Legislators Are Caught In The Past

The New York Times — that wonderful institution that used the power of Eminent Domain to build its NY City headquarters — wrote a lengthy article condemning by explanation that fellow Liberal corporation, Apple Computers which uses legal trickery to avoid paying taxes!

That is a hoot! Is there no honor among thieves?

It seems that Apple Computer has a tiny Reno, Nevada office to avoid paying California taxes on its sale of intellectual property through iTUNES and similar electronic sites in the Cloud, and offices in Ireland and the British Virgin Islands to avoid taxes in Britain.

All very legal, of course, the difference between avoiding (legal) and evading (illegal) so the article could be considered by rational people as really a condemnation of stupid tax laws.

Liberals love Apple Computer, and hate Wal-Mart, but Apple pays an effective 9.8% tax rate while Wal-Mart pays an effective tax rate of 24%. (According to the NYTimes.)

So, who is not paying their ” fair share?”

A Wall Street Journal analysis shows that of the top 35 corporations who increased jobs, 2/3 of the jobs were gained overseas! Last year Wal-Mart added zero jobs in the US, but 100,000 jobs overseas. Kraft Foods lost 4,000 US jobs, but they added 33,000 overseas.

Our tax laws and regulatory laws drive corporations to find loopholes, and methodologies to make a profit.  Legally!

And, how can a corporation that used legal (but I would argue immoral) methods to site their corporate headquarters, complain about Apple Computer?

The mind boggles! We need to fix the problems, and passing laws restricting movement of people and money is not the answer — it violates the Constitution.

We need to compete! While it is not easy to move brick and mortar sites, moving intellectual property sites is cheap and easy. Raise the tax heat too high, and all of the taxes fall to zero as the site is electronically relocated.

Legislators are caught in the past.

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