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From the NY Times

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.
More below the fold.

Setting up an office in Reno is just one of many legal methods Apple uses to reduce its worldwide tax bill by billions of dollars each year. As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands — some little more than a letterbox or an anonymous office — that help cut the taxes it pays around the world.
As it stands, the company paid cash taxes of $3.3 billion around the world on its reported profits of $34.2 billion last year, a tax rate of 9.8 percent.
By comparison, Wal-Mart last year paid worldwide cash taxes of $5.9 billion on its booked profits of $24.4 billion, a tax rate of 24 percent, which is about average for non-tech companies.
Anyway, I guess Apple deserves these tax breaks for many reasons
- They are major job creator in China.
- They don't manufacture in the US because they want their workers to
    live in company dorms
    be on call 24/7
    Can be woken up at midnight with biscuit and tea.
    No worker's rights
    No safety norms
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Comment Preferences

  •  I refuse to buy any Apple products. Period. (5+ / 0-)

    Unless they repatriate a significant amount of their business back to the US.

    •  So whose computers do you buy? (5+ / 0-)
      Recommended by:
      Miggles, Lujane, craiger, Utahrd, Samulayo

      Apple isn't Foxconn's only client.

      "When I give food to the poor, they call me a saint. When I ask why the poor have no food, they call me a communist." --Dom Helder Camara, archbishop of Recife

      by JamesGG on Sat Apr 28, 2012 at 06:33:30 PM PDT

      [ Parent ]

      •  The difference (6+ / 0-)

        The difference is that the Dells and the HPs sell their products at wafer thin margins. With Apple's margins, they can afford to manufacture in the US.

        •  So it's okay to buy from someone... (7+ / 0-)

          ...who's exploiting overseas labor as long as they're not making as much money from it?

          "When I give food to the poor, they call me a saint. When I ask why the poor have no food, they call me a communist." --Dom Helder Camara, archbishop of Recife

          by JamesGG on Sat Apr 28, 2012 at 06:39:05 PM PDT

          [ Parent ]

          •  Let's put it this way ... (4+ / 0-)
            Recommended by:
            Lujane, ffour, raster44, randomfacts

            for ffour and others, it's a start. A start at voting with the pocketbook in relationship to the most powerful consumer, smart-electronics transnational corporation in the world.

            That seems like a good start. Heck, you can name the second company to focus on, after this hulking behemoth.

            In a democracy dissent is an act of faith. Like medicine, the test of its value is not in its taste, but in its effects. J. William Fulbright

            by crescentdave on Sat Apr 28, 2012 at 07:08:16 PM PDT

            [ Parent ]

          •  No (0+ / 0-)

            But it's not hypocritical to expect someone making lots of money to pay lots of taxes, and to focus criticism proportionally upon them.

            Linking to a news article is journalism in the same sense that putting a Big Mac on a paper plate is cooking.

            by Caj on Sun Apr 29, 2012 at 07:51:33 AM PDT

            [ Parent ]

            •  Blame the laws, not the company. (0+ / 0-)

              I don't know about you, but I know I take every tax deduction I legally can rather than voluntarily paying more in taxes than I have to.

              Can you provide evidence that Apple has been active in lobbying for the tax loopholes they're taking advantage of?

              If not, then the laws that allow them to pay less in taxes aren't their fault—and their taking advantage of those laws is no different than your or my taking all the tax deductions that are legally available to us.

              "When I give food to the poor, they call me a saint. When I ask why the poor have no food, they call me a communist." --Dom Helder Camara, archbishop of Recife

              by JamesGG on Sun Apr 29, 2012 at 10:42:26 AM PDT

              [ Parent ]

      •  Question : is there a good list (0+ / 0-)

        of foxcomm clients?   I am a bit lazy, but would like to boycott them all.

    •  Buy used computers and pressure China to (0+ / 0-)

      stop permitting companies to exploit their workers.

      Almost all computers are made in China. As bad as foxconn is, it is better than most of the other computer manufacturers in China. foxconn makes products for many companies, not just apple. Many non-apple products are made in factories with even worse conditions for their workers than those found at foxconn. I'm certainly not excusing evil foxconn, but if you think buying non-apple products won't contribute to the exploitation of workers, you're mistaken.

      These days it's virtually impossible to buy a computer which wasn't made by exploited people. The only way to compute without full impact on poor virtually indentured servants in China, is to buy used. Unless you need the latest and greatest, you can get perfectly adequate used computers while saving money and landfill space in the process.

      Ultimately, we must put pressure on manufacturers of goods for sale in the US to treat their employees well and pay them a decent living wage. Until we no longer allow products made by virtual indentured servants (or even worse, by prisoners) to be sold in this country, atrocious conditions will continue to exist worldwide.

  •  I don't understand where they get the $3.3 billion (0+ / 0-)

    From what I read, Apple paid $8.283 in taxes in 2011 which is 24.2%. This is the number in the link given above as well as Apple's income statement. I can't find $3.3 billion anywhere and it is certainly not what Apple paid "around the world" in 2011 so far as anything I can find.

    You can't scare me, I'm sticking to the Union - Woody Guthrie

    by sewaneepat on Sun Apr 29, 2012 at 05:14:29 AM PDT

  •  Makes sense. (0+ / 0-)

    Likewise, I buy gas from the cheapest gas station I can find. Even if I have to get it from a gas station in the next town over. I can afford to pay more but I chose to pay less.

    Posted using my iPad.

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