How Apple could bring overseas cash home to help fix America’s crumbling infrastructure

“Would U.S. companies holding wads of cash overseas be more likely to bring it home if, instead of facing steep corporate tax rates, they could invest part of the money in bonds and help mend America’s crumbling infrastructure?” Ciara Linnane asks for MarketWatch.

“Standard & Poor’s believes they would, and it argued in a new report Wednesday for a program that would allow companies repatriate the more than $2 trillion parked overseas on a tax-free basis, in return for committing 15% of it to investments in interest-bearing infrastructure bonds that would be issued by state and local governments,” Linnane reports. “‘There is bipartisan support, including from the presidential candidates, to address our country’s infrastructure problems, but there is little consensus on how to fill the huge gap between what the government can finance and how much money is needed to pay for these projects,’ Beth Ann Bovion, U.S. chief economist at S&P Global Ratings. ‘Private capital can be part of the solution.'”

“Companies such as Apple Inc. have been holding enormous sums overseas for years, and Apple’s chief executive, Tim Cook, has been vocal about his refusal to repatriate those funds as long as the U.S. corporate tax rate remains at 35%,” Linnane reports. “The opportunity to reap a return on investment rather than lose funds to taxation would be a ‘substantial enticement’ for companies, according to S&P. And the proceeds of bond sales would spur economic growth and create jobs through the ‘multiplier affect,’ said Bovino.”

Linnane reports, “For S&P, the move would merely be the first step in a broader overhaul of the corporate-tax regime that would discourage the kind of cash hoarding that is starving the Treasury of tax monies.”

Read more in the full article here.

MacDailyNews Take: Starving the Treasury of tax monies?”

Puleeze.

The federal government collected a record $3,248,723,000,000 in tax revenue for the 2015 fiscal year, amounting to a whopping $21,833 per worker, according to the Final Monthly Treasury Statement. Of course, the U.S. federal government spent $3,687,622,000,000, running a deficit of $438,899,000,000 for the 2015 fiscal year.

We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much. – Ronald Reagan

26 Comments

      1. Getting high before the job or after the job or getting in a car to drive is dangerous. What you don’t hear about is all the arrests of drivers who use medical portion of the drug and the rest. Remember any type of state job even through a contractors or highway require medical, drug testing and background checks.

      1. Correct.

        And Hill proposes the exact opposite. The rich companies must pay their fair. 🐂💩

        Both JFK and Ronnie proved tax cuts stimulate the economy ranging from the average citizen with more to spend to large corporate expansion.

        Sheesh …

        1. Ya…. I have a bridge for sale to, local services won’t hire you because they want the present crew working because there’s not enough highway money around. Their is not enough money to hire new crews and to buy new equipment as well. Jobs don’t exist unless you work for these private companies and how the bid process goes.

            1. Utterly different circumstances, Barry. I lived through the 1970s and 1980s and the hyper inflation and corresponding high long term interest rates of the early 1980s was completely different than the situation inherited from George Bush with a severe recession and economic stagnation combined with near-zero interest rates. Reagan benefitted from the economic boost of falling interest rates. That type of stimulation was not present in recent times.

              Get over your partisan bullshit and really think about things before spouting off with platitudes.

          1. Right.

            Let me repeat, both JFK and Ronnie cut taxes to stimulate a robust economy.

            I’m not interested in following you into the detail weeds of their methods.

            Got it? Good.

    1. Great idea, then companies who want to have lower taxes would move all their profits through foreign lands to benefit their bottom line. They could farm out every single function to foreign lands to really help the US Treasury. Wow! Good thinking!!!

      1. So why aren’t they all doing that now, seeing as the tax rate (before foreign taxes) is 35%? Why not move their companies entirely ‘off-shore’ and screw the IRS entirely? Then all they’d have to worry about is the taxation from bringing US made profits into their off-shore location? How’s that for good thinking??? Huh huh huh?

        Apple moves in entirety to a de-EUed Ireland. Doesn’t that sound wow?

        #MyStupidGovernment <–That's the problem.

        1. Congress sets the rate the people and Conpanies pay not the IRS. For the last 7.5 years congress failed to change this issue and probably won’t for a while. Apple paid its retail tax and corporate tax due already. The money overseas is retail product sold outside the US in what ever country it sells plus pays the local, retail and corporate taxes due in each country as well. Also, Apple is not the only world company selling product look at all auto companies, catapillet, and other companies so think of all the money existing out of the US. Do not blame Apple but blame Congress for not changing the diaper on the elephant in the room.
          Congress in both the house and the Senate have to there job by coming up with a agreement to change the taxation issues and make it worth while for every company and individual in this country. What also has to change is state and local taxation and there activities of contract or systems and how work is distributed and how many crews or new crews are needed. Sometimes these agencies don’t hire people but keep there existing crews working rather than hire anybody new and this happens.

    1. Yes, by hoarding money and not helping other countries, it will encourage those countries to look enviously at the US and build their militaries (cough China cough Russia cough) and force the US to build its armed forces even more. Of course, those smaller belligerents won’t be a bother (cough Al Qaida cough ISIS cough) because no one will help educate the ignorant populations that they come from and the US ignoring them will not in any way make them hate the US.

      Could it be that spending a few dollars to help educate and befriend the world is far more cost effective than building a huge and technically advance military while making many enemies?

  1. It would take a real congress both house and republicans to sit down and talk to anybody
    Like the President but that’ll never happen unless Donald Duck and friends get elected but
    That will end the world in which the US exists including its citizens healthcare, right of choice and will have the next Great Wall in the world on our southern border and maybe even on the boarder with Canada Bears and and Samoon are free to cross the river except Donald and friends will have the fishing rights. Please think about his concepts and shopping list of programs the Republicans will eliminate if they’re are ever elected to the Whitehouse….

      1. Fortunately, some departments are needed especially in leading in setting standards and leadership like depts of Education and Energy. Otherwise, we have pollution like China. Schools would never have high standards because in all states like southern States VS Coastal stars both east and west. As for HUD, low income people would be living on the streets because they would never be able to afford a house just like returning Vets who are disabled. Stop listening to the rubished from a Republicans and worry about future generations.

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