“Apple hasn’t exactly seen eye-to-eye with president-elect Donald Trump, responding dismissively to Trump’s call for a boycott of Apple products, and witholding support from the GOP convention,” Ben Lovejoy reports for 9to5Mac.
“But it seems they do agree on one topic: allowing companies to repatriate profits from overseas subsidiaries at a reduced rate of tax,” Lovejoy reports.
“Apple has repeatedly called for tax reform to permit this, and last month Trump promised (video below) to do so while speaking at the Economic Club of New York prior to the election,” Lovejoy reports. “As of its latest earnings report, Apple had cash reserves of $237.6B, much of which is sitting overseas.”
Read more in the full article here.
MacDailyNews Take: As we’ve stated many times: Obviously, U.S. corporate taxes are too high.
Under the current U.S. corporate tax system, it would be very expensive to repatriate that cash. Unfortunately, the tax code has not kept up with the digital age. The tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free flow of capital… Apple has always believed in the simple, not the complex. You can see it in our products and the way we conduct ourselves. It is in this spirit that we recommend a dramatic simplification of the corporate tax code. This reform should be revenue neutral, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the U.S. We make this recommendation with our eyes wide open, realizing this would likely increase Apple’s U.S. taxes. But we strongly believe such comprehensive reform would be fair to all taxpayers, would keep America globally competitive and would promote U.S. economic growth. – Apple CEO Tim Cook, May 21, 2013
SEE ALSO:
Apple may repatriate billions of dollars next year after new U.S. President takes office – September 1, 2016
With next U.S. President, Apple’s cash may soon be on its way home – August 25, 2016
Apple CEO Tim Cook presses for U.S. corporate tax reform, says no repatriation without fair rate – August 15, 2016
Donald Trump plan calls for cuts in corporate taxes, personal income tax rates – August 9, 2016
Apple CEO Tim Cook has billions of reasons to raise money for the GOP – June 29, 2016
Debt-free Apple to take on debt to avoid huge U.S. repatriation tax hit – April 26, 2013
c’mon baby bring that money home! Finally someone in office that knows how business works and can fix loopholes!
He would probably tie it to obligating Apple to manufacture their products in the U.S.
Bringing the money home implies that it will be INVESTED here at home, which for a manufacturing company like Apple means jobs for people. If you’re smart, you don’t just let money sit around.
Enjoy that well deserved 35% tax to bring your awesome products into the US Cook,cannot wait to see how brilliant Cook handles this one haha.
Talk about putting lipstick on a pig.
(Hey, now just hold on there, self.)
The funny thing is, Trump doesn’t have a plan. He was elected by the GOP to rubber stamp the same obstructionist and backward policies that plunged the USA into multiple offensive foreign wars and a 2008 financial implosion.
Repatriation of cash with a one-time deal does absolutely nothing to solve the massive debt problem, nor the problem that it appears most voters are concerned about: getting a good paying job when the only job training they’ve taken in the last 20 years is reality television and facebook.
America just cut off its nose and its right arm to spite its face.
Because Trump has proved so far he’s a toady of the Republican Party and followed party lines? Get real. The Republicans were rightly scared by DT. Time will tell.
Proof of that is former president, CIA George Bush, voted for The Clot. This election was not about republican vs democrat, it was globalism vs American sovereignty. It was Thomas Jefferson vs George Soros.
“a new world order is fading from view…”
George Soros or Mitt, or Koch brothers or any other 1%’er have no worries and will do well as they have always done, the Americian Rust belt not so much.
Trump may be an isolationist fool like you, but that doesn’t stop him from importing wives from abroad, buying and operating businesses overseas, purchasing materials from China, and catering to foreign visitors to his resorts. Trump is just as much a globalist as any other modern businessman, it’s just that he has fooled the idiot class that he is somehow different.
Let’s not forget that Trump is a democrat in wolf’s clothing. Bot has been taken by his bombastic rhetoric of the last 2 years, but if you look at what Trump has actually done and promoted in the past, it’s completely classic NY democratic policies.
Won’t you be in for a shock when you realize you voted for someone who actually shares no fundamental values with you. His fiscal and diplomatic policies, if enacted, would be death to the USA. Depending on issue, his social agenda is all over the liberal side of the map.
You may hope that Trump can work with the republican congress, but based on his warm rapport with ANY government official who actually has work experience, Trump is going to get stonewalled just like Obama. If anything ever gets done, it will only be from the old guard of the formerly grand old republican party working in the shadows outside of Trump’s media show. Trump is too busy stroking his own ego to actually execute policies that make sense, or work with anyone who knows what they are doing. Everything he has said and done in his life is in direct contrast to the platform that the republicans wrote and posted on his website — and still the republicans were dumb enough to vote for the fool.
Let’s remember that Trump lost the popular vote. He has no mandate except that poor old bitter people want someone to do something great, whatever that means. I expect that the republican party will lose congress in 2 years and republicans will be working hard behind the scenes to marginalize everything Trump stands for.
Apple and other companies who care about an open business market will accelerate their plans to leave the USA for countries that actually welcome trade and the fundamental human right to move, work, and live where the individual feels welcome. Walls hurt people inside the wall more than those outside.
“a new world order is fading from view…”
For once Eugene, I agree with part of your post. The new world is fading and we are going back to the dark ages. #NotMyPresident
I am surprised you support the globalist political philosophy of George Bush I and its iterations in Bubba, Dubya, The Muslim and The Clot. The Dark Ages were initiated by feudalism, which is precisely what globalism is….you would make a fine serf.
However, the American electorate and Donald Trump have stolen your “dream,” bozo. Deal with it, it’s “reality.”
Eugene: Just as 13 colonies joined together many years ago to form a united group with shared and common goals, the European countries are trying to follow suit. The next stage in mankind’s development is to unify the world in a similar way that the United States of America did. The world already uses the US dollar as a defacto global currency. English is the language of business, diplomatic discourse, aviation, navigation, and much of higher education.
Imagine if the US strove to bring the world together under a common agreed upon set of laws and one protective armed force that all countries supported. The unleashing of human potential released from militaristic and nationalistic ideologies would spur forth incredible wealth and human advancement. Isn’t that a much better vision of the future rather than fear and greed?
“The next stage in mankind’s development is to unify the world in a similar way that the United States of America did.”
Wrong. The creation of the United States was from free choice, the implementation of the “new world order” is a coercion from unelected banking cartels. Hence, tyranny. Yesterday, like Brexit, the American voter, by free choice, rejected your “next stage in mankind’s development.” You’re full of crap.
Remind me again, what was the US Civil War about again? Didn’t some colonies get forced back into the US?
You mean that Republican president that saved the Republic while the Democrats founded the KKK? You mean that Civil War, dickhead?
Actually, the more apt analogy is that we just cut off our head in an attempt to cure our brain cancer.
I’m about ready for Apple to kick Cook out. Anyway, doesn’t USA have highest corporate tax rate in world?
While the US MAY have the highest tax rates on record, the rate companies actually pay.. called “the effective tax rate” is actually in line with other developed countries.
Third highest:
United Arab Emirates – 55.0%
Puerto Rico – 39.0%
United States – 38.9%
No, America does not have the highest corporate tax rate. Moreover, the loopholes are so many, no corporation actually pays the nominal rate. Corporate tax contribution as a percentage of government revenue is the lowest it has been in modern history.
But don’t think that personal income taxes are making up the difference. Those are also at historic lows, and of course the income tax is littered with loopholes there too.
This is why the USA is in massive debt, and why local and state taxes are rising dramatically to shore up the infrastructure that the feds used to fund.
1. Only 10%? Guess that means the US still won’t have enough $$ to repair our crumbling infrastructure.
2. Apple isn’t going to give this windfall to its store employees, but will use it for huge bonuses to the upper folks at Apple.
3. So much for “Trickle Down”.
Bagging groceries gets old doesn’t it?
lol
So many prognosticators here. I wonder what their success rates will be?
Time will tell… or maybe not.
they gotta be a helluva lot more accurate than RealClearBias’s presidential polls. 🙂
Check out Scott Adams blog–(Dilbert Creator)
http://blog.dilbert.com/post/152734465316/unhypnotizing-a-clinton-supporter
As long as this is a permanent change and not another dumbass ‘holiday’, then hurray!
Imagine, the biggest boon for AAPL might just be President Donald J. Trump.