Saturday, April 28, 2012
Is Apple investing in profitable businesses while maintaining the ethics of an evil corporation?
Wall street analysts predict that Apple could earn as much as $45.6 billion this year, and yet they are dodging taxes like they are ENRON.
By setting up their subsidiary investments firm Braeburn Capital in Reno Nevada, they dodge California's 8.84% corporate tax rate. Apple also has subsidiaries set up in Ireland, the Netherlands, Luxembourg, and the British Virgin Islands. Apple's dealings make clear the glaring deficiencies in US tax code. They pioneered a technique called the "Double Irish With a Dutch Sandwich," which lowers taxes by routing profits through Irish Subsidiaries and then the Netherlands and the Caribbean. Hundreds of other corporations now use this scheme.
It is estimated that Apple saved 2.4 billion in taxes with it's dastardly chicanery. Apple did pay $3.3 billion in taxes on its profits of $34.2 billion Last year. That comes out to a tax rate of 9.8%. Walmart, often ranked among top evil corporations paid 24% tax last year.
How long can Apple conduct its operation in such a greedy irresponsible manner without repercussions? Does this knowledge affect your desire to buy Apple?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment