Bloomberg has an excellent article describing how Google saves billions in taxes. Besides showing how Google constructs its international network of tax dodges (similar to what other high-tech companies use), the article discusses how taxes helped to create the company and how the federal government gave its blessing to the Google racket. I assume that I will also see the article tomorrow when my BusinessWeek arrives.
The article has too much in it to cull snippets. Here is the source so that you can read it for yourself:
Drucker, Jesse. 2010."Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes." Bloomberg (21 October).