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The Editors

Apple’s Taxes Expose the Rotten U.S. Code

When Apple Inc.’s chief executive officer, Tim Cook, bragged to a U.S. Senate subcommittee this week about his company’s culture of innovation, he probably hoped people would think of Apple’s gadgets, not its tax strategies.

That seems unlikely, at least for now. Apple has opened a new front in the battle between corporations that aggressively avoid U.S. taxes and lawmakers who want to collect more of them. In so doing, Apple has made the case for why Congress must update the tax code.