“Like many technology companies, Apple has resisted transferring the money it earns abroad back to the U.S. to avoid triggering corporate income taxes on the earnings,” Boston reports. “Instead, the Cupertino, California-based company invests in corporate bonds and other assets like money market funds and U.S. Treasuries. With more than 90 percent of its war chest abroad, the company regularly issues bonds of its own to help fund programs like share buybacks and capital spending.”
“Apple and other cash-rich companies are holding out, hoping that they may soon be able to bring their cash home at a lower tax rate,” Boston reports. “President Donald Trump’s tax plan includes a repatriation provision, though it didn’t specify a rate. He proposed a 10 percent levy when campaigning, and Treasury Secretary Steve Mnuchin has said the rate would be ‘very competitive.'”
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MacDailyNews Take: Free money.
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