“Apple took several jabs from Trump over the past year, and there are a few policies that could directly affect the company. It’s worth noting that Trump reportedly holds millions of Apple shares, so any of the following proposals would directly impact his portfolio as well,” Neiger reports. “Let’s take a look at two key proposals and why Apple is likely to remain steady under President-elect Trump.”“Trump said, ‘I want to see the day when Apple makes its products on our land. We’re going to bring our jobs back to this country.’ That’s not all that unique of a proposal,” Neiger reports. “Apple jobs were actually brought up in the 2012 campaign election as well. And when President Obama met with Silicon Valley leaders in 2011, he asked the late Steve Jobs what it would take to bring iPhone manufacturing jobs back the U.S. Jobs simply replied, ‘Those jobs aren’t coming back.’ So, while U.S. presidents love to pitch the idea of Apple bringing most of its manufacturing back to the states, it’s not likely to happen.”
“President-elect Trump has said about overseas profits, ‘We’ll bring it back, and it’ll be taxed only at the rate of 10% instead of 35%. And who would bring it back at 35%? Obviously nobody, because nobody’s doing it… Apple, unsurprisingly, wants this as well. The company has lobbied for tax reforms in the past, namely because it has about $200 billion in cash overseas. Apple CEO Tim Cook said that the company hasn’t brought foreign profits back into the U.S. because the tax rate is simply too high,” Neiger reports. “Apple, unsurprisingly, wants this as well. The company has lobbied for tax reforms in the past, namely because it has about $200 billion in cash overseas.. With Republicans gaining control of the House, Senate, and the White House this time around, it seems very possible for them to implement it if they really want to. That would clearly be a good thing for Apple and its investors.
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
President-elect Trump on repatriation taxes on September 15, 2016:
Apple could be able to pay just 10% tax to repatriate overseas profits under President Trump’s plan – November 9, 2016
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