Apple, a California based company, avoids paying billions by opening up subsidiaries in tax-free or low-tax states and countries. The company routes transactions through other countries such as Luxembourg and Ireland, where taxes are much lower than the Unites States. By doing so, Apple increases its profit; however, the billions in tax dollars which aren’t paid to the state of California result in limited funding for public schools and universities in the area.
Shifting operations to Reno, Nevada was also done with the same purpose: to avoid California’s high taxation. How is it fair that a multibillion dollar company is taking away money from the state in which it prospered? Apple still contributes billions to the state of California; however, due to the size of the company the contributions could be much greater. Even though this tax avoidance is legal and practiced by many American companies it still remains unethical, and Apple, as being one of the most profitable companies in American history can afford to be fair and pay proper taxation, which will in turn profit the citizens of California.
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