Apple is one of the largest and most profitable technology company in the world today. Every year Apple sees profits in the billions of dollars on its financial sheets. While this technology giant has seen tremendous gains in profits are explained by its tax avasion strategy; location, location, location. Apple sets up its main offices in the U.S in areas where the corporate taxes are relatively low. For example its central office is located in Cupertino, California. However it collects and invests its profits in Reno, Nevada. The difference between these states is that the corporate tax in California is 8.84%; while for Reno it is 0%, according to the article. It also has small subsidiaries in low-taxed places all across the globe to avoid major taxes.
While it is in every company's best interest to minimize costs and taxes, Apple has done so well at this task that it is predicted to earn $45.6 billion in its current fiscal year which would be a record for any American business. It is clear that Apple is undercutting the tax system and should be paying a greater amount of taxes than it currently pays. This situation has occured because the tax sytem is predominantly based on industrial industries when they were created. Apple, being a techonlogical and mainly digital firm, can avoid many taxes and cheat the system "legally." In a situation like this, the government is needed to intervene and somehow redefine the tax laws to better suite todays' growing digital firms in order to stop giants like Apple from abusing the system and hording such large profits for itself when it could be redistributed in this recovering economy.
