Taxing corporations is a delicate balance, especially in this global economy. Tax them too much and they can’t be as competitive with price and may move their business and their jobs to another country. Tax them too low, they end up pocketing sizable profits at the expense of American consumers without paying their fair share. I must say that it is surprising to see corporate profits rise, even when the Country is in recession.
The tax code for businesses is very complicated and seems to encourage shady behavior. There are tons of loopholes in the code like special rules and exemptions. Apple’s actions are
most likely perfectly legal. Offshore loopholes in the tax code allow companies to shield profits overseas and defer paying US taxes (often indefinitely). In fact, Apple is most certainly not alone in this. Apple, Microsoft, GE, Cisco, and Google all push over 50% of their cash in overseas accounts. When we have a complicated tax code, who benefits? What do you think?