is now 
Four tech giants, Microsoft, Hewlett-Packard, Apple and Google, faced questions by the Senate subcommittee this month about sheltering their overseas profits from United States Taxes.
Senator Carl Levin, D-Michigan, chairman of the subcommittee, says American corporations house nearly $1.7 trillion offshore and sees this tax avoidance as a transfer pricing scheme.
Senator Tom Coburn, R-Oklahoma, says the maneuvers constitute ‘properly legal tax avoidance, ‘which is the fiduciary duty of all companies to their shareholders.
William Sample, Vice-President for Worldwide Tax at Microsoft said, “the United States international tax rules are outdated and not competitive…which is a disincentive for U.S. investment.”
Sample went on to say that one of its centers in Puerto Rico has a long history of offering tax incentives to attract export business. Is it time the United States addresses its “exceedingly complex” tax structure and makes it competitive in a global business arena or are mega-companies just taking advantage of tax loopholes? Let us know your thoughts.
SOURCE: Sept. 20, 2012 Wall Street Journal
