Linked by Thom Holwerda on Sun 29th Apr 2012 12:22 UTC
Apple "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." Sure, this is all legal for companies to do (and Apple obviously isn't alone) but it does show you how much sense of morality companies have. Answer: none. But hey, it's legal, and the law is never wrong, right?
Permalink for comment 516206
To read all comments associated with this story, please click here.
They aren't escaping the taxes
by jonsmirl on Sun 29th Apr 2012 14:40 UTC
jonsmirl
Member since:
2005-07-06

Everything is owned by people. Corporations may own other corporations but there is always a person at the end of the chain. If these Apple shareholders live in California, like many of them do, California still gets a great big tax bite when they sell their Apple stock.

Corporate profits are taxed twice. Once at the corporate level and a second time at the shareholder level. If Apple avoids the taxes at the corporate level it makes the share price go up, which then causes the individuals to pay more in taxes.

The more relevant question is, if Apple makes an iPhone in China and then sells it to a Chinese citizen, why does the state of California try to tax that transaction?

Edited 2012-04-29 14:42 UTC

Reply Score: 4