Also Hillary Clinton and Donald Trump. An article at The Guardian explains how tax avoidance works:
This squat, yellow brick office building just north of Wilmington’s rundown downtown is the registered address of more than 285,000 companies. That’s more than any other known address in the world, and 15 times more than the 18,000 registered in Ugland House, a five-storey building in the Cayman Islands that Barack Obama called “either the biggest building in the world, or the biggest tax scam on record”.I am so very, very, very tired of this. It's been going on for generations and will never end because the wealthy and the corporations of this country own the politicians who make the laws that enable these arrangements. Let's call it what it is - pure bullshit.
Officially, 1209 North Orange is home to Apple, American Airlines, Coca-Cola, Walmart and dozens of other companies in the Fortune 500 list of America’s biggest companies. Being registered in Delaware lets companies take advantage of strict corporate secrecy rules, business-friendly courts and the “Delaware loophole”, which can allow companies to legally shift earnings from other states to Delaware, where they are not taxed on non-physical incomes generated outside of the state.
The loophole is said to have cost other states more than $9bn in lost taxes over the past decade and led to Delaware to be described as “one of the world’s biggest havens for tax avoidance and evasion”.
But it’s not just big corporations that have chosen to make 1209 North Orange their official home.
Both the leading candidates for president – Hillary Clinton and Donald Trump – have companies registered at 1209 North Orange, and have refused to explain why...
Several accounting experts said there are many legitimate reasons why US and foreign companies incorporate in Delaware, particularly because of its highly respected Court of Chancery and business-friendly state government. The process of setting up a company in the state can be completed in just a few hours and requires less paperwork than registering for a library card in the state. There are more than 1m companies registered in the state – more than Delaware’s population of 935,000.
It's not even secret. And it will not end under a Clinton or a Trump or a Cruz or a Kasich presidency.
The counterpart to these domestic loopholes is the holding of assets overseas.
I know I'm repeating myself, but...More than any other American company, Apple holds $181.1 billion in offshore accounts, according to a Tuesday report released by Citizens for Tax Justice, an advocacy group.Other major American tech firms—including Cisco, Google, Hewlett-Packard, and Oracle—are among the largest companies that are using legal but questionable tax tricks to keep money overseas and effectively pay little to no American federal corporate taxes...
"Losing $90 billion of potential tax revenues every year is a very big deal," Neil Buchanan, a professor at George Washington University, said... Politicians who respond to proposals to fund these programs by saying that ‘we can't afford it’ are simply saying, ‘I'd rather cut Apple's tax bill than educate our children.’"...
"US corporate tax collection as a percentage of GDP is currently at an all time low. This means the U.S. government has to compensate for the shortfall from other sources (read: domestic taxpayers with no multinational activity) and cut public spending. There is, of course, an alternative: to change the law so Apple actually pays taxes on this income. In current Congressional environment, this will happen immediately after hell freezes over."
It just never ends.