Posted on 04/28/2012 3:38:31 PM PDT by Oldeconomybuyer
RENO, Nev. — 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.
Apple’s headquarters are in Cupertino, Calif. By putting an office in Reno, just 200 miles away, to collect and invest the company’s profits, Apple sidesteps state income taxes on some of those gains.
California’s corporate tax rate is 8.84 percent. Nevada’s? Zero.
Almost every major corporation tries to minimize its taxes, of course. For Apple, the savings are especially alluring because the company’s profits are so high. Wall Street analysts predict Apple could earn up to $45.6 billion in its current fiscal year — which would be a record for any American business.
(Excerpt) Read more at nytimes.com ...
The genius bar? My Gf schooled one of these tools at the Apple Store close by in Melrose. And I’m not an Apple fanboy. If only Best Buy had the same approach.
Excellent planning, Apple. Very smart. Your success makes me proud to be your customer.
The New York TImes, by instructive contrast, is located in New York City, all the better to bring about its bankruptcy more expeditiously as its, its employees, its advertisers, and its readership’s disposable income shrinks away with each passing day.
Tick tock
I would rather a corporation limit it’s taxes than take a bailout from an ever-expanding government with an insatiable appetite for taxes.
Good article. Thanks. Apple does what most companies and individuals will try do, reduce the taxes they pay.
Kali’s tax structure vs Nevada’s tax structure.....
one of the many reasons I left Kali more than two
decades ago. A geologically spectacular state that
is climatalogically close to heaven on earth.....and it
is socially and politically the most retarded, retrograde
insane state imaginable. What a shame, what a waste of
an incredible region.
maybe they should read Laffer...
I’m pretty sure that, the state government in California doesn’t mind Apple not paying their taxes in the state, since, Apple is officially situated in the state, and it has thousands of employees from which the state does collect taxes. It’s very likely a mutual agreement, where Apple keeps operations in the state with thousands of taxpaying employees (with pretty good salaries), and the state gets a huge public relations coup by having the biggest market cap company in the world situated in the state. So, I’m not sure that the state feels robbed in any way.
Besides, taxing Apple would create an incentive for Apple to move elsewhere, and that would mean a lot less people from whom to extract taxes. California needs all the help they can get, and Apple is a goose with golden eggs.
Where is Nostrils Waxman, Stretch Pelosi, or Schmucky when you need them to “Demonize the Rich Greedy Capitalists”?
Big Oil, Pharma, Banks and even Car CEO’s are frogmarched to DC...Maxine “Dumb as an Eggplant” could even say “This Liberal will Natonalize the Computer business.”
I loathe the Left.
It's time to admit that our income tax code is broken and we need to start all over again by eventually going to the taxation system I suggested in my tagline.
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