This is one of those things that drives me batty. A sloppily written story
from Bloomberg implied that Google's effective tax rate is a mere 2.4%, and the blogosphere swallowed
. It should take anyone that isn't a moron no more than 20 seconds to pull up Google's audited financials
and see that their effective tax rate has been between 22 - 28% for the past 3 years, but people are dumb and gullible.
So where did that number come from? It's basically a recycled Bloomberg story. They did a marginally interesting story
in May about transfer pricing, and when they crunched the numbers they found that income that had been routed to Ireland would ultimately be taxed at 2.4% by Ireland (12.5 statutory rate less deductions for fees paid to Bermuda). They recycled that 2.4% figure back into the Google story, and voila! Dipshits all over the blogosphere - even congresspeople
! - are vomiting back that piece of crap that they gulped down without thinking.