Google's chairman says he is "proud" of the way his company avoids paying taxes.
"It's called capitalism," Eric Schmidt told Bloomberg in a Wednesday article. "We are proudly capitalistic. I'm not confused about this."
"We pay lots of taxes; we pay them in the legally prescribed ways," he said. "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."
Bloomberg reported on Monday that Google avoided paying $2 billion in global income taxes last year by housing profits in Bermuda, which has no corporate income tax. Google already had been paying a 2.4 percent overseas tax rate through tax avoidance strategies, according to a 2010 Bloomberg report. Its overall effective tax rate was 22.2 percent in 2009.The Huffington Post
Google Chairman Eric Schmidt Defends Tax Dodge: 'It's Called Capitalism'
I thought Eric Schmidt was a smart guy. That was a very stupid thing to say.