Taxes
Recently there was a high-profile story about Apple and the tax responsibilities that they avoid by moving business and paperwork to states other than California and countries other than the US. Here's a quote from the The New York Times article
...with a handful of employees in a small office here in Reno, Apple has done something central to its corporate strategy: it has avoided millions of dollars in taxes in California and 20 other states.
Warren Buffet and Stephen King have also written recently, urging government to tax the rich among us more heavily for the greater good. Here's Buffet on how he feels the super rich are being treated:
These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.
Today I just saw an article about Facebook co-founder Eduardo Saverin and his recent decision to renounce his US citizenship (presumably) in order to avoid some of the tax responsibility from his Facebook earnings post-IPO.
Is this fair? No. It’s worse than that, though. It’s ungrateful and it’s indecent. Saverin’s decision to decamp the U.S. suggests he’s got no idea how much America has helped him out.
What they seem to be saying
For Apple, the Times seems to be suggesting that they are shirking their tax responsibility. While none of their actions are illegal, most people would agree that Apple is taking steps to avoid as much tax responsibility as they can.
As far as Buffet and King are concerned, it could be said that if one is "super rich" and wants to pay more taxes, there is nothing in the way of these folks .
Finally, with Saverin, his decision to jump ship in order to avoid some pretty serious tax liability seems on the outside to be unfair.
What I’m thinking about it
There is a thread to be found here, something about the dichotomy between private citizenship and the perceived responsibility to "do right" in the public eye.
I think I disagree with the TImes, Apple shouldn't be responsible for "doing right" regarding taxes, they should take every opportunity they can to pay fewer taxes and lawmakers should do their best to provide them fewer opportunities to do so.
I think I agree with Buffet and King, that we should adjust tax code so that the super rich pay a larger percentage of their income.
I also think that Saverin was just making the most financially reasonable decision - surely it would be difficult for anyone to make the decision to pay more than $600 million in taxes if there was another option on the table.
Bottom Line: Taxes are weird.
