Does avoiding taxes make Apple evil?

The tech innovator gets out of paying billions in corporate taxes every year by using perfectly legal — and perhaps questionable — loopholes

Shelves of iPads on display at London's flagship Apple store: Apple makes a big chunk of its money overseas, where it shelters much of its profit from U.S. taxes.
(Image credit: Ian Gavan/Getty Images)

Apple is facing an angry backlash over the elaborate tactics it uses to sidestep taxes, such as setting up subsidiaries in low-tax states and foreign countries. Sen. Tom Coburn (R-Okla.) says he's "livid" about Apple's accounting tricks, which, according to a New York Times report, help the tech giant avoid paying billions of dollars in corporate taxes on the money it hauls in on iPhone and iPad sales every year. Apple says it "has conducted all of its business with the highest of ethical standards," and points out that its tax strategies are perfectly legal. Is Apple's accounting unscrupulous, or is it just good business?

Apple should be ashamed: Apple may be "one of America's most admired companies," says David Callahan at Policy Shop, but it's "also among its least ethical." Sure, it's not the only company called out for using Chinese factories that are tough on their workers, and many U.S. corporation "exploit tax loopholes," but "as the nation's top company, it has a greater responsibility for ethical leadership." And it certainly "can afford to behave better."

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