Description of the tax-dodging practices used by companies. Particularly visible for a company the size of Apple. And because it’s Apple, it makes the news.
But many, if not all, large-sized companies do it as well.
Companies are just being rational and using the system and its loopholes.
Countries and states are engaged in an foolish competition to the lowest taxer, to attract companies and hopefully create jobs. For some countries without imagination or natural resources, this is even the main strategy (I’m looking at you, Luxemburg)
This is now organized blackmailing. Drop your tax rate or loose the jobs.
“When it comes time for all these companies — Google and Apple and Facebook and the rest — to pay their fair share, there’s a knee-jerk resistance,” Mr. Murphy said. “They’re philosophically antitax, and it’s decimating the state.”
“But I’m not complaining,” he added. “We can’t afford to upset these guys. We need every dollar we can get.”
At the same time, these companies buy themselves a good conscience by sponsoring institutions and going the charity path.
Apple has given nearby Stanford University more than $50 million in the last two years. The company has also donated $50 million to an African aid organization. In its statement, Apple said: “We have contributed to many charitable causes but have never sought publicity for doing so. Our focus has been on doing the right thing, not getting credit for it. In 2011, we dramatically expanded the number of deserving organizations we support by initiating a matching gift program for our employees.”
Peanuts compared to the money saved in the tax-dodging setups.