales.

But, as often, the cartel responded before the government did.

On the way back, his convoy was ambushed, twice. Ayala and nine others were killed.

"I called him after the first one, and he said, 'They shot at us, but I'm OK,'" Murguia Morales said. "Then I called him again, and he didn't answer."

Help finally arrived Sunday when thousands of soldiers rolled in to restore order. The government of President Enrique Pena Nieto says troops will stay in Michoacan until every citizen lives in peace. But the offensive, headed by Secretary of Defense Salvador Cienfuegos, looks a lot like failed operations launched previously by former President Felipe Calderon, who started his first assault on organized crime in Michoacan shortly after taking office in late 2006.

Calderon was trying to stop drug cartels from morphing into mafias controlling all segments of society. But that's exactly what has happened, as they maintain country roads, control the local economy and mete out justice for common crimes.

In the Tierra Caliente, a remote agricultural region, fire has been a favored weapon of the cartel. On the highway between Coalcoman and La Ruana, the ruins of three sawmills torched by the cartel still smoldered this week.

The owners reportedly had failed to pay protection fees of 120 pesos (about $10) for every cubic meter of wood they sold, the equivalent of about 10 cents for every two-by-four board.

The Knights Templar also demands that avocado growers pay 2,000 pesos (about $160) per hectare of trees. Avocado warehouses were set afire this month by armed men.

The heart of a conflict where a mafia openly rules and the government is largely absent is nowhere more evident than in the lime groves that cover the hot, hilly plains, miles and miles of trees with the fruit yellowing and falling into uncollected heaps on the ground.

Mexico is the world's largest producer of limes, according to the U.S. Department of Agriculture, more than 2 million tons in 2012. Much of its exports go to the United States, and Michoacan contributes a large share of that: nearly 475,000 tons of the fruit last year, half from the Tierra Caliente.

It sometimes seems like everything in Mexico, from tacos to potato chips to beer, gets a squeeze of lime.

By late last year, the cartel wasn't just extorting money from lime growers and packers. It had started charging per-box payments from lime pickers, who make only $10 to $15 per day laboring under the scorching sun.

With officials doing nothing to help, self-defense groups started to spring up in February to fight back. Heavily armed men in masks and baseball caps began manning barricades along highways and patrolling the countryside, sometimes openly battling the cartel. Last month

Then the cartel shut the warehouses, forbidding brokers to buy limes and cutting off work for the pickers who had revolted.

Straw-hatted fruit broker Carlos Torres Chavez watched on Tuesday as thousands of fresh green limes poured down the chutes from his plant's giant hoppers into a 37-ton truck for shipment to a processing mill. It was his first day open in two months, thanks to the arrival of the army.

Torres Chavez sells to mills that make lime oil. He usually gets yellow, overripe, second-rate fruit.

But because of the growers' desperation to make money, they were selling him fresh green limes for a peso per kilogram (8 cents per pound), a third of what the fruit is normally worth.

"This is a waste. These are good limes, they can be eaten. They shouldn't be going to the mill," said Domingo Mora, 54, as he picked up one of the limes sifting through the hoppers.

Mora's 24-year-old son, Daniel Mora Torres, was arrested in March along with 50 other young men from the La Ruana self-defense force and was sent to a prison in northern Mexico.

Authorities accused them of carrying banned assault rifles, and said some had links to a rival cartel, Jalisco Nueva Generation, which they deny. The federal government sees both the self-defense forces and the cartel as dangerous enemies.

Mora says his son is just a lime picker who couldn't work to feed his family after the Knights Templar banned the lime sales.

Meanwhile, in Mexico City, the federal government recently declared a lime emergency because prices had doubled to about 70 cents a pound (18 pesos per kilogram). For a fruit so central to Mexican cuisine, it was a crisis.

The government announced last week it would tackle the shortage by importing limes from Brazil. The government attributed the local scarcity to crop pests and "seasonal fluctuations" in production.

Sergio Ramirez, president of a lime trade group called Sistema Producto Limon, insisted there is no shortage and blamed the high prices on greedy fruit dealers and government bungling. His explanation doesn't play in the Tierra Caliente.

"Isn't it ironic, Mexico is going to import limes from Brazil, because there isn't enough supply?" asked a rancher wearing a baseball cap and leaning back into his chair at the headquarters of the local self-defense group in Tepalcatepec. "Here, the limes are falling to the ground, because the lords of the Knights Templar won't let them be sold."

The rancher, who like most of the vigilantes won't give his name for fear of reprisal, knows the price of living under the rule of the gang. They used to demand 800 to 1,000 pesos (up to $80) in protection money for each head of cattle he owned, about equal to any profit he would make from selling them.

The Mexican army was met with cheers when it arrived in La Ruana on Monday night. Federal Interior Secretary Miguel Osorio Chong promised that the offensive this time would have better coordination, cooperation and intelligence to be successful.

But federal forces up against a deeply rooted local mafia that, with at least a decade of state and local government tolerance, exerts almost governmental power.

The last time the federal government truly went after the cartel, then known as La Familia, was in 2010. Federal Police killed leader Nazario Moreno Gonzalez in a gunbattle and firefights followed for weeks in dozens of spots. La Familia's leadership fell apart, but one branch of the cartel evolved into the Knights Templar, which has consolidated control.

The cartel now operates relatively openly. A man resembling its leader, Servando "La Tuta" Gomez Martinez, recently appeared on YouTube, calling on the federal government to do its job and saying the vigilantes were men sent by rival cartels from outside of Michoacan.

He has regularly sent messages depicting the Knights Templar as home-grown Robin Hoods who take from the rich, give to the poor and defend the state against other gangs.

The cartel even built public, roadside chapels to its fallen leader, "St. Nazario," which some of the vigilantes destroyed.

And it can draw crowds of supporters, either by threat, persuasion or payment, in cities such as Apatzingan, where hundreds of people have rallied to condemn the self-defense squads.

Many of the vigilante squads disappeared this week with the arrival of the army, though they vow to take up arms again as soon as the soldiers leave. But the patrols continued in the town of Buenavista, where one self-defense guard, a square-jawed young lime picker in a straw hat, carried a 16-gauge shotgun at a checkpoint. He described the cartel this way:

"It's like a monster with a thousand arms, that wants to control everything, the way you live, the way you think," said the young patrolman. "You cut off one arm, it grows another."

___

Associated Press writer E. Eduardo Castillo in Mexico City contributed to this report.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2013-05-22-Drug%20War-Mexico/id-e1fe9df034a14c77a9bb87bd20170170

Marcus Lattimore lakers Tyrann Mathieu nfl draft grades Jon Jones Broken Toe matt barkley russell westbrook

Collaborative Gastronomy? Cookening Lets Tourists Dine In A Local's Own Home

Launching today is Cookening, a new French startup co-founded by C?dric Giorgi (previously co-editor of TechCrunch France) that combines elements of both Airbnb and Housebites. Starting with France first, a country known for its gastronomy, it enables locals to be matched with tourists so they can invite them into their homes to experience an authentic home dining experience.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/CYBbW_rKhew/

Rebecca Soni Snoop Lion London 2012 Table Tennis badminton Dominique Dawes Gabby Olympic Gymnast Robyn Lawley

UK wine retailer First Quench in $242 million pension risk deal

By Sarah Mortimer

LONDON (Reuters) - British alcoholic drinks retailer First Quench is insuring a chunk of its pension liabilities with specialist provider Pension Insurance Corporation, improving retirement benefits for its 1,966 members.

A growing number of "final salary" pension schemes are running into trouble because of rising longevity and low UK government bond yields.

Insurers and reinsurers are capitalizing on increased demand from pension funds for ways to manage their liabilities by underwriting individual pension funds and charging a fee.

Pension Insurance Corp said on Wednesday it would assume responsibility for managing some of the of pension liabilities held by the trustees of the First Quench fund - amounting to 160 million pounds ($242.26 million).

Unable to pay the final-salary linked pensions of its members, First Quench - which operates the Threshers and Wine Rack brands - relinquished its debt to the Britain's Pension Protection Fund (PPF), in October 2009.

The PPF was launched in 2005 to take over the assets and liabilities of UK-based defined benefit pension schemes if an employer goes bust. It currently has around 15 billion pounds of assets under management, which it expects to rise to over 21 billion pounds in 2016.

The PPF caps the amount it pays out to members of insolvent schemes but Chris Martin, managing director of Independent Trustee Services Limited, said First Quench members should receive more money than if they stayed in the PPF scheme.

($1 = 0.6604 British pounds)

(Reporting by Sarah Mortimer; Editing by Louise Heavens)

Source: http://news.yahoo.com/uk-wine-retailer-first-quench-242-million-pension-113326388.html

Human Rights Campaign bioshock infinite smokey robinson smokey robinson USA VS Mexico Alexis DeJoria Marshall Henderson

Andy Murray out of French Open due to back injury

El tenista esoc?s Andy Murray gesticula en un partido contra Tomas Berdych en el Masters de Madrid el viernes, 10 de mayo de 2013. (AP Photo/Daniel Ochoa de Olza)

El tenista esoc?s Andy Murray gesticula en un partido contra Tomas Berdych en el Masters de Madrid el viernes, 10 de mayo de 2013. (AP Photo/Daniel Ochoa de Olza)

Britain's Andy Murray wipes his face during a pause of a match with Spain's Marcel Granollers during their match at the Italian Open tennis tournament in Rome, Wednesday, May 15, 2013. Murray has retired from his second-round match with Marcel Granollers in the second round of the Italian Open. (AP Photo/Andrew Medichini)

Britain's Andy Murray receives medical care during his match with Spain's Marcel Granollers, at the Italian Open tennis tournament in Rome, Wednesday, May 15, 2013. Murray has retired from his second-round match with Marcel Granollers in the second round of the Italian Open. (AP Photo/Andrew Medichini)

LONDON (AP) ? Andy Murray withdrew from the French Open on Tuesday because of a chronic back injury and will now focus on preparing for the start of the grass-court season next month.

The U.S. Open champion met with specialists this week after being forced to pull out of his second-match against Marcel Granollers of Spain at the Italian Open last Wednesday because of the long-standing complaint.

"It's a really tough decision and I love playing in Paris, but after seeking medical advice I am not fit to compete," Murray said in a statement. "Apologies to the organizers and thanks to everyone for the messages of support. Now my complete focus is on getting back on the court as soon as possible."

The French Open, the second Grand Slam tournament of the year, starts Sunday.

Last week in Rome, Murray took a long injury break early in the second set against Granollers, getting his left thigh and lower back massaged.

He seemed pessimistic about his chances of playing in the French Open, the only major in which he hasn't reached the final.

"I have an issue with my lower back. It's been an issue for a while," Murray said then. "I want to make sure it goes away. It's been a problem since the end of 2011 but it got bad during last year's clay season.

"I would be very surprised if I was playing in Paris."

Murray reached the quarterfinals at the French Open last year, falling to David Ferrer, before going on to lose his first Wimbledon final to Roger Federer. He avenged that defeat against the Swiss star to win Olympic gold, and downed Novak Djovokic at the U.S. Open for his first Grand Slam title later in 2012.

Wimbledon runs from June 24 to July 7 this year.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/347875155d53465d95cec892aeb06419/Article_2013-05-21-TEN-French-Open-Murray-Out/id-f7185ce02d2f4974a882267f4621cf3d

dallas cowboys Jarvis Jones minnesota vikings Eric Reid Kyle Long UFC 159 aaron rodgers

Apple case seen as possible spur to tax action

Apple CEO Tim Cook testifies on Capitol Hill in Washington, Tuesday, May 21, 2013, before the Senate Homeland Security and Governmental Affairs Permanent subcommittee on Investigations as lawmakers examine the methods employed by multinational corporations to shift profits offshore and how such activities are affected by the Internal Revenue Code. Lawmakers want to know the tax strategy of how Apple, the world's most valuable company, based in Cupertino, Calif., holds a billion dollars in an Irish subsidiary as a tax strategy, according to a report issued this week by the subcommittee. (AP Photo/J. Scott Applewhite)

Apple CEO Tim Cook testifies on Capitol Hill in Washington, Tuesday, May 21, 2013, before the Senate Homeland Security and Governmental Affairs Permanent subcommittee on Investigations as lawmakers examine the methods employed by multinational corporations to shift profits offshore and how such activities are affected by the Internal Revenue Code. Lawmakers want to know the tax strategy of how Apple, the world's most valuable company, based in Cupertino, Calif., holds a billion dollars in an Irish subsidiary as a tax strategy, according to a report issued this week by the subcommittee. (AP Photo/J. Scott Applewhite)

Apple CEO Tim Cook testifies on Capitol Hill in Washington, Tuesday, May 21, 2013, before the Senate Homeland Security and Governmental Affairs Permanent subcommittee on Investigations as lawmakers examine the methods employed by multinational corporations to shift profits offshore and how such activities are affected by the Internal Revenue Code. Lawmakers want to know the tax strategy of how Apple, the world's most valuable company, based in Cupertino, Calif., holds a billion dollars in an Irish subsidiary as a tax strategy, according to a report issued this week by the subcommittee. (AP Photo/J. Scott Applewhite)

Senate Homeland Security and Governmental Affairs Permanent subcommittee on Investigations Chairman Sen. Carl Levin, D-Mich., holds up his own Apple iPhone, on Capitol Hill in Washington, Tuesday, May 21, 2013, as he presses Apple CEO Tim Cook, left, for answers about how Apple, the world's most valuable company, and based in Cupertino, Calif., diverts a billion dollars to an Irish subsidiary as a tax strategy, according to a report issued this week by the subcommittee. (AP Photo/J. Scott Applewhite)

Apple CEO Tim Cook, center, is surrounded by aides as finishes his appearance on Capitol Hill in Washington, Tuesday, May 21, 2013, before the Senate Homeland Security and Governmental Affairs Permanent subcommittee on Investigations as the panel examined the methods employed by multinational corporations to shift profits offshore and how such activities are affected by the Internal Revenue Code. Lawmakers pressed Cook to learn more about Apple's tax strategies in keeping a billion dollars in an Irish subsidiary, according to a report issued this week by the subcommittee. (AP Photo/J. Scott Applewhite)

Senate Homeland Security and Governmental Affairs Permanent subcommittee on Investigations Chairman Sen. Carl Levin, D-Mich., holds up his own Apple iPhone, on Capitol Hill in Washington, Tuesday, May 21, 2013, as he presses Apple CEO Tim Cook for answers about how Apple, the world's most valuable company, and based in Cupertino, Calif., diverts a billion dollars to an Irish subsidiary as a tax strategy, according to a report issued this week by the subcommittee. (AP Photo/J. Scott Applewhite)

WASHINGTON (AP) ? Now that tech darling Apple Inc. has been dragged front and center into the debate over the U.S. tax code, lawmakers are hoping that the spotlight on such a high-profile company could be the catalyst for Congress to take action to close loopholes or reform the law.

At a hearing Tuesday, members of the Senate Permanent Subcommittee on Investigations grilled Apple CEO Tim Cook over allegations that the company's Irish subsidiaries help it avoid billions in U.S. taxes. It was a moment of high drama, a CEO of the world's most valuable company testifying before Congress for the first time ever. Cook did so voluntarily. And he parried the volley of questions from senators, insisting that the company's overseas operations have nothing to do with reducing Apple's U.S. taxes.

"We pay all the taxes we owe ? every single dollar," Cook said. "We don't depend on tax gimmicks."

The subcommittee released a report Monday that held up Apple as an example of the legal tax avoidance made possible by the U.S. tax code. Apple paid $6 billion in taxes last year. But the subcommittee estimates that Apple avoided at least $3.5 billion in U.S. federal taxes in 2011 and $9 billion in 2012 by using its tax strategy, and described a complex setup involving Irish subsidiaries as being a key factor.

The result, said Sen. John McCain: "Apple has over $100 billion, more than two-thirds of its total profits, stashed away in an offshore account."

The focus on Apple's taxes comes at a time of heated debate in Washington over whether and how to raise revenues to help reduce the federal deficit. Many Democrats complain that the government is missing out on billions of dollars because companies are stashing profits abroad and avoiding taxes. Republicans want to cut the corporate tax rate of 35 percent and ease the tax burden on money that U.S. companies make abroad. They say the move would encourage companies to invest at home and thus spur the economy and job market.

"America's tax system is broken and uncompetitive," said McCain, the subcommittee's senior Republican. "The egregious loopholes that exist in the tax code must be closed so that the nearly $1 trillion in untaxed overseas profits can come back to the United States."

Apple's enormous, iPhone-fueled profits mean that it has more cash stashed overseas than any other company: $102 billion. And Cook reaffirmed Apple's position that it has no intention of bringing that cash back to the U.S. at the current tax rate. Like other companies, it has a responsibility to shareholders to pay as little as possible in taxes. In effect, Apple is holding out for a lower corporate tax rate, and Cook spent some of his time in the spotlight to advocate for one, as well as a streamlining of the tax code to eliminate deductions and credits.

Cook, who is more accustomed to commanding a stage in front of investors and techies than facing a congressional committee, took a defensive tone with his opening statement. He punched out words when stressing the 600,000 jobs that the company supports, and underscored that Apple is the nation's largest corporate taxpayer.

Even if additional tens of billions from Apple began flowing into the U.S. Treasury, the money would barely put a dent in the $642 billion federal budget deficit. But Apple as a symbol resonates with politicians, especially Democrats, seeking to make the case that a powerful corporation shouldn't be excused from its fair share of taxes. The public dissection of Apple hopefully will spur Congress to action to fix the tax code, McCain urged. The sentiment was widely shared among subcommittee members, in a bipartisan show. McCain and Sen. Carl Levin, D-Mich., the panel's chairman, are proposing legislation to do so.

At the same time, lawmakers must tread lightly as they attack Apple, a company held in high esteem and whose ubiquitous products are seen as both innovative and indispensable.

"I love Apple," declared panel member Sen. Claire McCaskill, D-Mo., during the hearing, confiding that she had "converted" her husband to the MacBook. And McCain took a break from grilling Cook on tax questions to ask him, "Why the hell do I have to keep updating the apps on my iPhone all the time?"

Senators on the panel say Apple's situation illustrates their belief that the U.S. tax system is in dire need of repair. The U.S. tax code contains provisions designed to force companies that sell their products overseas to pay U.S. taxes on the profits from those sales. But certain loopholes allow companies to legally bypass those provisions. Sen. Levin contends that Apple's use of such loopholes is unique among multinational corporations.

Apple uses five companies located in Ireland to carry out its tax strategy, according to the Congressional report. The companies are located at the same address in Cork, Ireland, and their boards of directors share members. While all five companies were incorporated in Ireland, only two of them also have tax residency in that country. That means the other three aren't legally required to pay taxes in Ireland because they aren't managed or controlled in that country, in Apple's view.

The report says Apple capitalizes on a difference between U.S. and Irish rules regarding tax residency. In Ireland, a company must be managed and controlled in the country to be a tax resident. Under U.S. law, a company is a tax resident of the country in which it was established. Therefore, the Apple companies aren't tax residents of Ireland or the U.S., since they weren't incorporated in the U.S., in Apple's view.

"Apple is exploiting an absurdity," Levin said. He also called Ireland a "tax haven," an appellation Irish Prime Minister Enda Kenny rejected when speaking in parliament in Dublin on Tuesday.

"We are not a tax haven. American investors quite understand that. Our (taxation system) is statutory-based and clear and transparent and effective right across the board," Kenny said. He also denied the assertion in the subcommittee's report that Apple had negotiated an Irish corporate tax rate of less than 2 percent. All companies pay the standard rate of 12.5 percent on profits from Irish operations, the prime minister said.

Thanks largely to the iPhone, Apple is one of the world's most profitable companies. It earned $41.7 billion in calendar year 2012. It's neck and neck with Exxon Mobil Corp. as the world's most valuable company. However, Apple's Irish subsidiaries date back thirty years, to the time when the Macintosh computer was Apple's banner product, and its profits were a fraction of 1 percent of today's figure. Cook told the panel that those Irish subsidiaries don't reduce the company's U.S. taxes at all. The company avoids paying the 35 percent federal tax rate on profits made overseas by just not bringing those profits back to the U.S., a practice it shares with other multinationals.

Apple has shifted intellectual property rights, like patents, to the Irish subsidiaries, which means other divisions of Apple pay royalties to those subsidiaries for their sales. Those intellectual property rights, like patents, are Apple's "golden goose," Levin said. Apple executives countered that the main U.S.-based company has kept the rights for North and South America, so only royalties for overseas sales flow to the Irish subsidiaries. Also, the Irish companies pay for some of the research and development costs incurred at Apple's headquarters in Cupertino, Calif.

"What Apple is doing is pretty mainstream," said accounting expert Robert Willens, in an interview. Shifting around the intellectual property rights has a minor effect compared to the simple avoidance of U.S. taxes by not repatriating profits, he said.

The subcommittee also has examined the tax strategies of Microsoft Corp., Hewlett-Packard Co. and other multinational companies, finding that they too have avoided billions in U.S. taxes by shifting profits offshore and exploiting weak, ambiguous sections of the tax code. Microsoft has used "aggressive" transactions to shift assets to subsidiaries in Puerto Rico, Ireland and Singapore, in part to avoid taxes. HP has used complex offshore loan transactions worth billions while using the money to run its U.S. operations, according to the panel.

White House spokesman Jay Carney said the issue highlighted by the Senate panel's report, unfairness in the U.S. tax code, is one of longstanding concern to President Barack Obama. Carney said Obama has long favored proposals "to ensure that American companies cannot use off-shore profit shifting to avoid paying taxes," including a proposal for a minimum tax on foreign earnings.

"This has been a major priority of his because he thinks it is inexplicable that our tax code would actually be written in a way that rewards companies for taking jobs and profits offshore, and thereby penalizes companies for doing what we want them to do, which is create jobs and opportunity here in the United States," Carney said Tuesday.

Apple's stock fell $3.27, or less than one percent, to close at $439.66 in Tuesday's trading.

__

Svensson reported from New York. Associated Press writers Shawn Pogatchnik in Dublin and Darlene Superville in Washington contributed to this report.

Associated Press

Source: http://hosted2.ap.org/apdefault/89ae8247abe8493fae24405546e9a1aa/Article_2013-05-22-Apple-Untaxed%20Profits/id-e9367e5eb7364a9d9a8a07a1611439df

lindzi cox bachelor finale courtney robertson ben flajnik hunger games premiere red meat bachelor ben

China Factory Explosion: Blast Kills 5 At Plant; 20 Missing

Bangladeshi garment workers set fire to furniture from a police control room during a protest against the collapse of an eight-story building that housed several garment factories and poor working conditions of the employees, in Dhaka, Bangladesh, Saturday, April 27, 2013. Police in Bangladesh took into custody five people in connection with the collapse of a shoddily-constructed building that collapsed this week, as rescue workers pulled out 19 survivors out of the rubble on Saturday and vowed to continue as long as necessary to find others despite fading hopes. (AP Photo/A.M. Ahad)

Bangladeshi policemen walk after chasing garment workers protesting against the collapse of an eight-story building that housed several garment factories and their employees, in Dhaka, Bangladesh, Saturday, April 27, 2013. Police in Bangladesh took into custody five people in connection with the collapse of a shoddily-constructed building that collapsed this week, as rescue workers pulled out 19 survivors out of the rubble on Saturday and vowed to continue as long as necessary to find others despite fading hopes. (AP Photo/A.M. Ahad)

A Bangladeshi Muslim rescue worker prays on the rubble of a building that collapsed Wednesday in Savar, near Dhaka, Bangladesh, Saturday, April 27, 2013. Police in Bangladesh arrested two owners of a garment factory in a shoddily-constructed building that collapsed this week, killing at least 324 people, as protests spread to a second city Saturday with hundreds of people throwing stones and setting fire to vehicles. (AP Photo/Kevin Frayer)

A girl cries for her missing mother at the site of the garment building factory that collapsed Wednesday in Savar, near Dhaka, Bangladesh, Saturday, April 27, 2013. Police in Bangladesh took five people into custody in connection with the collapse of a shoddily-constructed building this week, as rescue workers pulled 19 survivors out of the rubble on Saturday and vowed to continue as long as necessary to find others despite fading hopes. (AP Photo/Wong Maye-E)

Women carry portraits of missing relatives at the site of the garment factory building that collapsed Wednesday, in Savar, near Dhaka, Bangladesh, Saturday, April 27, 2013. Police in Bangladesh took five people into custody in connection with the collapse of a shoddily-constructed building this week, as rescue workers pulled 19 survivors out of the rubble on Saturday and vowed to continue as long as necessary to find others despite fading hopes. (AP Photo/Ismail Ferdous)

A man watches while rescue workers search for survivors at a garment factory building that collapsed Wednesday in Savar, near Dhaka, Bangladesh, Saturday, April 27, 2013. Police in Bangladesh took five people into custody in connection with the collapse of a shoddily-constructed building this week, as rescue workers pulled 19 survivors out of the rubble on Saturday and vowed to continue as long as necessary to find others despite fading hopes.(AP Photo/Ismail Ferdous)

A Bangladeshi man holds a picture of a relative missing in a building that collapsed Wednesday hold pictures of loved ones at a makeshift morgue in a schoolyard in Savar, near Dhaka, Bangladesh, Saturday, April 27, 2013. Police in Bangladesh arrested two owners of a garment factory in a shoddily-constructed building that collapsed this week, killing at least 324 people, as protests spread to a second city Saturday with hundreds of people throwing stones and setting fire to vehicles. (AP Photo/Kevin Frayer)

A Bangladeshi rescue worker directs others as they search in the rubble of a building that collapsed Wednesday in Savar, near Dhaka, Bangladesh, Saturday, April 27, 2013. Police in Bangladesh arrested two owners of a garment factory in a shoddily-constructed building that collapsed this week, killing at least 324 people, as protests spread to a second city Saturday with hundreds of people throwing stones and setting fire to vehicles. (AP Photo/Kevin Frayer)

Relatives mourn a victim at the site where an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. The building collapsed near Bangladesh's capital Wednesday morning, killing dozens of people and trapping many more in the rubble, officials said. (AP Photo/ A.M. Ahad)

People and rescuers gather after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

People and rescuers gather after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Rescuers assist an injured woman after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Rescue workers carry a victim's body after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Rescue workers look for survivors after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

A man who was trapped in an collapsed eight-story building housing several garment factories is reccued in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Rescue workers pull a woman out from the rubbles after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Rescue workers and people look for survivors after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Relatives mourn a victim at the site after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Rescuers carry a woman after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Rescue workers carry a young victim's body after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. Dozens were killed and many more are feared trapped in the rubble. (AP Photo/ A.M. Ahad)

Rescue workers use pieces of clothes to bring down a survivor after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. The building collapsed near Bangladesh's capital Wednesday morning, killing dozens of people and trapping many more in the rubble, officials said. (AP Photo/ A.M. Ahad)

A man who was trapped in an eight-story building housing several garment factories is rescued after the structure collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. The building collapsed near Bangladesh's capital Wednesday morning, killing dozens of people and trapping many more in the rubble, officials said. (AP Photo/ A.M. Ahad)

Rescue workers use clothes to bring down survivors and bodies after an eight-story building housing several garment factories collapsed in Savar, near Dhaka, Bangladesh, Wednesday, April 24, 2013. The building collapsed near Bangladesh's capital Wednesday morning, killing dozens of people and trapping many more in the rubble, officials said. (AP Photo/ A.M. Ahad)

Source: http://www.huffingtonpost.com/2013/05/20/china-factory-explosion_n_3304764.html

sf giants gold rush gold rush windows 8 Emanuel Steward nyc.gov SAT