Apple's Tax Loopholes Make Feds Sour

Jeff Macke analyzes the morning business headlines.
6:04 | 05/21/13

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Transcript for Apple's Tax Loopholes Make Feds Sour
Futures up this morning but just slightly investors are holding back before tomorrow's release of the Fed's meeting -- Right now want to bring in Jack MacKey from Yahoo! finance and break down the top business headlines Wednesday morning Jeff. Good morning John I feel like Ethan -- geared to tell -- -- -- -- back together before midnight asking viewers and exactly right let's start off with apple the tech giant is -- some scorn because let's take advantage of some tax loopholes he tells what's going on here. Right the people who created the tax loopholes -- not -- apple for using the tax loopholes to start putting businesses and places like Ireland where they get slightly better tax treatment -- -- -- here in the states. So -- part of the problem they have how many billions of dollars. In overseas revenue aren't they being accused of not paying taxes and -- -- -- -- here's the things it they're going to make it sound like they're going to accuse apple of not paying their taxes again apple didn't break any laws right -- all over the place apple apple probably has 89 billion dollars domicile overseas you know -- -- This is not new it was I courtesy of the senate quite a bit of money have just asked me about these overseas accounts because I can tell you right now corporate America has about one point five trillion dollars held. Overseas may do that because they don't want to bring it back here because our taxes are so onerous on a corporate level and saying you're going to see today. Is grandstanding by a bunch of morons who wrote about -- -- apple then hired people to works itself out or not pay its taxes. And they're going to castigate Tim Cook for taking advantage of a system they themselves created. So does that mean they're going to change the system do you think because I'm sure this is going to continue to happen as you said. Corporations are not stupid they see these loopholes they're going to continue -- is -- especially about corporations become multi national. Why do they mountain you know abuse of rational level headed calm guy sweeter from America's sweet. But I think you -- -- that. It -- me a little a little upset it raises my -- if you will. Is that we get real chance here with Tim Cook being ahead of of the largest corporation a world arguably in front of senators -- to simplify our tax code to make it makes sense. For corporations to do business in the states not have this little shell game going on overseas. And instead we're gonna do is we're gonna spend the whole day yelling at apple. Indicators such -- -- lost opportunity and when folks at home complain about corporate tax rates. And when they complain about how confusing this system as you know what. It it's not confusing because Apple's taking advantage of Apple's not the enemy here apple is are the people who understand these codes just like the rest of corporate America if you -- -- get those corporations pay higher taxes. Stop congratulating your senators for yelling and apple and -- them to fix the -- So you don't think anything constructive we'll come out of today's Harry -- not right so let's let's look I think this one CEO behind and move -- to another one although. He may not be one for too long JPMorgan is voting on what role CEO and chairman Jamie -- won't play in the future now Dimon has said before. That he will quit if he loses any of his titles -- you have any insight. On how stockholders might vote here. I don't know you know -- -- Jamie I share target which is about how we share icing on -- time. I I have no idea why a guy who makes 25 million a year would threaten to quit if they don't call him certain titles I'll I'll I'll ask him next time about human. But -- you know it it's they're gonna separate the roles of chairman and CEO. And they're making a big deal -- -- shareholders vote. And -- looks like in the early stages that maybe JPMorgan one in the sense that Jamie Dimon gets to continue to have these dual roles. Chairman of the board and CEO of the entire company the distinction is frankly not all -- important. All right let's move on and talk about some things that are important that earnings Home Depot posted some big profits. What does that say about the housing market. It's as good things to its reward -- Morgan happy we're taking it goes on a roll you know -- That's his people are -- this is their Christmas. They've got -- people are planting their gotten their seeds or gotten homes forgotten all kinds of breaks and -- at Home Depot. On divorce rate in the money shares are hired they're beaten expectations -- -- right in the world to sunny days in housing bill. That's so wonderful and another company that posted profits although maybe not quite as exciting best -- because they also that they might be dwindling soon so tell us the story here. Well you know best economic said earnings are going to be great not -- in -- salvage their Home Depot a company and its kind of hit on all cylinders. That would be a bad thing best -- not much hitting on all cylinders they're in a turnaround and so they've given us. The six levels -- six targets that they want to improve over the course of the year. Because they know -- going to be terrible these are things like expenses in a bunch of -- sexy stuff that they have to behind the scenes to make -- best -- here five years from now. In that regard the company made some real progress in terms of actually turning a profit this quarter. No not really minute -- I didn't make a ton monument probably won't for the rest of the year but as an investor I would want to see out of down. A coherent plan against which they can measure results and so far so good welcome -- on that front. Some baby steps there right baby step yet taken steps are sorry Jeff Microsoft is set to unveil its new Xbox today will stockholder be looking for the same thing as gamers here. No it it's the -- -- we're mandated cap and its Crete it will write it what they call the uncanny valley and outerwear that's for sure -- -- So for gamers this is no big deal it's like are you don't mind my my life like Eli Manning looks even like -- but. -- the deal here what you want to see for Microsoft. Is the creation of the cable box is -- creation of something that would allow consumers really have that hub is where -- TV it's -- play the games where I go online. That's been the promise of this entire team project. For Microsoft since the start since 1990 when -- when they came out with the Xbox. So that's where you have to look for not more -- -- or whatever computing power horsepower out of the Xbox. You wanna see -- it's gonna change your life and that's -- investors are looking for. Will it deliver let's say all right Jeff -- Pletcher had been -- -- let's take one more look at the data for -- let -- go up about 46 points this morning sent off to a nice little start. We got -- magic back. It's great to see that's right daycare --

This transcript has been automatically generated and may not be 100% accurate.

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