“If Trump enacted his promised corporate tax reforms, Apple would likely repatriate the bulk of its $230B cash reserves held overseas, and see its profits jump by 16%,” Ben Lovejoy writes for 9to5Mac. “The prediction was made by Citi [analysts who wrote], ‘Trump’s tax reform plans include reducing the corporate tax rate from 35% to 15% in the US, and applying a tax of only 10% to the profits of US companies that want to repatriate cash being held overseas… The proposals would make it likely that Apple would move its foreign cash back to the US in order to pay the least amount of tax. In the most recent quarter, Apple said it was holding $246 billion in cash, of which $230 billion was held in foreign subsidiaries.'”
Lovejoy writes, “The combination of the two would have a significant impact on earnings per share, says Citi… ‘Our analysis show a reduction in US tax rate will drive 6% benefit to EPS while a cash repatriation holiday and share buyback could drive an incremental 10% EPS benefit (assuming 25% of repatriated cash used for stock buy back).'”
Read more in the full article here.
MacDailyNews Take: As we’ve been saying for many years now, the U.S. corporate tax rate is way too high. Obviously.
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:
Analyst: Apple could double dividend, buy Netflix with repatriated cash under President Trump’s U.S. corporate tax changes – March 17, 2017
Apple raises $10 billion in debt ahead of President Trump’s repatriation tax plans – February 3, 2017
After Apple’s blowout earnings, the Street looks toward ‘iPhone X’ and President Trump’s tax reforms – February 3, 2017
President-elect Trump’s corporate tax reform expected to have some positive impact on Apple EPS – January 14, 2017
Exploring Apple’s tax situation under U.S. President Donald Trump – November 21, 2016
Morgan Stanley: Apple stands to benefit the most from President Trump’s corporate tax plans – November 11, 2016
Apple and U.S. President-elect Trump: Can a tax cut for overseas cash heal wounds? – November 10, 2016
Donald Trump plan calls for cuts in corporate taxes, personal income tax rates – August 9, 2016
Barring a tax holiday, Apple will need to raise over $50 billion in debt the next 2 years – July 15, 2016
Cramer: Apple’s Tim Cook is ‘patriotic’ on taxes – December 21, 2015
Apple CEO Tim Cook is absolutely right – and wrong – on U.S. corporate tax policy – December 20, 2015
Apple CEO calls corporate tax rap ‘total political crap’ – December 18, 2015
Apple avoids $59.2 billion U.S. tax bill – October 7, 2015
U.S. companies now have $2.1 trillion overseas to avoid corporate taxes – March 4, 2015
Never gonna happen. “The Resistance”, aka the Democratic Party, will take Trump down and destroy our economy with it. The administration is in disarray, the resistance is winning, and America will suffer.
Wrong
tRumps incompetence and traitorous ties are what is going to bring him down. The administration is in disarray because he has no concept of how to run a country.
About that economy. I guess us Democrats destroyed the economy so well the last 8 years after bush that the stock market tanked all the way up to 20,000. A record. Thanks Obama.
About the economy. I guess we also destroyed the economy great employment numbers.
Are you delusional or just plain stupid, or a member of the tRumpanzee human centipede?
Oddly, I was just making a post about FUD below! What an excellent demonstration.
https://en.wikipedia.org/wiki/Fear,_uncertainty_and_doubt
The hidden logic used by the corporation is “the lower the taxes, the stronger the economy.” This, of course, is a lie. The lower the taxes, the poorer city, county, state, and fed. services become. This is because governance will be unable to pay to maintain all of the aspects of infrastructure from fire departments to sewer pipes, from highways to natural habitat for endangered species. The police would be eliminated.
Of course, we know that the goldilocks tax level for the corporation is zero tax, the ultimate goal. This would mean no infrastructure, no social services, no police. The corporation would thereby be justified to create its own police, make its own roads and highways, and develop its own infrastructure. If the corporation pays no taxes, then normal people would also refuse.
I think Somalia is an example of no government. No Western corporation wants to move there because it provides the most minimal of infrastructure for the distribution of corporate goods and virtually no protection in route.
No taxes is not my ideal.
you. are. an. idiot.
That would be YOU!
hey stupid, look up how much corporate taxes pay for infrastructure and civic services, such as the police and fire departments…I’ll give you a hint: it’s the same as your fücking IQ.
I know reality is lost on you but to be so naive to think that taxes, corporate or personal, isn’t used for infrastructure or for police or roads boggles my mind.
you have no mind to boggle, Raychiss.
Corporate taxes in the United States do not finance the infrastructure (highways, bridges, airports, etc.) excise taxes on gasoline, excise taxes on property, excise taxes on vehicle tags and registration do.
Corporate taxes in the United States do not finance civil services such as police, fire departments, ambulance services..state income taxes, federal income taxes, property taxes do.
You are one dumb mothafücka, Raychiss.
LOL… that’s Mister Motherfucker to you. simple minded fool.
and you remain incorrect regarding corporate taxes, Raychiss.
So brainiac, where do these untold hundreds of billions of dollars go? What are they used for?
that would be a fine homework assignment for you Mista’ Dumb Mothafücka.
LOL again. Homework done. I saw the sign on the side of the road where they were doing freeway construction with FUNDS FROM THE FEDERAL GOVERNMENT.
Poor pathetic sadvinnik… the world is changing around and all you can do is swallow another load from the segment of centipede in front of you.
You have NEVER read such a sign except on interstates and NONE of that money was from corporate taxes, you stupid, racist, lying mothafücka.
you’ve become tedious.
What a job that must be making sure that taxes from different sources aren’t co-mingled.
You have always been tedious.
That’s Mister Dumb Motherfucker. I did enjoy your mother though. she told me how you dropped into the toilet at the outhouse at the trailer park, so she had to take you home.
Corporate taxes are an illusion. Individuals pay them indirectly through increased cost passed along during the procurement of goods and services. Employee pay them through lower wages, on which they are taxed again.
Corporate taxes are regressive. The consumption of goods and services takes a disproportionately larger percentage of income from the middle class and especially the poor.
This is why the term “progressive,” used in the political sense, has always seemed oxymoronic to me. How can a true progressive argue for a tax policy that ultimately hurts the less well off?
Two points:
1. While it may be true that corporate taxes get passed through to individuals, those individuals may not be—and usually are not—located in the same jurisdiction as the company. Who, then, is supposed to pay for the government services (police, fire, roads, hospitals, courts, etc.) that the national, state, or local governments provide to the company?
2. Perhaps it is true that corporate taxes are recessive, but much less so than sales taxes or residential real estate taxes. In order to have a truly progressive tax structure that more heavily taxes the individuals who are most able to pay, we would have to shift from those other funding sources to a personal income tax. To be progressive, the tax would have to levy much higher effective rates on wealthy individuals. I can’t see any tax code “reform” that could get support from Republicans in Congress and the White House that does not lower taxes on the most wealthy individuals.
“but, but, but…it’s Trump! no, no, no! He’s da’ debble!”
– Pipeline Timmy & His Social Justice Warrior Band
idiots.
I think we need to learn to ignore people like botvinnik or first, then. Based on some prior posts, it became clear that they are in fact elderly white men, and that demographic is largely getting more and more sad as they watch America change into something they no longer recognise. They grew up in the 60s; this was probably the most eventful decade of the last century, with explosion of economic growth, manufacturing chugging along after a decade of massive expansion during the 50s, and major events, such as the space race (and the Vietnam war) defining the American culture and identity. Being young adult in the 70s meant enjoying freedoms and excesses under the umbrella of high taxation and the public spending it afforded the country.
Being a white man in your seventh (or eighth) decade of your life, especially if you grew up in the culture that encouraged you (as a white man) to feel invincible, superior, omnipotent and the one true representation of your glorious land, cannot be easy today. With men marrying men, blacks getting elected to public office (including the presidency), foreigners increasingly keeping their ethnic and cultural heritage (rather than assimilating white American culture), it is obvious that you will feel under threat, and that you will defend your turf, regardless of how irrational (and even racist) it might be today.
And let us not forget the stereotypical “Get off my lawn!” mentality of people in their retirement age. Their politeness filter has been clogged for a very long time, they have no use for a concept of being considerate. Sixty years of being considerate and polite, biting your tongue, performing mental and verbal gymnastics in order to say what you mean without coming across as [insert negative attribute here — racist/bigot/mysogynist, etc] was more than enough for them and they no longer need to do this, now that they are retired, without boss to report to, without anyone else in a position to make a decision about their fate.
So, as annoying, ans often ignorant as botvinnik can be, we should simply ignore him the same way we ignore that crazy embarrassing old uncle in the family who keeps nagging about anything and everything.
Alinsky 101, per usual.
I had no clue who you were talking about, so I googled him. My point is quickly and clearly proven (“Get off my lawn!” syndrome…).
yeah, right, Draghead.
Ignore us at your own peril.
Or what big man?
Or you’ll lose another election, bigot.
LOL.. so rethought your threat, did we?
There was never a threat from me, only in your own mind. I said what I meant and meant what I said. Take it as you wish.
Typical leftist knee-jerk reaction.
sooooooo if I ignore you human centipede trumpanzees I won’t be in peril?
So it was an idle threat from another “small” hands tRumpanzee.
Peril – Noun
serious and immediate danger
Peril – Verb
expose to danger; threaten
So I guess that just makes you uneducated and you are having trouble with those big words.
I get it now.
and this isn’t knee jerk:
Ignore us at your own peril.
SAD!
sure…. and yes, I will never be tolerant of liars and the incompetent sexual predator in the white house. I wouldn’t expect any reasonable people to tolerate it.
Well said and spot on.
And curiously enough, after a long time of having Trump in his user name, and then even in his avatar, botvinnik suddenly, quietly and inexplicably went back to his original NY Yankees avatar — no sign of Trump in the name any more.
It is quite clear that something had happened in Washington that made him take such a radical step and obliterate all signs of Trump from his avatar (and user name). Curious…
uh, we won. you lost…it was in all the papers.
I saw that too. I hear withdrawing from tRump and your position in his human centipede chain is hard but botvinnik has taken the first step. That is always the hardest.
..and you will continue to lose..although, there’s not much left in elected government for you to lose.
Let’s review, Raychiss:
• The White House
• The Senate
• The House
• The Supreme Court
• The Governorships
• The State Houses
you have Rachel Maddow and Chuck Schumer.
You are an infantile shit stain
lol, yet you STILL lose. Keep talkin’.
LOL… I guess you take what crumbs you can.
You are the authority on crumby, Raychiss.
Buyers remorse is something you will get over with time. You life will still remain pathetic and you cannot stop society from progressing and changing.
lose, lose, lose…keep talkin’ Raychiss and there will be no Democrat Party in 2020.
Hmmmm. If three million more voters voted for a democrat (and which one, let’s not forget) over Trump, I’m struggling to see a scenario in which your Democratic party would actually lose the majority of American voters, let alone disappear from your political scene.
Demographic changes are irreversible (the wall won’t help one bit), immigrants, blacks, Hispanics are all rapidly growing their share of the population, and your conservatives have yet to decide if they even want to bother reaching out (politically) to these voters, who will then continue to vote for the progressive / liberal candidates.
Redrawing districts will end up being the only way conservatives can hold onto seats in congress, unless they decide to figure out how to attract non-whites. And even among those whites, as they move into big cities, they quickly switch to liberal. It is very easy to develop fear (and hate) of immigrants and non-whites when you never met anyone of them. It becomes much easier to support them when your friends and colleagues are among those (for now) minorities.
And let us not forget; in 2015, there were more non-white babies born in America than white, and the numbers of non-white births continue to increase. IN 2033, vast majority of these will be Democratic voters (again, unless republicans change their approach).
Republicans can continue to use various methods to tilt elections in their direction (gerrymandering, redrawing counties to dilute minority votes, strategically campaigning for the electoral college), but it is virtually impossible to imagine they will ever again have the majority of the popular vote, and it is also increasingly difficult to imagine them ever again winning the presidency, with their current political platform.
So, congrats on the big win in November and enjoy it to the fullest for the next two years!
They have a whopping 17 Governorships! They control a dominant 6 States (Governor and legislatures)!
Everyone loves them.
heh…does that include The Muslim Usurper’s ALL fifty-seven states?
Who is we? and who is you??? I didn’t lose anything, (and if you are referring to some contest, I wasn’t in one, nor was I voting in one).
And on an unrelated (and unanswered) matter, it is still curious how botvinnink’s user name and avatar proudly showed his support for Trump, only to be completely wiped out without explanation. I wonder what was it that Trump has done (or said, or failed to do or say) yesterday that had broken the camel’s back, as it were… Perhaps something to do with Syria? Or inviting the Egyptian dictator to the White House? Something else…? Curious…
It would also blow a massive hole in the deficit and debt of these United States.
Do not believe the dynamic scoring (wishful thinking) that Paul Ryan and other Koch servants keep pushing. Supply Side does not work- just take a look at what has happened in Kansas since they elected Sam Brownback Governor.
Republican dogma will get you a quick pop sugar high and they always hope to be out of town when the bill comes due. Taxes are the price of government services just like the bill at your local Bistro pays for the dinner you just ate. Politicians who tell you that you can get something for nothing- regardless of party- are bullshitting you. That also applies to Agent Orange, who has staffed up with Wall Street insiders and Koch Brothers acolytes.
And meanwhile we hear that Apple’s profits would plummet if The Trump put in place his border taxes and/or forced Apple to have their gear manufactured in the USA at USA wages.
∑ = The “U” in FUD.
https://en.wikipedia.org/wiki/Fear,_uncertainty_and_doubt
Any reduction in corporate taxes is passed on to consumers by forcing them to pay more taxes to make up the difference.
You apparently don’t understand the New Math, that it is possible to:
(1) lower taxes for everyone;
(2) increase spending massively for defense and infrastructure;
(3) make no cuts in Social Security or Medicare; and
(4) eliminate not only the deficit, but even the national debt.
All at the same time.
I would put in a /satire tag, but there are millions of people who apparently think that is not only possible, but easy.