Will Apple's Profits Be Investigated Next?
|Earnings Before Tax||$18.94B||$7.96B|
|Effective Tax Rate||42.20%||24.22%|
I wouldn't want to give Obama or Congress any ideas, but in the first quarter of 2011, Apple was more profitable than ExxonMobil based on both having a higher profit margin (24.27% vs. 9.30% for Exxon) and higher profits per employee ($128,470 vs. $127,392 for Exxon). In addition, Apple's effective income tax rate was only 24.22% compared to Exxon's 42.2% rate, so it must be getting some very generous tax breaks and subsidies?