Skip to comments.How Apple Sidesteps Billions in Taxes (Where's the "Fair Share" for Apple?)
Posted on 04/30/2012 3:24:33 AM PDT by tobyhill
Apple, the worlds most profitable technology company, doesnt design iPhones here. It doesnt run AppleCare customer service from this city. And it doesnt 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.
Apples headquarters are in Cupertino, Calif. By putting an office in Reno, just 200 miles away, to collect and invest the companys profits, Apple sidesteps state income taxes on some of those gains.
Californias corporate tax rate is 8.84 percent. Nevadas? Zero.
Setting up an office in Reno is just one of many legal methods Apple uses to reduce its worldwide tax bill by billions of dollars each year. As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands some little more than a letterbox or an anonymous office that help cut the taxes it pays around the world.
(Excerpt) Read more at nytimes.com ...
Kudos to Apple! Now if you want to level the playing field cut corporate taxes to zero in all of the states.
Oh can’t do that? Well that’s your problem then.
There is nothing legally or ethically wrong with this strategy. Around fifteen years ago...Microsoft threatened the US government with the hint that they might take the company to Canada. They ended up with some great deals, which were compliments of various Senators and Congressmen.
I would imagine that half the major companies left in California today....are looking at the idea of moving their operation out.
Did they break any laws? Warren Buffet could perhaps give them some pointers on breaking some.
We see this all the time from the libs, but they ignore companies like GE who support the move toward socialism.
Is there one person in this country who pays the most income taxes possible? No, everyone does what they can to minimize their tax.
"Legal Methods" nothing wrong with that. Smart moves on their part.
I am surprised the New York Times did not use the term "Controversial Loopholes" in this article.
The NYT could use a some smart moves rather than laying off personnel.
As they should pay the minimum but oil companies have additional taxes added to them called 18.5 cents per gallon tax.
We all know it really doesn’t matter what the tax rates are if your company makes a desirable product - Apple Mac or oil companies. The increase in taxes will be passed on in the final consumer price. WE will pay for the tax hike, not the corporations!
We all know it really doesn’t matter what the tax rates are if your company makes a desirable product - Apple Mac or oil companies. The increase in taxes will be passed on in the final consumer price. WE will pay for the tax hike, not the corporations! Nothing wrong with that, but Dems never say it.
I saw a commercial tonight advertising their latest and greatest I-Junk.
I was waiting for the federally required statement “Made in China for 65 cents an hour” disclaimer but never saw it...
BINGO! Corporations always pay 0 taxes but Libs don’t comprehend how economics works. I can’t drive my car on an IPOD but of course for entertainment purposes I get it for a better price being they pay lower taxes.
No they didn't break any laws but this should take the issue away from Obama if Mittens had any smarts. Obama attacks the oil companies and Mittens takes on the leftist techies.I wouldn't count on it. I expect mittens to follow the mccain formula: attack conservatives viciously while bowing reverentially in the direction of the Great Black One.
Mittens has the advantage if he takes it because to call out the leftist calls out the hypocrites.
Maybe its time for King Barry to set an example for Americans and American companies by voluntarily paying more in taxes than what is required by law. The IRS will gladly cash the check.
Until he is willing to do this, he and all the liberal elite who worship him can just go **** themselves.
It’s not Apple’s fault. The corrupt, criminal US Congress only has to look into a mirror to see who are the real scumbags in this tax mess: THEM!
The New York Times Company (NYT) -NYSE
Profit Margin (ttm):-0.13%
Apple Inc. (AAPL) -NasdaqGS
Profit Margin (ttm): 27.13%
Some might see it as ethically wrong were they to gratuitously pay higher than required taxes—and earn less than they could for their shareholders.