Sunday, April 29, 2012


Apple not only manufactures smart phones, but conducts businesses in a very smart way.

The company paid cash taxes of $3.3 billion around the world on its reported profits of $34.2 billion last year, a tax rate of 9.8 percent.

By comparison, Wal-Mart last year paid worldwide cash taxes of $5.9 billion on its  profits of $24.4 billion, a tax rate of 24 percent.

Apple has done something central to its corporate strategy.

Apple’s headquarters is in California. By putting an office in Reno, just 200 miles away, to collect and invest the company’s profits, where tax rates are almost zero. Apple has reduced its tax liability. California’s corporate tax rate is 8.84 percent.

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