“Apple Inc., which holds $102 billion in cash and investments outside the U.S., will suggest changes to corporate-tax laws to encourage companies to bring more cash into the country,” Adam Satariano reports for Bloomberg.
“The current 35 percent corporate-tax rate is too high for companies to pay when bringing money back from overseas, Cook was quoted as saying by the Washington Post,” Satariano reports. “Apple is facing U.S. government scrutiny after Cook unveiled a plan last month to return $100 billion in cash to shareholders via dividends and buybacks through 2015. Rather than using cash overseas that will be taxed, Apple is borrowing money for the payout, saving as much as $9.2 billion in taxes, according to Moody’s Investment Services.”
Satariano reports, “At the end of its last fiscal year, Apple had $40.4 billion in cumulative earnings outside the U.S. on which it hadn’t paid U.S. taxes. If that was brought back, Apple would owe $13.8 billion.”
Read more in the full article here.
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Compendium of rules in a socialist’s playbook.
1) Always use taxation as a blunt tool.
2) There’s no such thing as too much tax.
3) If you don’t impose a heavy enough tax burden on the productive members of society, you’re not flaying them enough for their efforts. They should feel the ends of your whip as you flail them.
4) Reward the lazy by doling out unemployment benefits, welfare checks and housing assistance because you cannot afford to marginalise your voters.
5) The rich are scum and should be made poor by taxation.
6) Money is free because it doesn’t come directly out of your pocket – some rich son of a bitch will pay for your entitlement program.
7) If the money runs out look for loopholes in the taxation rulebook to impose arbitrary taxes. See rule #2.
8) If you run out of money and the tax paying donkeys are worked to the bone and can’t pay any more taxes, borrow. Piling on debt is a good thing because like the air a socialist breathes, debt is free.
Derp derp derp derp derp derp derp derp derp derp derp derp derp … Taxes… derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp … Welfare checks… derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp … Social inequality is healthy… derp derp derp derp derp derp derp derp … All people without money should be entitled to nothing … derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp derp … All with money should be terrified of being poor like more and more are becoming … derp derp derp derp derp derp derp derp derp derp derp derp derp derp
BLN, you sound like Fwhatever. This is not a ‘socialism’ thing. The GOP has been just as bad as the Dems about borrowing and spending money. The GOP just targets the money towards different groups and activities.
The first step towards progress is getting past this ideological BS that is clouding the minds of so many people. You could help by not propagating it.
Yup. Even though I am generally a conservative I do have my liberal moments. Just depends on the subject. But we have had crooks from both sides of the aisle. I certainly don’t like the one that we have running things now. Scary.
Points for honesty
Sure. I try to always be honest and forthright. And boy does it piss em off here sometimes! Eyow!
Ya gotta love it
1) That’s right, taxes didn’t exist before Obama, As Rush stated this past week, Obama is the architect of the IRS.
2) Actually, for republicans, any tax is too much tax.
3) Again, any tax is to much tax for republicans even as corporations move jobs overseas and keep non-taxed profits overseas.
4) That’s right, it’s both Obama’s fault for the unemployment, even before he became president as well as people who prefer to be unemployed earning $1000.00 a month while their expenses average at $1500-2000 per month. Don’t forget about that drug test the freedom loving republicans impose on you for those benefits. We know this is true on account of all those employers that call Rush telling him they can’t find people willing to work for $15-20.00 an hour.
5) The rich are scum because that want the poor to pay federal taxes by having a flat tax rate that everyone pays the same tax rate (15%) no matter if you’re making $14 million a year or making $14K a year.
6) Everyone pays for entitlements, including SS, Medicare and unemployment benefits. The poor pay fed taxes it just gets returned to them at the end of the year. Even then, they’re still poor.
8) Tax paying donkeys like Mitt Romney paying 13.7% on 14 million dollars? As well as many corporations paying very little in taxes because of tax loopholes. The republicans didn’t have a problem with Bush spending the surplus on tax cuts that sent the US into soaring deficits for nearly 7 years of the Bush admin. The republicans didn’t call Bush a commie, Socialist or the like when he was destroying the US economy, but a patriot. Don’t forget about that war for oil in Iraq.
Apple pays what tax is legally due. They made the offshore money and were taxed on that in the countries in which they did business. Why should they owe the USA anymore of their money.
Exactly! Apple cannot and should not bail out the USSA. Congress should learn to live within its means.
BLN et al are paid by the RNC. Wanna deny it guys? Meanwhile, why should Apple not pay taxes when we must? Don’t be hypnotized by the large numbers.
All the employees pay taxes, sales taxes are collected on all the products. We need value added taxes not blanket taxes on profits. The pragmatic reason, however, is that these crazy high corporate taxes push business overseas. It’s that simple.
Another day of record gains in the stock market except for Apple. I hope everyone has been diversified with their holdings for the last 8 months. And it doesn’t matter where you look or what you have held, practically everything has gone up ; Disney, Google, Priceline, Costco, Amazon, Netflix. Even Microsoft! And the ytd gains are unbelievable in almost every stock out there! Damn, even BlackBerry is up nearly 100% since September! Dell is up over 50% since September! I’d take my profit on many of these at this point.You’ll be able to buy them cheaper a little ways down the road. My AAPL money from last September has been in DIS,COST,NFLX,GOOG and PCLN until today. Sold em all. Follow the basics of investing. Never be greedy. Learn to take your profits when you’re ahead. Always diversify. I’d like to get into AAPL again but I think it’s a little too soon. May see $400 again. Remember, you don’t have to make the first 10% or the last 10%. Who knows what will happen next Tuesday when Tim is before Congress? I hope he does well. But that doesn’t mean that the stock won’t drop temporarily. Apple needs to get its mojo going somehow. They had better come up with something very positive at the WWDC next month!
Tim Cook speaking before Congress is terrifying. Instead of just Apple stock dropping, the value of the dollar might drop and the US credit rating might be lowered again.
It will be interesting. I guess it will be on C-SPAN? I’ll try to catch it if possible. I’m guessing that he is being prepped for this appearance by a team of professionals. But politicians being politicians, there will be at least one who will want to show off for all of the crazy liberal wackos out there. Although maybe Tim can pass out some of that 160 billion before his appearance? You know, just to smooth things out a little bit. Put the audience at ease. Calm down the politicians. Just saying.
Only if you sell. I got quite a big dividend check from Apple today..
This is great news. Tim Cook has legislative aspirations. Maybe he’ll resign and run for office.
He’s too honest to be a politician.
Points for honesty
Surely there is a difference between France, England, Canada… And the Caïman Island and the like. Please define offshore…
And ocean.
Offshore money is money not in the USA or it’s protectorates.
Speculation like I’m about to engage in will no doubt brand me as a Tim Fanboy or an Apple Senior Management fanboy, but so be it:
Do you suppose that the real reason Apple has decided to borrow money (and take a tax deduction on interest paid) in order to pay dividends and retire stock is to force Congress into acting on this tax issue? What better way to go testify about the absurdity of the current system than to publicly use it to its utmost… after having paid (what was it last quarter?) 28% effective tax rate… after having paid 1/20th the entire total of corporate tax assessed by the federal government?
To sit before the senators and say: “We pay every dime of tax we owe. You set the rules for what we owe. You set the rules for what we get to deduct. You set the rules for what we pay when we move money earned elsewhere into this country. Sort it out, boys, and let us know what you decide. But quit calling us dishonest: We pay every dime of tax we owe. We will always play by the tax rules established by the country in which we reside. [threat received?]”
I really like your theory. CEOs of successful companies, especially those with assets attractive to salivating politicians scrabbling to prevent a shaky economy from ruining their reelection hopes, have real leverage and would be remiss not to exercise it, especially those who have little to lose, in a pecuniary sense (Chief Executives these days are set for life). Your scripted testimony is an excellent start. Should tax penalties be reduced as a result, I have no doubt that Apple Inc. would make good on its word, repatriate the cash, and initiate a copycat flood of capital movement from like-minded sudden patriots.
Makes sense
Tim will teach them.