President-elect Trump’s corporate tax reform expected to have some positive impact on Apple EPS

41 Comments

“Given current speculation on tax reform in the U.S., analysts predict that with all other factors unchanged Apple will see a negative impact on its cash hoard because of a repatriation tax, and an increase on taxes paid to import manufactured goods from China, but an overall slight uptick on earnings per share as a result of all factors,” Mike Wuerthele reports for AppleInsider.

“Apple’s expected overall tax rate is expected to fall to 20% versus the current 35% as a result of the ‘blueprint’ [see link below],” Wuerthele reports. “So, after reform, If the phone were manufactured in the US, the taxable income remains the same at $280, but the lower effective tax rate drops the owed taxes to $56. If the iPhone continues to be manufactured in China, the entire $700 is taxable, but at the lower 20%, ending up in an effective tax on the phone of $140.”

“A proposed repatriation tax of 8.75 percent will cause a slight hit on cash on hand on the books,” Wuerthele reports. “However, the positive impact on earnings per share based on deferred tax liability on the overseas cash no longer making as much of an impact on Apple’s earnings is expected to drive Apple’s earnings per share up, offsetting the complex import tax situation.”

“The tax reform proposal, entitled ‘A Better Way‘ was published at the height of the election process on June 24, 2016,” Wuerthele reports. “It promises simplification of the tax code, and a broadening of the taxable base, alongside a reduction in effective tax rates overall.”

Read more in the full article here.

MacDailyNews Note: “A Better Way” is a proposal from Paul Ryan, the Speaker of the U.S. House of Representatives, and covers: Poverty, National Security, The Economy, The Constitution, Health Care, and Tax Reform. As Wuerthele explains, “Specific figures and any benefits spelled out by the plan are expected to change.”

41 Comments

      1. Sorry, that’s completely fake. Wish DT the best tho. Libs need to accept reality, and hold him accountable like any other president. They don’t like the results? They’re always mid-term elections.

        Reply

        4. It’s the worst kind of fake news. Totally made up, but gets attention from the broad mainstream who don’t normally pay attention to politics.

          If we keep going down this road, and the truth is now irrelevant, we’re in a completely new era.

      4. Totally false, botty. FauxNews botty strike again.

        Botty, posting completely made up bullshit like this demonstrates your disrespect for everyone else. Everyone should be offended by your attempts to sway their viewpoints based upon your lies. Just because you want it to be true does not make it so. It is so simple to do a little fact checking before posting… For example, it took all of ten seconds to find many refutations of your post, such as http://www.snopes.com/harrison-ford-trump-han-solo/.

        Don’t believe botty, folks. He will post anything to try to push his agenda. Just look at botty’s responses when called on his fake post…he has no respect for anyone on this forum. Vote with your time and ignore the asshole.

        By the way, with a three-star average and 39 votes, botty got way too many up votes. Think before you support something.

        Reply

        1. Whether the picture is fake or not is not as disconcerting as your hateful post.

          You are going to tell me and the rest of us what to think, what to believe, how to act and who to vote for!?!

          You base validation on star
          -ratings that can be manipulated by anyone? How clueless! I can vote and revote the same post until the cows come home, but why bother.

          I’ll take free-wheeling speech Botty over your pitiful attempt to silence him. You should be ashamed. But we all know that it is an impossible act for the self-righteous. 😠

    1. Ironically, the BTO song is about avoiding the rat race by being a deadbeat musician:

      It’s the work that we avoid and we’re all self employed
      We love to work at nothing all day

      Reply

        1. We’re both unemployed, botvinnik (a euphemism for retired and useless) so we may as well have some fun. There are way too many long faces around; … not talking about Sarah Jessica Parker particularly since she has devised a new method to avoid the glue factory — accept unflattering roles in movies. It appears that Trumpism, if I may coin a word, has demolished political correctness, indicating that funny jokes can once again be told without fear of opprobrium. It still might take some time to get back to where we once belonged, namely the likes of Lenny Bruce and Henny Youngman:

          In the beginning, God created earth and rested. Then God created man and rested. Then God created woman. Since then, neither God nor man has rested. 🤣

        4. “It appears that Trumpism, if I may coin a word, has demolished political correctness, indicating that funny jokes can once again be told without fear of opprobrium. ”

          PC indeed, died on Election Day. All the Trump podiums on the victory lap tour sported these two words on top, front and center for the cameras, Merry Christmas.

          Wow, that made me feel good. Common sense returns and minority group snowflake identity pandering, ends. Hallelujah!

          “It still might take some time to get back to where we once belonged, namely the likes of Lenny Bruce and Henny Youngman.”

          Archie Bunker may be able to apply for membership to the same club, though not as groundbreaking, except possibly on a weekly sitcom level.

          This post and two others between you and Botty — good to read and love the humor! Finally, we can have fun AGAIN … 😃

        5. n the euphoria of the upcoming inauguration, a caveat: do not underestimate the treachery of the globalists, everything they’ve worked for is at stake. Anything from a false flag “national crisis” to initiate martial law to keep control of the government to outright assassination is not beneath them. Nothing is beneath them, they are demons.

        6. You are right, treachery is all around us, fuelled by the natural human desire for status, power and money. I’ll be watching for attempts to undermine the Constitution. They keep trying, like persistent bank robbers tunneling under Fort Knox.

      1. It kind of detracts from the satisfaction of kicking someone in the nuts when they don’t have any because they’re a woman or a eunich. In a sense, there is no vindication at all. From a Freudian perspective, you have lost because you have failed to arrest the propagation of your antagonists’ offspring. If you let them live, they will bring forth a generation bent on vengeance, and that is bad for business. It pays to think these things through, as Vito Corleone said.

        Reply

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