BlackRock to ask how Apple, S&P 500 companies would use cash from U.S. tax holiday backed by President Donald Trump

“BlackRock Inc will scrutinize how companies plan to use the cash they bring back to the United States as part of a tax holiday backed by U.S. President Donald Trump, CEO Larry Fink said in a letter distributed on Tuesday,” Trevor Hunnicutt reports for Reuters. “Companies such as Apple Inc, Pfizer Inc, Microsoft Corp hold nearly $1.8 trillion overseas, Moody’s Investors Service Inc estimated last month. By doing so, they avoid a 35 percent U.S. corporate tax rate.”

“BlackRock oversees $5.1 trillion in assets, ranking as a top shareholder of many of the world’s largest companies. It votes on the composition of those companies’ boards as well as on governance proposals from management and shareholders,” Hunnicutt reports. “‘If tax reform also includes some form of reduced taxation for repatriation of cash trapped overseas, BlackRock will be looking to companies’ strategic frameworks for an explanation of whether they will bring cash back to the U.S. and if so, how they plan to use it,’ Fink wrote in an annual letter to the CEOs of the S&P 500. ‘Will it be used simply for more share buybacks? Or is it a part of a capital plan that appropriately balances returning capital to shareholders with prudently investing for future growth?'”

Hunnicutt reports, “Fink, who had donated to Democratic presidential candidate Hillary Clinton, recently joined an advisory council to Trump that includes several other CEOs.”

Read more in the full article here.

MacDailyNews Take: Could not shareholders themselves use said capital to prudently invest, or even – gasp! – spend (buying major appliances, building additions/homes, buying cars, boats, homes, etc. and, BTW, paying taxes on most if not all of those purchases), thereby stimulating economic growth? Companies’ investments are not the sole lever of growth.

And, again, as we wrote last September: Let’s not do another “one-time-only” (smirk) repatriation holiday. Let’s fix the broken U.S. corporate tax code instead. Let us eschew the easy way out, that fixes nothing in the long run, and choose to do the hard work instead.

BlackRock loads up on Apple shares ahead of earnings – January 25, 2016
BlackRock founder Sue Wagner joins Apple’s board of directors – November 17, 2014
Sue Wagner joins Apple’s Board of Directors; Bill Campbell retiring after 17 years of service – July 17, 2014


  1. Of course, foolish Fink, as Hillary backer, cannot fathom how putting more cash into shareholders’ pockets would stimulate the economy big league. Democrats do not understand how capitalism works which is why they always fail — unless, like Bill “Cigar in the P—y” Clinton (funny didn’t see any Libs marching in the streets over that) — they are forced to follow conservative policies due to election results).

    In other news, President Donald Trump will sign two executive actions on Tuesday to advance construction of the Keystone XL and Dakota Access pipelines.

    This is a great first step, but now make the penalties for destruction or attempting destruction of pipelines extremely harsh (which would have the added benefit of getting the nuttiest of the Dem/Lib/Prog nutballs either behind bars or into severe financial distress via huge fines).


      1. that is thinking short term,

        longer term we should be asking, “why pump america dry first”?

        especially when oil is pretty damn cheap compared to not so long ago – in large measure because we are pumping oil and gas like crazy and as a result are contributing to driving down the price of those energy commodities – in part to cripple russia economically – which they are not going to forget. come a day and pay back will be a bitch !

        lets not wantonly deplete our resources when we can use other peoples oil, at low prices – at least while they are low.

        there will always be a need and for petroleum products in the american economy. it isn’t going to go away, but after we exhaust our own oil and gas resources after selling it at rock bottom prices, such as it is now, then who benefits ?

        the gulf states and russia, both of whom have extremely large reserves, both of whom will be delighted to see us go dry and then up goes the prices and we go bankrupt. unless we have invested, large scale, in renewables.

        going for a short term gain does not always work out so well

  2. Thank you MDN. It bears repetition:

    Let’s not do another “one-time-only” (smirk) repatriation holiday. Let’s fix the broken U.S. corporate tax code instead. Let us eschew the easy way out, that fixes nothing in the long run, and choose to do the hard work instead.

    No stupid ‘holidays’. FIX IT! Get that money working inside the USA.

      1. Pay attention. I’ve already said something nice about him. TPP is DEAD. Hurray! It was raw corporatocracy attempting to ruin democracy across the world. Good riddance.

        I’m also NO fan of illegal aliens and the non-enforcement of immigration laws in the USA.

        Meanwhile, we have a narcissist for President and a certifiable sociopath as Speaker of the House. That’s bad. The fact that they occasionally get things right doesn’t solve their problems and the effect of their problems on my country.

        This is Idiocracy.

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