Recently companies like Apple and Google have come under fire for large scale tax avoidance. For starters tax avoidance is perfectly legal. Why shouldn’t a corporation or an individual for that matter utilize all legal methods to minimize taxes?

If the tax authorities are not satisfied with the amount of money they receive, either change the law to prevent utilizing these tax saving strategies or lower rates to collect more money in total. United States corporate tax rates are higher than many other countries, accordingly, corporations will try to find legal ways to allocate profit to where it is taxed less.

Perhaps Congress can learn from the companies, instead of bad mouthing them, and make meaningful changes to encourage more allocation of taxable income in the United States. Thus every body benefits.

Advertisements