Apple’s Special Irish Tax Breaks

[Commentary] There seems to be no end to the resourcefulness of multinational companies when it comes to minimizing taxes -- or of countries that help them do so.

The latest evidence is a preliminary finding by the European Commission that Ireland provided extravagant tax benefits to Apple that appear to have allowed the company to reduce its tax liability, possibly by billions of dollars since 1991. Whatever Ireland’s rationale, lawmakers around the world have not cracked down on -- and in some cases encouraged -- aggressive tax avoidance by big corporations. That is why the European Commission’s letter, which shows some overdue resolve, is important. But Europe’s efforts, however welcome, are not sufficient by themselves. Lawmakers around the world must agree not to compete by offering relative tax advantages that hurt everyone. And they must tighten rules that let multinational companies avoid paying the taxes they owe.