Wednesday, May 2, 2012

Apple Is Right

There is a mini-kerfuffle currently about Apple Corporation doing a variety of things to avoid paying taxes. As far as anyone can tell, all of those things are entirely legal. See The Week article on Yahoo News.

COTTonLINE's position is that they'd be stupid to do anything less fiscally careful. Indeed, if the Apple CEO discovered the firm was paying taxes they could legally avoid, he should fire the CFO.

If voters are unhappy about Apple's tax avoidance, the logical thing is to demand their legislators close the legal loopholes Apple is using. It is likely, however, that such demands will receive polite attention but little more.

Legislators rely on companies and their executives for campaign donations, donations the man in the street is unwilling or unable to give. Therefore voters shouldn't be surprised if, most of the time, legislators let those paying the piper call the tune.