Photo: Bloomberg News
The perfect example of why the President is way of the mark with his "tax the rich" song and dance. The solution to the problem of deficit reduction is NOT in taxing the rich more, but rather in changing the tax code to close loopholes and putting an end to those clever deductions that many affluent and big businesses use to avoid paying their fair share of taxes.
A perfect example is that of Google. Google chairman Eric Schmidt has insisted that he is "very proud" of the company's tax structure, and said that measures lower it's payments were just "capitalism".
Mr Schmidt's comments risk inflaming the row over the amount of tax multinationals pay, after it emerged that Google funnelled $9.8bn (£6.07bn) of revenues from international subsidiaries into Bermuda last year in order to halve its tax bill.
However, Mr Schmidt defended the company's legitimate tax arrangements. “We pay lots of taxes; we pay them in the legally prescribed ways,” he told Bloomberg. “I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.”
“It’s called capitalism,” he said. “We are proudly capitalistic. I’m not confused about this.”