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How Apple Sidesteps Billions in Global Taxes
New York Times ^ | April 28, 2012 | by Charles Duhigg

Posted on 04/28/2012 3:38:31 PM PDT by Oldeconomybuyer

RENO, Nev. — Apple, the world’s most profitable technology company, doesn’t design iPhones here. It doesn’t run AppleCare customer service from this city. And it doesn’t manufacture MacBooks or iPads anywhere nearby.

Yet, with a handful of employees in a small office here in Reno, Apple has done something central to its corporate strategy: it has avoided millions of dollars in taxes in California and 20 other states.

Apple’s headquarters are in Cupertino, Calif. By putting an office in Reno, just 200 miles away, to collect and invest the company’s profits, Apple sidesteps state income taxes on some of those gains.

California’s corporate tax rate is 8.84 percent. Nevada’s? Zero.

Almost every major corporation tries to minimize its taxes, of course. For Apple, the savings are especially alluring because the company’s profits are so high. Wall Street analysts predict Apple could earn up to $45.6 billion in its current fiscal year — which would be a record for any American business.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; News/Current Events; Politics/Elections; US: California
KEYWORDS: apple; taxes

1 posted on 04/28/2012 3:38:39 PM PDT by Oldeconomybuyer
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To: Oldeconomybuyer
so classic of the left. they loved apple until they hated it.
2 posted on 04/28/2012 3:41:15 PM PDT by the invisib1e hand
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To: Oldeconomybuyer

good for them.


3 posted on 04/28/2012 3:45:09 PM PDT by bravo whiskey (If the little things really bother you, maybe it's because the big things are going well.)
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To: Oldeconomybuyer

They already have to deal with the highest federal taxes in the civilized world.


4 posted on 04/28/2012 3:47:50 PM PDT by palmer (Jim, please bill me 50 cents for this completely useless post)
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To: Oldeconomybuyer
Gee, you mean Uberliberal Steve Jobs devised a strategy to avoid confiscatory taxation? Perish the thought.

Liberals talk a good game-- until it comes to their own money.

5 posted on 04/28/2012 3:48:12 PM PDT by Lysandru
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To: bravo whiskey

This kind of thing is the hallmark of a well run company.

I remember that their factory south of Sacramento had a rental space for people they got parts from. They never actually took delivery of a part until about 2 minutes before it got built into a Mac.


6 posted on 04/28/2012 3:48:31 PM PDT by glorgau
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To: Oldeconomybuyer

They observe incentives, then respond to those incentives.

ONLY bureaucrats are shocked by that —even kids running a Lemonaide stand learn this in one day.


7 posted on 04/28/2012 3:49:13 PM PDT by gaijin
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To: gaijin

Sure not going to cry about California missing out on some taxes. The state does nothing to earn them anyway.


8 posted on 04/28/2012 3:51:14 PM PDT by muawiyah
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To: Oldeconomybuyer

The Slimes just couldn’t bring themselves to say “Legally Avoids” rather than “sidesteps”.Next we’ll find the government prevent Boeing from building a plant in....SOUTH CAROLINA!


9 posted on 04/28/2012 3:53:42 PM PDT by Gay State Conservative (Unlike Mrs Obama,I've Been Proud Of This Country My *Entire* Life!)
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To: the invisib1e hand


Apple Stock price comparison versus The NY Times for the past 5 years.
10 posted on 04/28/2012 3:54:27 PM PDT by jimbo123
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To: Lysandru

“Liberals talk a good game— until it comes to their own money.”

BINGO. You hit the nail on the head. Conservatives were proven to be the ones who give more to charity but libtards are the stingiest when it comes to money. I work in L.A. and figured out for the longest time these clowns possess “rich man’s guilt”. That they cannot accept they got rich thru hard work and in order to appease that guilt, resort to lean left.


11 posted on 04/28/2012 3:58:36 PM PDT by max americana
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To: Oldeconomybuyer
But,..but,.. Apple is a leftist, progressive, metro-homo, laid back all things good especially pot, screw the man group of funky guys and gals. Are they even a corporation? How could they possibly intentionally avoid taxes? don't they give all their profits to charity?

Can it be that leftie hypocrisy exists?

12 posted on 04/28/2012 3:59:23 PM PDT by Navy Patriot (Join the Democrats, it's not Fascism when WE do it and the law is what WE say it is.)
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To: Oldeconomybuyer

Jealousy reins at the NYT, where no one working there could qualify to be an Apple janitor.


13 posted on 04/28/2012 4:00:35 PM PDT by Da Coyote
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To: bravo whiskey

Smart play Apple.


14 posted on 04/28/2012 4:01:30 PM PDT by Pasadena2k
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To: Oldeconomybuyer

Where’s Congress and their rabid calls for a “windfall profits tax?” I’d say Apple warrants a communist tactic like this FAR more than oil companies do. Much higher profit margin.


15 posted on 04/28/2012 4:10:55 PM PDT by MCH
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To: Oldeconomybuyer
Does Nevada care?

Put it this way: everything we do outside California (living, working, running a business, investing) deprives California of the ability to tax us. In a sense we are all guilty of whatever problems California has because of their state revenue shortfall.

16 posted on 04/28/2012 4:12:29 PM PDT by Procyon (Decentralize, degovernmentalize, deregulate, demonopolize, decredentialize, disentitle.)
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To: jimbo123

That explains it!


17 posted on 04/28/2012 4:13:20 PM PDT by the invisib1e hand
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To: the invisib1e hand

The NY homo liberals are jealous of the SF homo liberals.


18 posted on 04/28/2012 4:25:26 PM PDT by jimbo123
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To: Oldeconomybuyer

Good idea for avoiding government theft.


19 posted on 04/28/2012 4:33:48 PM PDT by Gator113 (***YOU GAVE it to Obama. I would have voted for NEWT.~Just livin' life, my way~)
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To: Oldeconomybuyer

Having stood at an Apple bar, I can tell you that their business model is the bomb.


20 posted on 04/28/2012 4:37:15 PM PDT by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: combat_boots

The genius bar? My Gf schooled one of these tools at the Apple Store close by in Melrose. And I’m not an Apple fanboy. If only Best Buy had the same approach.


21 posted on 04/28/2012 4:41:53 PM PDT by max americana
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To: Oldeconomybuyer

Excellent planning, Apple. Very smart. Your success makes me proud to be your customer.

The New York TImes, by instructive contrast, is located in New York City, all the better to bring about its bankruptcy more expeditiously as its, its employees, its advertisers, and its readership’s disposable income shrinks away with each passing day.

Tick tock


22 posted on 04/28/2012 4:48:27 PM PDT by Mobties (Let the markets work! Reduce the government's footprint!)
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To: Oldeconomybuyer

I would rather a corporation limit it’s taxes than take a bailout from an ever-expanding government with an insatiable appetite for taxes.


23 posted on 04/28/2012 4:56:20 PM PDT by patriot5186
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To: Oldeconomybuyer

Good article. Thanks. Apple does what most companies and individuals will try do, reduce the taxes they pay.


24 posted on 04/28/2012 5:16:37 PM PDT by rawhide
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To: Oldeconomybuyer


25 posted on 04/28/2012 5:37:20 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Oldeconomybuyer

Kali’s tax structure vs Nevada’s tax structure.....
one of the many reasons I left Kali more than two
decades ago. A geologically spectacular state that
is climatalogically close to heaven on earth.....and it
is socially and politically the most retarded, retrograde
insane state imaginable. What a shame, what a waste of
an incredible region.


26 posted on 04/28/2012 5:45:04 PM PDT by nvscanman
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To: Oldeconomybuyer
maybe they should read Laffer...
27 posted on 04/28/2012 5:51:35 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Oldeconomybuyer
If what they are doing is all legal then more power to them. "You have no moral duty to pay any more in taxes than the absolute minimum required by law--" SC Justice Learned Hand.
28 posted on 04/28/2012 5:55:55 PM PDT by hinckley buzzard
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To: Oldeconomybuyer

I’m pretty sure that, the state government in California doesn’t mind Apple not paying their taxes in the state, since, Apple is officially situated in the state, and it has thousands of employees from which the state does collect taxes. It’s very likely a mutual agreement, where Apple keeps operations in the state with thousands of taxpaying employees (with pretty good salaries), and the state gets a huge public relations coup by having the biggest market cap company in the world situated in the state. So, I’m not sure that the state feels robbed in any way.

Besides, taxing Apple would create an incentive for Apple to move elsewhere, and that would mean a lot less people from whom to extract taxes. California needs all the help they can get, and Apple is a goose with golden eggs.


29 posted on 04/28/2012 6:30:03 PM PDT by adorno
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Click the link. The Republic you save may be your own.

30 posted on 04/28/2012 7:09:09 PM PDT by RedMDer (https://support.woundedwarriorproject.org/default.aspx?tsid=93)
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To: MCH

Where is Nostrils Waxman, Stretch Pelosi, or Schmucky when you need them to “Demonize the Rich Greedy Capitalists”?

Big Oil, Pharma, Banks and even Car CEO’s are frogmarched to DC...Maxine “Dumb as an Eggplant” could even say “This Liberal will Natonalize the Computer business.”

I loathe the Left.


31 posted on 04/28/2012 7:13:52 PM PDT by wac3rd (Somewhere in Hell, Ted Kennedy snickers.....)
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To: Oldeconomybuyer
This is what you get when you have 70,000 pages of Title 26, the Internal Revenue Code, plus additional rulings that ENCOURAGE the type of "offshoring" activities the New York Times so much dislike. And you wonder why 70% of Apple's liquid asset holdings are sitting in offshore banks.

It's time to admit that our income tax code is broken and we need to start all over again by eventually going to the taxation system I suggested in my tagline.

32 posted on 04/29/2012 10:58:26 AM PDT by RayChuang88 (FairTax: America's economic cure)
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