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Apple store, New York Shutterstock/hans engbers

How much has Ireland's Apple tax appeal cost so far? Over €3.6 million and counting

The government has spent €1.7m on legal fees this year alone.

IRELAND HAS SPENT over €3.6 million on legal costs, consultancy fees and other associated costs to fight the European Commission’s finding that Apple owes the State €13 billion in back taxes.

A briefing note from the Department of Finance reveals that these monies were paid by the Department of Finance, the Revenue Commissioners, the Attorney General and the Chief State Solicitor’s Office to well-known law and accounting firms.

Ireland was found to have given the iPhone maker a selective advantage over a period of more than two decades that allowed it to pay effective tax rates as low as 0.005% on profits from sales in Europe and several other territories.

Appeal case 

The case is focused on two Irish-registered companies, one of which was used as a “head office” despite having no staff and being effectively stateless for tax purposes. Ireland denies the profits assigned to the head office should have been taxed in the Republic.

The government has appealed the ruling.

Details of the payments due, which were racked up between 2013 and 25 August 2017 and seen by TheJournal.ie, show that amounts, some well over €500,000, are being paid out to senior counsel, junior counsel, law firms, tax firms and accountancy firms. Payments have also been made to get technical documents translated.

This time last year, the government was dealing with a crisis over the Apple tax ruling, which forced it to return from summer holidays early in order to debate the issue.

The appeal to the ruling was lodged last year, resulting in Ireland paying some €1,002,124 in fees fighting the case in 2016 alone.

To date, in 2017, the government has paid out €1,775,692 in fees. This is a significant increase from the €182,061 paid out in 2014, and €659,890 paid in 2015.

Yesterday, a report about Ireland’s corporation tax code found there was no preferential tax regime for any one company.

The report, which was carried out by economics lecturer and Irish Fiscal Advisory Council member, Seamus Coffey, was ordered after there were differences in opinions among some independent ministers who sit at the Cabinet table.

While the terms of reference didn’t specifically mention Apple, it looked at Ireland’s tax transparency, and investigated if any one company was given preferential treatment.

“Apple may have provided some of the context to this report but the terms of reference did not pay any particular reference to any particular case and from the work Seamus has done. He concludes that there is no evidence to suggest that Ireland offered any preferential tax treatment to any one company,” Finance Minister Paschal Donohoe said on Tuesday.

Sinn Féin finance spokesperson, Pearse Doherty, told TheJournal.ie that the latest figures show how much potential for runaway costs the Apple case brings with it.

“This is only a sneak preview of what the final bill will look like. €1.75 million this year alone and it’s only September tells us how the final bill will be in the multiples of the €3.6 million already spent.

“Let’s not forget Apple are entitled to mount their own appeal. That is their right but for Ireland, as a State with a housing and health service crisis, to spend millions in aiding them makes no sense,” he said.

He added:

By engaging in this appeal, the government is writing a blank cheque for lawyers and legal companies to try to overturn a Commission decision that Ireland is owed €13 billion plus. It is a completely unjustifiable use of taxpayer’s money.
The gravy train should be stopped now before it costs the Irish people any more millions of money desperately need in other areas.

Read: Ireland spent €440k on a report defending Apple months before the EU’s scathing tax ruling>

Read: Ireland is looking for someone to hold onto the €15 billion from Apple’s tax bill>

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53 Comments
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    Mute Ryan
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    Sep 14th 2017, 12:04 AM

    Hadn’t actually clicked on that idea… basically a fortune is being spent on legal fees not to take money… It’s a great country lads…

    409
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    Mute John Brendan Mullen
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    Sep 14th 2017, 12:47 AM

    @Ryan: we must be the only country in the world who spends taxpayers money to avoid collecting a fortune in unpaid taxes by a foreign private corporation. When will the people of Ireland cop on and rid themselves of these civil war remnant parties and choose for change. ?

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    Mute Kieran W
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    Sep 14th 2017, 1:04 AM

    @Ryan: It’s a great little country to do business in, if your one of ‘the boys’. They should name the companies that are benefiting and while they do that, name the landlord TDs and make them list their portfolios just so we know who we are voting for in the next general election.

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    Mute Brendan Walsh
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    Sep 14th 2017, 2:34 AM

    @Ryan: seems a lot but do we know how much of this money is owed to Ireland as opposed to other countries? I’d say little if any is ours to keep.And after playing tax collector would Europe force us to distribute it to its rightful owners? And why would high tech companies want to setup here if we became known as Europe’s and America’s tax collector? What would be the price of jobs lost and unemployment benefits the Irish taxpayer would have to fund?

    37
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    Mute Ryan
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    Sep 14th 2017, 3:23 AM
    6
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    Mute Andy K
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    Sep 14th 2017, 8:02 AM

    @Brendan Walsh: That was a rumour which turned out not to be true.

    7
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    Mute Chris Kirk
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    Sep 14th 2017, 9:02 AM

    @Brendan Walsh: That is the type of scaremongering which landed us into this situation. Apple Corp wouldn’t be here if it wasn’t to their own strategic advantage and how many of those jobs fall to Irish people anyway. How many school leavers did they take on this year…..

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    Mute Tony Skillington
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    Sep 14th 2017, 9:10 AM

    @Ryan: spending our money to find ways not to take our money….

    14
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    Mute Brendan Walsh
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    Sep 14th 2017, 11:48 AM

    @Chris Kirk: don’t think it’s scaremongering. Europe doing everything to chase Apple, Google and all from Ireland by raising our corp tax whether directly or indirectly. From today’s Irish Times: “European Commission president Jean-Claude Juncker told MEPs that tax rules for Facebook, Google, Amazon and other digital companies should no longer be subject to veto by member states.” That would be detrimental to our economy. The country should fight interference in our tax rules. Our corp tax has actually been a bright spot in our economy if you look at the increasing amount of revenue it is bringing in, not to mention the jobs they create and money that puts in local economies. Apple is one of our largest tax contributors. They go and we lose far more than we gain here.

    3
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    Mute Padraig
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    Sep 14th 2017, 12:08 AM

    The gold edition iPhone X is on the way to Leo as we speak.

    171
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    Mute Robert Nodwell
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    Sep 14th 2017, 12:27 AM

    We’re spending money so we don’t have to take money……..where would ya get it?!

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    Mute Dead Mousche
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    Sep 14th 2017, 12:45 AM

    So lets get this straight….Our government has spent €3.6 million fighting against accepting the tax of €13 biliion owed to the country. Our politicians need a serious boot in the baws.

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    Mute TravellingTheWorld
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    Sep 14th 2017, 12:28 AM

    You could not make it up. You really couldn’t.

    125
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    Mute Ryan
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    Sep 14th 2017, 3:25 AM

    @TravellingTheWorld: You’d be accused of lying if you told this story…

    69
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    Mute Eileen O'Sullivan
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    Sep 14th 2017, 12:49 AM

    The first years cost is a lot of scans, doctors, nurses, teachers, disability payments, housing etc.

    74
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    Mute Michael McDermott
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    Sep 14th 2017, 3:07 AM

    We’re paying milllions (to not get payed billions) and Apple will be charging Irish consumers up to €382 more for the new iPhone X than they will be charging US consumers (and €72 more than the U.K.)

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    Mute Fluich Go Craicean
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    Sep 14th 2017, 6:46 AM

    @Michael McDermott: 230 is VAT , they are only charging 150 more. But that figure doesn’t suit your agenda

    14
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    Mute Conor Power
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    Sep 14th 2017, 7:37 AM

    @Fluich Go Craicean: So they are only screwing the Irish half as much as Michael said.

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    Mute Dave Murray
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    Sep 14th 2017, 8:01 AM

    @Fluich Go Craicean: So….still overcharging? Right so.

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    Mute Fluich Go Craicean
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    Sep 14th 2017, 8:34 AM

    @Dave Murray: by a much lower margin than implied, but I’d say the profit margin isn’t that different as there costs of doing business and selling here are higher.

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    Mute Fifty Shades of Sé
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    Sep 14th 2017, 3:25 PM

    @Fluich Go Craicean: Someone has to pay taxes, not everyone can afford the lawyers and accountants to avoid doing so.

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    Mute Eamonn Sheen
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    Sep 14th 2017, 4:13 PM

    @Fluich Go Craicean: Look at you trying to spin ripping people off into a positive.

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    Mute Trevor Hayden
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    Sep 14th 2017, 6:38 AM

    Ah sure it’s only 3.6m and counting, funny how we don’t have money for hospitals or other more important issues rather than “keeping tax evasion companies happy”
    What simpletons we must be seen as throughout the world.

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    Mute Dave Murray
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    Sep 14th 2017, 8:03 AM

    @Trevor Hayden: The government can magic up money whenever it wants to suit it’s agenda but not for when it’s really needed in areas that they have neglected for years.

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    Mute Martin Flood
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    Sep 14th 2017, 12:55 AM

    While everyone disses the Government’s abject spending (and rightly so), I’d like to see the breakdown of these legal costs. Exactly how much fu☆king money do lawyers make per hour??? In my earlier days I had the brains to enter the legal profession but certainly not the morals. Not begrudging them, just questioning their worth.

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    Mute Ryan
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    Sep 14th 2017, 3:30 AM

    @Martin Flood: Are you reassessing those morals Martin ? Cause I’m reassessing mine after seeing not only these fees but fees for tribunals etc.. Hell I’d say even the lawyer for the state at the case for the prison potty guy today made a nice few quid. I’ll happily argue that a guy with a 100+ convictions doesn’t deserve a private porcelain throne for a few hundred quid an hour.

    34
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    Mute @mdmak33
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    Sep 14th 2017, 1:24 AM

    This is terrible by government, terrible.apple are appealing the decision,no need for government to do it.fg cannot help themselves from squandering money,the public’s money.they really are traitors of the highest Calibre.

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    Mute Andy K
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    Sep 14th 2017, 8:07 AM

    @@mdmak33: With iPads becoming a requirement for schools I am sure many backroom deals were done between politicians and apple.

    15
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    Mute Padraic O Sullivan
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    Sep 14th 2017, 7:09 AM

    Whatever you do, don’t ever question the cost of legal fees in this country, ever. How are their kids and grandkids going to become millionaires otherwise…

    34
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    Mute Dave Doyle
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    Sep 14th 2017, 8:34 AM

    This shows that Corporate Welfare is the governments primary concern. The welfare and needs of the people comes far down the list of priorities.

    29
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    Mute Stephen Duffy
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    Sep 14th 2017, 6:00 AM

    Ireland is dead right to appeal.. there would be costs associated with Ireland collecting taxes on behalf of other EU counties.. The chances of keeping any of that money is based on our ability to convince the likes of Italy that Ireland is entitled to the tax on am iPhone, made in China, that never came near Ireland, and sold in Rome or Turin … Good luck with that…!!!!

    31
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    Mute Windy Atlantic Way
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    Sep 14th 2017, 7:18 AM

    Our government & cronies are so far removed from society, it’s time to revolt.

    29
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    Mute Cloud Jellies
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    Sep 14th 2017, 7:35 AM

    Ireland:
    How not to run a country:
    Please contact:
    FF
    FG
    Where all your questions will not be answered.
    (Now there is a surprise) NOT.

    26
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    Mute Rob Hopkins
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    Sep 14th 2017, 1:15 AM

    Grand but when are we getting an actual Apple Store in Dublin?

    18
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    Mute minorproblem
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    Sep 14th 2017, 7:15 AM

    We are right to pursue this. We have let europe dictate enough to us. The basic here is that they are trying to set our tax rate. This to me is the issue look past the figures of tax owed.. money which would probably be wasted and gone in a year along with our ability to set our own tax rate and probably with many mncs who provide ten times the figure in salaries to employees.

    19
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    Mute Kevin Slater
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    Sep 14th 2017, 7:30 AM

    The citizens of this country by whose authority you govern are hereby instructing you to take the money. Do as you are told

    16
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    Mute Ulick Daly
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    Sep 14th 2017, 4:52 AM

    Downright treason by self-serving fascist lowlifes.
    Is there not ONE leader in this country…?

    38
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    Mute Paul Gurney
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    Sep 14th 2017, 9:25 AM

    @Ulick Daly: Certainly not Ulick…leo’s probably getting his hair done for the next photo shoot so dont be expecting him to do anything and anyway he’ll be able to put a positive SPIN on it regardlless of what happens..Result…FG 1 THE PEEPS 0

    11
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    Mute Eddie Fennessy
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    Sep 14th 2017, 9:46 AM

    Grotesque – paying €50 tax on every €1million funnelled through Irish accounts.

    Unbelievable – no premises, no employees, no activities.

    Bizarre – defending those interests against the interest of the state.

    Unprecedented – Spending millions from the exchequer to refuse billions owed in taxes.

    ?

    8
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    Mute Life in no motion
    Favourite Life in no motion
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    Sep 14th 2017, 11:44 AM

    ” no premises, no employees, no activities.”

    every heard of cork? It’s a little place just outside Dublin. You should try leave the capital sometime

    2
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    Mute Graham Cheevers
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    Sep 14th 2017, 9:06 AM

    My mammy used to tell me to fight my own battles and not let others fight them for me. On that basis my mammy should run for Taoiseach……Vote For Mammy

    7
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    Mute Rory J Leonard
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    Sep 14th 2017, 7:20 AM

    Standardisation of Rules, surrounding calculation of fairer Corporation Tax charges against digital economy multi nationals for each country in which they conduct business, is continuing apace under the oversight of OECD and other International bodies.

    Apple Inc current issues with Ireland / EU on that €13 bn CT sum stem from a clash of old economy rules being applied to a new digital economy game.

    Irish politician’s time would be far better served in pushing for reforms of existing planning laws currently delaying crucial commercial (Apple’s Athenry, Co. Galway Project) and residential development, instead of the misinformed drivel being propagated around that €13 bn.

    5
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    Mute Joseph Dempsey
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    Sep 14th 2017, 9:19 AM

    Why are we paying any fees at all? This an apple problem ffs, take the money and run.

    4
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    Mute Patabake Kennedy
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    Sep 14th 2017, 8:02 AM

    Its about time a few of those cans that were kicked down the road came back up to, maybe, bite a few these fella’s.

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    Mute Gary Heslin
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    Sep 14th 2017, 10:47 AM

    So they want to give us money back (Apple)our government don’t want it …it’s a pity they don’t feel the same way about my paycheck

    3
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    Mute Sue Kitchoo
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    Sep 14th 2017, 1:05 PM

    Tax cheats cheat us all

    2
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    Mute Conor Croasdell
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    Sep 14th 2017, 9:53 AM

    1000s of millions less than 13bn, why is this a story?

    1
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    Mute Brian O Reilly
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    Sep 14th 2017, 9:20 AM

    We have to take care of these Corporate entities,or they might be forced to take their business elsewhere.

    1
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    Mute Tom Harpur
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    Sep 14th 2017, 8:04 AM

    In the end the €13bn that’s in escrow will just be transferred to a legal company that’s one way of getting rid of it.

    1
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    Mute Daniel Heath
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    Sep 14th 2017, 8:54 AM

    The apple doesn’t fall far from the tree. Bye bye miss American pie.

    1
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    Mute OCallaghan TP
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    Sep 14th 2017, 4:43 PM

    In fairness it’s we allow the idiots to go spend our money.. nothing will be done to stop this madness.. and we need that tax money

    1
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