Sunday, April 29, 2012
Apple and Taxes
The New York Times today has a long and detailed article on how Apple, the most profitable company in the U.S., pays little taxes as compared to most non-tech firms. The key idea is that Apple is able to locate parts of its company where revenue is generated in low-tax areas. Nevada rather than California, for example. So, while a firm like Wal-mart pays about a 20% tax rate, Apple pays less than 10%. Apple is able to use both states in the US and other countries in this process of minimizing taxes. The things Apple and other tech firms can do cannot be replicated by more standard businesses where it is diffiult to relocate production facilities. Perhaps the Occupy Wall Street folks should think about occupying Apple. They can use their Iphones to organize their activities.