The ethics of Apple Corporation’s lack of tax input into California were brought into question in an April 28 New York Times article featuring comments from De Anza College’s president Brian Murphy.
In an interview with the New York Times, Murphy used Apple as an example of the large corporations in Silicon Valley who are using legal strategies to avoid paying taxes in California to increase their bottom line.
By running some of their revenue collection offices out of other states and countries with low to no tax-rate, Apple is able to save money on its operations world-wide.
Murphy believes these savings come at the expense of California schools.
“I’ll bet every person at Apple has a connection to De Anza,” Murphy said in an interview with The Times. “Their kids swim in our pool. Their cousins take classes here. They drive past it every day, for Pete’s sake. But they do everything they can to pay as few taxes as possible.”
The disparity between opinions on this issue lies in what is deemed ethical versus what is legal. There is nothing illegal about what Apple and other corporations do to keep their tax rates down, but the question remains open as to whether or not it is ethical.
On his nationally-syndicated radio talk-show on April 30, Rush Limbaugh disagreed with the Times article and with Murphy’s comments.
“The Times is just beside itself, and the people who write the story make it clear that Apple is not being patriotic,” Limbaugh said. “There’s a guy who runs a community college near Cupertino, and this guy’s quotes are amazing.”
Limbaugh isn’t the only person who disagrees with Murphy.
The Times article was, “riddled with conceptual flaws and misleading statistics”, according to Tom Blumer, writer for NewsBusters.org.
While there has been criticism, not everyone disagrees with the article or the statements within.
San Jose Mercury News columnist Scott Herhold writes that he feels Murphy has a good point.
“The long-term interests [of Apple] lie in avoiding a country in which public education is crumbling,” Herhold writes.
“We can cheer that Apple has garnered so much profit putting out good products that please so many people. But you have to thank Murphy for raising the hard question: What happens to the public while we celebrate?”
Murphy was out of town and unavailable for comment, but De Anza’s director of marketing, communication, and development, Marisa Spatafore was supportive of Murphy.
“This story is important in terms of raising awareness of the dire budget straights,” she said, “not only at De Anza but facing public education statewide.”
