Trump’s corporate tax-cut pitch falls flat in Silicon Valley

“Republican Donald Trump is proposing a big tax cut for companies like Apple Inc., which would see its tax rate slashed on about $200 billion of profit it keeps offshore,” Lynnley Browning reports for Bloomberg. “Yet Apple’s boss is co-hosting a fundraiser on Wednesday for Trump’s Democratic opponent for the White House.”

“Cook’s support for Clinton, who hasn’t tried to match Trump’s tax cuts for corporations, reflects how the Republican nominee’s proposals haven’t won him much support among U.S. technology leaders — many of whom have expressed concern about his campaign-trail bombast,” Browning reports. “Trump’s tax plans call for ending deferral and cutting the top corporate tax rate to 15 percent. For the trillions in offshore profit that U.S. companies have already accumulated, he suggests the one-time tax rate of 10 percent — a bargain that he says would lure that cash back to the U.S quickly and deliver economic growth as well as tax revenue for infrastructure spending.”

Donald Trump
Donald Trump
“Clinton hasn’t proposed anything similar; she’s said little about corporate tax reform or the current 35 percent corporate rate, which is one of the highest statutory rates in the world,” Browning reports. “In a July 29 research note, Tobias Levkovich, the chief U.S. equity strategist at Citigroup, estimated that Apple had $214.9 billion in offshore cash; Microsoft Corp. had $108.9 billion; Cisco Systems Inc. had $57.2 billion; and Alphabet Inc. had $45.4 billion. ”

“Cook told CBS News in December that he would ‘love to’ repatriate Apple’s offshore earnings. ‘Why don’t you?’ interviewer Charlie Rose asked. ‘Because it would cost me 40 percent to bring it home,’ Cook said — evidently adding state taxes to the federal tax rate. ‘And I don’t think that’s a reasonable thing to do,'” Browning reports. “This summer, House Republicans released a blueprint for a major corporate-tax overhaul that would create a repatriation tax rate of just 8.75 percent. The GOP plan would also move the U.S. toward a ‘territorial’ approach to taxation — meaning companies would owe taxes only on their domestic income. (The U.S. is the only developed economy that uses a so-called worldwide tax system.) The House tax plan was released just four days before Cook hosted another political fundraiser. That one was for House Speaker Paul Ryan, the Wisconsin Republican who has made overhauling federal-tax policy a top policy priority.”

Read more in the full article here.

MacDailyNews Take: 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

SEE ALSO:
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
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
Intel CFO: Obama repatriation tax proposal ‘lipstick on a pig’ – February 4, 2015
U.S. Congress, Obama take Apple CEO Cook’s advice, eye corporate tax changes – February 3, 2015
Obama targets foreign profits with tax proposal, Republicans skeptical – February 2, 2015
Senator Rand Paul finds Democratic partner for tax repatriation holiday – January 30, 2015
Businesses hopeful Republican control of U.S. Congress will break tax-reform gridlock – November 5, 2014

[Thanks to MacDailyNews Reader “David E.” for the heads up.]

48 Comments

  1. Guess Silicon Valley doesn’t care about bringing those billions home, they just want cheap foreign labor at all costs, so American Citizens that they would have to pay more can go pound sand..

      1. If only Trump would rest quietly once in a while. He says so much stupid stuff that it is taxing to wade through it on a daily basis.

        Face it, he likes the sound of his own voice more than anything else. Hypothetically, if Trump were to win the election (and he won’t), he would hate the job because then he would be expected to work and watch him mouth, neither of which would be pleasant for him. The last thing that you want is another George Bush who gets rid of anyone who dares to disagree. Look what happened during the Bush years…you know, the eight years that you pretend never happened?!

        1. I agree with KingMel…

          …Trump says so much stupid stuff and Clinton does so many stupid and illegal things…

          Also

          …The last thing that you want is another Obama who gets rid of anyone who dares to disagree with him. Like the 10 generals that have been fired. Some disagreed with Obama’s rules of engagement in Iraq and Afghanistan. Did you know more of our military have die under Obama because of his rules of engagement than under Bush?

    1. Farage is a semi-alcoholic idiot. He’s an extreme nationalist who took UKIP to the verge of being the second National Front – fascist, racist and elitist. He’s also a quitter (sort of like Palin, but not as intelligent – and that’s saying something).
      I love it when people like botvinnick (who regularly on this board insults non-Americans who comment) then shows his utter ignorance of foreign politics and politicians.

        1. Nothing in your post indicates that anything in my post was wrong, botvinnick. Are you paid by the word or just the number of insults you post? Or are you just drunk like your new hero, Farage?

          1. Farage is actually a really good guy. He ‘quit’ recently because he’s spent decades getting the UK to a point where it would leave the EU. And it has voted that way. Leaving can take up to two years, but they’ll do it.

            The Truth of the Matter is that you don’t know what you’re talking about.

            As for Trump, who knows what will really happen if he ends up winning. We know what Clinton will do – a third disastrous term of the Obama administration except much worse because Hillary is, well, Hillary.

            Trump could be middle of the road, he could be great, or he could be much worse.

            Whichever person gets voted in, I pray for the USA – they’re going to need divine help to survive the madness of either administration.

  2. American companies and their shareholders, in general, want skilled labor as CHEAPLY as possible. That’s a main reason why Tim Cook, Apple and other tech firms are not supporting Trump – they want unlimited H-1Bs, so they can pay Ajeet from India half what they’d have to pay Tom from Tulsa who can’t find a job after graduating from college and has to live in his parents basement because Apple got Ajeet from India to do it on the CHEAP.

    H1-B visas for skilled workers DO NOT EQUAL uneducated illegal aliens streaming across the southern border intent on cashing in on American taxpayer’s largesse while setting up shop in the domestic drug trade and/or other crimes (gangs, rape, robbery, etc.).

    Trump is for upholding the laws already on the books designed to protect our borders.

    Donald Trump’s official policy:

    Increase prevailing wage for H-1Bs. We graduate two times more Americans with STEM degrees each year than find STEM jobs, yet as much as two-thirds of entry-level hiring for IT jobs is accomplished through the H-1B program. More than half of H-1B visas are issued for the program’s lowest allowable wage level, and more than eighty percent for its bottom two. Raising the prevailing wage paid to H-1Bs will force companies to give these coveted entry-level jobs to the existing domestic pool of unemployed native and immigrant workers in the U.S., instead of flying in cheaper workers from overseas. This will improve the number of black, Hispanic and female workers in Silicon Valley who have been passed over in favor of the H-1B program. Mark Zuckerberg’s personal Senator, Marco Rubio, has a bill to triple H-1Bs that would decimate women and minorities.

    Requirement to hire American workers first. Too many visas, like the H-1B, have no such requirement. In the year 2015, with 92 million Americans outside the workforce and incomes collapsing, we need companies to hire from the domestic pool of unemployed. Petitions for workers should be mailed to the unemployment office, not USCIS.

    End welfare abuse. Applicants for entry to the United States should be required to certify that they can pay for their own housing, healthcare and other needs before coming to the U.S.

    Jobs program for inner city youth. The J-1 visa jobs program for foreign youth will be terminated and replaced with a resume bank for inner city youth provided to all corporate subscribers to the J-1 visa program.

    Refugee program for American children. Increase standards for the admission of refugees and asylum-seekers to crack down on abuses. Use the monies saved on expensive refugee programs to help place American children without parents in safer homes and communities, and to improve community safety in high crime neighborhoods in the United States.

    Immigration moderation. Before any new green cards are issued to foreign workers abroad, there will be a pause where employers will have to hire from the domestic pool of unemployed immigrant and native workers. This will help reverse women’s plummeting workplace participation rate, grow wages, and allow record immigration levels to subside to more moderate historical averages.

  3. Trump is a liar,bigot,racist and an idiot. Companies need off shore tax reductions to bring the money back here. But they don’t need tax reductions that effect what they pay for business here. Middle income people need the tax relief here not big business or the rich. Middle income and poor need pay raises that put them in some kind of zone so they can afford housing and just plain living. Corporate execs got 985% raise, where the average worker got less then 6% raise.
    Do you think that’s fair? The reason he wants the tax relief is only for himself. He could care less about anyone else.
    Without immigration there would be no United States of America. That’s what are country is made up of, immigrants!
    Your family history I’m sure goes back from someone that was not born here.

    1. I’m sorry, I’m tired of people saying “without immigration there would be no United States.”

      That was like 100-200 years ago. We “were” immigrants just like every freak’n country in the world. How the hell do you think civilizations came about. Ugh!!!

      Look, I’m all for immigration but at what point does my family get to call themselves American’s? Six-eight generations born in this country, then we are?
      And while I’m at it, my family who are AMERICAN’s have never owned a slave, at least on this continent (can’t exactly say ever because every civilization has had slaves). Stop asking me to pay for things in the past that my family had no part of.

      Move on already. Talk about immigration as it is now. Talk about diversity and real race issues with actual meaningful goals. Talk about education, meaningful welfare reform, job creation, and the stuff we need today.
      Bringing up shit from 100-200 years ago and using that as the crutch of why people can’t grow is tiresome. BLM is bullshit, ALL LIVES MATTER!!! Stop blaming the cops. Learn the value of life and others lives.

      Move to where there puck will be…… Ugh!!!!!!

      1. the facts regarding the history of immigration into the United States that you seem to disdain is that those ethnicities from past immigration came to our shores and borders LEGALLY. Also, they came to be a part of the American dream, not to destroy it through their own despicable sharia laws.

        see the difference?

            1. Your post is again completely irrelevant to my post that it supposedly responds to. And again – are you paid by the word or just the number of insults you post?

        1. That is an amazingly broad statement, botty, considering that many immigrants arrived when there were *no* immigration laws at all! By default, I suppose you classify that as “legal” unless you consider their intrusion into the established presence of the Native Americans, who were, in turn, immigrants to North America starting tens of thousands of years ago. Furthermore, not all immigrants have become part of the American dream. And all U.S. citizens are governed by federal, state, and local laws.

          I would love to see you reconcile your love of fresh farm produce and cheap construction labor with your dislike of immigrants. Hypocrisy, thy name is botty (and you have a lot of company).

            1. Your childish frustration is revealed once again, botty. You would make an interesting case study for abnormal psychology.

              It humors me to irritate you with the truth. It is so incredibly easy to tear you apart, day after day.

            2. Your “truth” is the fetid, Pavlovian urinalism force-fed into your malleable skull from years of Yellow Stream Media revisionism….now, get in your beg position and gulp down your latest “treat” from CiaNN and The Washington Compost…good boy.

              You’ve lost all semblance of critical thinking.

  4. Looks like Cook et al, unlike Trump, recognize that changes to the Tax Code start in the House of Representatives. That’s why Silicon Valley hosted a fund raiser for Paul Ryan as well as the one for HRC.

    Trump is so far our of his depth. He is not used to having to deal with people who can’t be intimidated by a lawsuit or kept in place through a monetary settlement with a non-disclosure provision. Backbone in those around him just confuse his world view. Wait ’til he tries “Your fired!” on Ryan or McConnell. His head will just explode.

  5. Obviously Cook is more concerned about LGBT faux rights expressed by the Dems than Apple’s business interests. Thats why he gets a grade of C- and why Apple is tanking or stagnant.

  6. Trump is about the last person I would ask for tax advice. The guy can’t even balance his own checkbook, I seriously doubt he has a clue how to reform the tax system in a way that doesn’t bankrupt the USA as he has done so many times.

    MDN is a little off the mark when they contend in a blanket statement that corporate taxes are too high. In reality, no company pays book value because we have allowed corporate lobbyists enormous latitude to carve all kinds of loopholes and incentives into the tax code. So rather that simplistically lower rates for the companies that are already hoarding enormous piles of cash, the reality is that the entire tax code needs to incentivize domestic reinvestment. Neither corrupt political party seems capable of even presenting a coherent plan to do this. Nor does either corrupt party bother even pretending to talk about retiring national debt or balancing the budget — things that average citizens are forced to do if they want to maintain a roof over their heads. The disconnect between unfettered spending (yes, even by all the the recent Republican-led congresses) and the lost revenue from inefficient and counterproductive and gerrrymandered tax code is one of the central problems of our time.

    1. Was your tower bought with Daddy’s money like the one in Manhattan? According to Forbes, if Trump had simply invested his inherited wealth into funds indexed to NASDAQ, he would have about twice as much money as he does now. In other words, Trump Enterprises have been only half as profitable as the AVERAGE company on the index… even with the propensity of the companies to shortchange vendors and declare bankruptcy. On the whole, I would rather trust Tim Cook’s views on tax policy to those expressed by Mr. Trump and his supporters.

      As for immigration policy, consider this: near the beginning of the Great Depression, an eighteen-year-old woman who had $20, no job prospects, and no skills except as a maid was admitted to the USA. Despite the highest unemployment in American history, she survived by accepting wages and working conditions that no citizen would have tolerated (thus contributing to the citizen unemployment rate). In due course, she married the son of a man who had fled prosecution in both Germany and Canada before settling in New York with his German-citizen wife. The non-citizen maid’s eldest daughter was eventually appointed a federal appeals judge by Bill Clinton, while one of their sons inherited the family business and married two non-citizen wives. One of his daughters is married to the grandson of a couple who came to this country as penniless refugees. Mr. Trump does know the real story of immigration to America, but he chooses to reject his own history.

      Again, I think that Apple and the other multinational tech firms are more knowledgable then Mr. Trump about the impact on the American economy if they are forbidden to freely transfer employees between the countries where they do business. That would just add to their existing problems of being unable to freely transfer funds, and the anticipated problems of being unable to freely transfer goods and services if free trade breaks down. If, as reported, Clinton is receiving $200 in contributions from Apple employees for every $1 given to Trump, that says a lot about their perception of the situation/

      1. “…as a maid was admitted to the USA…”

        I assume you mean by “admitted” she was a legal immigrant. Trump has no problem with any legal immigrant, nor do I.,,but I DO have a problem with serial liars such as yourself who attempt to use sophistry to twist the truth, to attempt to persuade citizens that Trump’s policies would “crush” the aspirations of your “poignant maid story.”

        go fück yourself.

        1. Yes, Comrade Botty is being paid (perhaps in rubles) by the mindless insult.

          My point was that under the current law, much less Mr. Trump’s proposals, his paternal grandparents could not have entered the US because his grandfather would not have passed the background checks–he was expelled from Germany as a draft dodger and tax evader. Mr. Trump’s mother could not have entered because she had no visible means of support. When these folks entered, essentially the only qualifications for “legal immigration” we’re the ability to pass a cursory physical exam at Ellis Island or another point of entry and the ability to pass as exempt from the Chinese Exclusion Acts. Under our much more stringent current policies, the candidate’s parents would never have been in this country. He owes his very existence to immigration policies that he rejects.

          I will note that the 200 to 1 disparity in political contributions at Apple is reasonably typical in the tech industry. In the defense industry, the retired generals and arms merchants (not a very liberal lot) are contributing about twice as much to Clinton as to Trump.

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