“Oracle’s co-chief executive Mark Hurd has pledged support to any tax change that allows the company to funnel its huge cash pile back into the United States,” David Reid reports for CNBC. “The U.S. government wants to reduce the federal corporate tax rate to 20 percent from its current maximum level of 35 percent. It also says profits that companies are holding overseas could soon be repatriated at a rate of around 10 percent.”
“Hurd, who has been critical of the Trump administration in the past, said tax repatriation would help his firm make better use of its cash pile,” Reid reports. “‘You see us raising debt in the United States because of our inability to access our cash offshore,’ he said. ‘So the fact that we can repatriate our money allows us a much more efficient use of cash but an opportunity again to invest it back into various things that we do whether its M&A (mergers and acquisitions), new facilities, or hiring more employees.'”
“Despite being pressed, Hurd failed to clarify if the cash would be used to pay off some the company’s sizable debt. But he said Oracle was clearly a company committed to investment,” Reid reports. “The sentiment echoes comments from Apple’s CEO Tim Cook, who said last week that U.S. tax reform is sorely needed and should have been fixed years ago.Apple said in an August conference call that $246 billion of cash, 94 percent of its total, was held outside the U.S.”
Read more in the full article here.
MacDailyNews Take: Once again, we’ll obviously have to wait for the whole thing to shake out and see the actual rates and details. It would certainly be great, and long overdue, if the U.S. can modernize U.S. corporate taxation and come up with a workable solution that benefits the country and U.S. companies and their many millions of employees.
As we’ve been saying for many years now, the U.S. corporate tax rate is obviously way too high and exceedingly anachronistic.
SEE ALSO:
‘Paradise Papers’ leak reveals how the rich use tax havens, from Apple Inc. to Bono to Queen Elizabeth – November 7, 2017
President Trump’s tax plan aims new foreign tax at Apple, other multinationals – October 3, 2017
President Trump’s tax cuts could be YUGE for Apple – September 28, 2017
GOP tax plan calls for cutting the corporate tax rate from 35 percent to 20 percent – September 27, 2017
Goldman Sachs sees $1 trillion in U.S. tax cuts coming – September 20, 2017
Apple will eventually bring billions of dollars back to the U.S. under President Trump’s tax reform plan – July 21, 2017
President Trump’s tax reform plan includes deep cuts in corporate taxes – April 26, 2017
Apple could be primed for profit explosion under President Trump’s big tax cut – April 26, 2017
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
If the rate was the actual rate companies paid then yes it is overdue. However most large companies pay little if any tax due to the loopholes. If course they are not closing those loopholes, they are closing a number for the middle class that affect education, healthcare, adoption etc. but not so much for companies and the rich. 45 alone will get a 5 billion dollar tax cut just from the estate tax alone!
It’s no wonder that you posted this anonymously; there is hardly a word In it that is not either spin, misconception, or outright wrong.
Yes, the rich benefit when you cut taxes for those who earn less than do the rich. Something over 90% of income taxes are paid by the top 5% of income earners; with this tax reform, over 40% of wage earners will pay NO Federal income tax.
Just WHEN will you be satisfied that the rich are “paying their fair share?” Frankly, I think we’re far beyond that point already, and I am in no wise rich.
Fair share will begin when the effective tax rate paid by me is the same as the one paid by Trump. Or Cook. Or Zuckerberg. If I pay 30% on my income, it would begin to approach fair if Zuckerberg also paid an effective rate of 30%.
Luckily for him, he has plenty of convenient deductions he can take advantage of, which lower his effective rate to below 10%. When an average person earns $80,000 in a good year and gives the government $24,000 of that, he is left with only $56,000 to spend on housing, food, clothing, and perhaps entertainment. When Zuckerberg earns $6 billion in a year, and hands over $500 million , that is obviously over 20,000X more than an average person. However, he is left with $5.5B (with a B!) to spend on, what, a private island? Nobody is suggesting that the tax rates for rich should go back to the years of WWII (when rich paid over 80% of their income), but their effective rate should be AT LEAST as much as the guy driving a KIA.
That is the fair share.
Never mind that the top-earning 1 percent of Americans will pay nearly half of the federal income taxes for 2014, the largest share in at least three years, according to a study. The bottom 80 percent of Americans are expected to pay 15 percent of all federal income taxes in 2014, according to the study. – CNBC
The bottom 50% pay zero.
The rich pay all the taxes. It is none of your business what Zuckerberg spends his money on. Your Bolshevik-like class envy is more than a bit distasteful. What, are you from Canada or something?
Did you make up your example? I don’t know anyone making $80k, paying $24k in taxes, unless they’re an independent contractor and have to pay both their contribution to social security and their employer’s contribution. While it is technically a tax, presumably if you live a normal life, you’ll get that money back plus interest.
“most large companies pay little if any tax due to the loopholes.”
Seriously? Most? Little if any tax?
And the repeal of the estate tax won’t give Trump a “5 billion dollar tax cut”.
Good point emmayche – the bottom 50% of income earners pay no tax, so any tax cut will always look like it’s benefiting higher income earners because they are the only ones paying it.
But, the White House correspondent used a great illustration of a bunch of beer drinking reporters to illustrate the progressives view of the tax code and what happens when the “rich” decide to pack it in and move leaving the rest of us to hold the bag.
If all of us are equal under the law, then none of us should be punished for having earned more as long as it is legal. Taxation should be part of our civic duty to provide necessary services (particularly those enshrined by the Constitution) but it should not be a device to pick winners and losers.
As we have seen throughout our history (including 8 years under Obama), trying to pick winners and losers mostly ends up picking losers and the taxpayer is on the hook for it all.
Case in point, Obama pushed some of the most restrictive carbon dioxide emission regulations ever and was ready to sign on the Paris accord – which any honest observer realized that it would have done absolutely nothing to reduce CO2 – it was symbolic at best, and an economic nightmare at worst.
But since Trump pulled back from the Paris accord, relaxed rules on coal and eliminated a lot of EPA regulations, you know what happened? Our CO2 emissions went down. The market selected solutions that were more economical and better for the environment.
That’s how America likes to win. That’s what the new normal should be.
“But since Trump pulled back from the Paris accord..”
I consider this the best thing Trump has done so far.
The SCOTUS pick was pretty sweet …
Can you point me to data showing our CO2 emissions decreasing? I have not read this. Just the opposite in fact.
I can point to this fact:
Syria plans to join Paris climate accord, leaving U.S. as lone outlier
Syria was the last U.N. member state not to have signed the accord after Nicaragua did so last month.
Corporations have their best shot in eight years to stand together behind President Trump and support tax reform. Park all the petty identity politics and agree when you find common ground.
Time is ripe to Tweet, Tim …
Corporations will benefit. Middle class will get shafted. Watch and see.
Sane repatriation tax yes!
Sadly, the ‘tax reform’ (more like deform) bill is riddled with budget busting giveaways to our 1% overlords, the people who have the very least need for more money. It’s merely more Neo-Feudalism at work. Feed the rich; Screw the poor. We The little-peon-serfs (formerly ‘People’) are not represented by this latest attempt to further gut the soul of the United States of America.
Make Aristocracy Great Again. 🖕💩
[And no kiddies, you don’t have to be a ‘libtard’ to resent a political con-job when you see it.]