[ml/nj]

Apple’s federal tax bill likely would have been $2.4 billion higher last year without these moves, says the Times.

I'm confused. I thought Apple moved some operations to Nevada to avoid California taxes. If Apple had had to pay the California taxes then presumably its profit would have been lower than it was. And I thought Federal Corporation taxes were based on profits earned by the corporation. So wouldn't Apple have paid LESS federal tax if it had kept those operations inside California?

ML/NJ

[freedombiz]

Taxes are paid on revenues, not profits