“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.
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