Apple’s profits more than quintupled in the last five years, but their tax burden has risen much more slowly. Last year, just 9.8% of their profits went to taxes. ”By comparison,” writes economist Marty Hart-Landsberg, “Wal-Mart was downright patriotic — paying a tax rate of 24 percent.”
How does the company do it? Hart-Landsberg summarizes the New York Times: “The answer is tax loopholes and a number of subsidiaries in low tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands. ” More details at Reports from the Economic Front.