Apple’s gotten loads of negative press recently for allegedly dodging taxes, finding loopholes to avoid paying taxes on billions of dollars in revenue a year.
Why shouldn’t it do that? asks Derek Thompson, writing for The Atlantic. That’s exactly the point of a corporation — to find every trick it can to increase revenue and decrease costs.
Apple gets 61 percent of its revenue from international sources. So it uses “empty subsidiaries” in low-tax countries around the globe to stash its revenues to avoid paying tax rates here in the U.S.
And that’s just reality, Thompson says. We can’t tax Apple’s revenues when they happen overseas, and there isn’t an easy fix to the tax code to be able to do so.
See the story at The Atlantic.