“While the administration has not yet determined a rate at which those funds could be repatriated, Trump’s proposal unveiled Wednesday promises a ‘one-time tax on trillions of dollars held overseas,'” Linnane reports. “U.S. companies had about $1.3 trillion in cash held in overseas accounts at the end of 2016, according to Moody’s Investors Service.”
The following are the five companies with the biggest sums sitting overseas:
1. Apple has the most cash overseas of any U.S. company at about $230 billion, according to Moody’s Investors Service. Apple Chief Executive Tim Cook has said he would be willing to bring that money home if it were not subject to the current U.S. corporate tax rate of about 35%.
2. Microsoft: $113 billion.
3. Cisco: $62 billion.
4. Oracle: $52 billion.
5. Alphabet: $49 billion.
Read more in the full article here.
MacDailyNews Take: As we wrote yesterday, we’ll see where it all ends up (the corporate tax rate won’t end up being 15%, but it may end up being 20-25%, which is certainly better than the stifling 35% it is now).
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
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