Apple plans new U.S. campus, to pay $38B in foreign cash taxes • Hacker News Board

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#51

Post by matmann2001 » Wed, Jan 17, 2018, 8:01 PM UTC

nodesocket wrote: post #42

All the comments seem to be sketpical or negative. I think it's funny if you go back right before tax reform passed and look at all the comments on articles here on HN almost all were blasting tax reform. Saying it won't work, it does not help the economy, does not create jobs, and repatriation only leads to stock buybacks and executive bonuses. So far we've seen company after company giving substantial bonuses to al…

Tax reform isn't the force driving Apple to do this.

Apple is doing these things because they believe it will eventually help their bottom line. That's how corporations work and make decisions.

Granted, tax reform may have been a contributing factor in opening the door to this type of reinvestment in the US, but it is way too early to declare these actions by Apple as a victory for tax reform.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#52

Post by coolso » Wed, Jan 17, 2018, 8:01 PM UTC

matthewmcg wrote: post #15

mudil wrote: post #4

"Apple Plans to Pay $38 Billion in Repatriation Taxes. " Imagine headline like this under Obama, how much praise he would get.

You could also write the headline as "Most Profitable Company on Earth To Receive $42B Repatriation Tax Break"

By the same token you could also rewrite a lot of comments in this thread, possibly including yours, as "Trump's Tax Bill Is Having Positive Effects Despite The Narrative And I Don't Like That".

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#53

Post by eridius » Wed, Jan 17, 2018, 8:02 PM UTC

downandout wrote: post #36

I find it fascinating that a tax plan proposed by a President reviled throughout the Valley is the one thing that finally convinced Apple to repatriate much of its overseas cash and invest it here in the US. They of course give no credit to him in this press release, but the proof is in the pudding. Of the many heavy handed ideas and efforts made by the previous administration to convince Apple to do this, exactly 0…

Once corporations have exhausted their large hoard of overseas cash, the amount they repatriate will go down significantly. So isn't this really just a short-term boost?

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#54

Post by bob_theslob646 » Wed, Jan 17, 2018, 8:03 PM UTC

>Apple is already responsible for creating and supporting over 2 million jobs across the United States and expects to generate even more jobs as a result of the initiatives being announced today

What percentage of jobs of these are full time versus part time?

Why do large corporations and politicians love to toot their horns about 'jobs', but refuse to go into details?

Oh wait, there public.

>Employees:As of September 30, 2017 , the Company had approximately 123,000 full-time equivalent employees.(http://investor.apple.com/sec.cfm?DocType=Annual&ndq_keyword...)

123k divided by 2 million equals 6.15% of employees are full-time, whereas 93.85% are part-time.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#55

Post by adventured » Wed, Jan 17, 2018, 8:03 PM UTC

samfisher83 wrote: post #26

adventured wrote: post #13

Earlier quoted context omitted.

From the link: "Apple will spend an estimated $55 billion with US suppliers and manufacturers in 2018"

How much of that is made here? If you look at their ICs even if its an American company most of their chips are made in Taiwan. For example apple might design CPU here, but its made in Hsinchu.

Very likely an impossible number to unravel (without Apple providing the detail). Their cost of revenue for 2017 was $144b out of $229b in sales.

How much room is in there for $50b in the US and all manufacturing overseas? It would seem theoretically possible to fit all of that in. Here's their supplier list:

https://images.apple.com/supplier-responsibility/pdf/Apple-S...

3M for example has six US location references. Broadcom has two US locations. Corning has one. Flextronics has one US location. Intel has three US locations. Samsung has one US location listed. Texas Instruments has several. And so on; about 40 locations in all.

Does it add up to $50 billion in real US manufacturing and supplier activity? Who knows.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#56

Post by rdtsc » Wed, Jan 17, 2018, 8:04 PM UTC

southphillyman wrote: post #45

nodesocket wrote: post #42

All the comments seem to be sketpical or negative. I think it's funny if you go back right before tax reform passed and look at all the comments on articles here on HN almost all were blasting tax reform. Saying it won't work, it does not help the economy, does not create jobs, and repatriation only leads to stock buybacks and executive bonuses. So far we've seen company after company giving substantial bonuses to al…

To be fair the bonuses I've heard about have been laughable so far and accompanied by large lay offs in two cases (Walmart and Comcast).

> I've heard about have been laughable so far

Having been poor, then living on $750/month in US for many years, a $1000 bonus is not life changing but also not laughable.

The companies certainly didn't have to give those and could have pocketed all of it.

> large lay offs in two cases (Walmart and Comcast).

Are those because of the tax incentives?

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#57

Post by akvadrako » Wed, Jan 17, 2018, 8:05 PM UTC

gjacolby83 wrote: post #47

downandout wrote: post #36

I find it fascinating that a tax plan proposed by a President reviled throughout the Valley is the one thing that finally convinced Apple to repatriate much of its overseas cash and invest it here in the US. They of course give no credit to him in this press release, but the proof is in the pudding. Of the many heavy handed ideas and efforts made by the previous administration to convince Apple to do this, exactly 0…

Apple is a one of a kind company. In my opinion, I don't think most US Corporations are concerned with the needs of the many.

Apple is a significant percentage of the economy all by itself.

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#58

Post by nodesocket » Wed, Jan 17, 2018, 8:05 PM UTC

southphillyman wrote: post #45

nodesocket wrote: post #42

All the comments seem to be sketpical or negative. I think it's funny if you go back right before tax reform passed and look at all the comments on articles here on HN almost all were blasting tax reform. Saying it won't work, it does not help the economy, does not create jobs, and repatriation only leads to stock buybacks and executive bonuses. So far we've seen company after company giving substantial bonuses to al…

To be fair the bonuses I've heard about have been laughable so far and accompanied by large lay offs in two cases (Walmart and Comcast).

Bank of America, AT&T, Comcast, Walmart, Jetblue, Southwest are just a few who announced $1,000 bonuses. Not laughable to middle class Americans. Aren't middle class who liberals fight for?

Source: http://money.cnn.com/2018/01/11/news/economy/tax-law-raises-...

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#59

Post by IBM » Wed, Jan 17, 2018, 8:05 PM UTC

downandout wrote: post #36

I find it fascinating that a tax plan proposed by a President reviled throughout the Valley is the one thing that finally convinced Apple to repatriate much of its overseas cash and invest it here in the US. They of course give no credit to him in this press release, but the proof is in the pudding. Of the many heavy handed ideas and efforts made by the previous administration to convince Apple to do this, exactly 0…

Nobody had to convince Apple or any other company to do anything. The repatriation is deemed, i.e no company has a choice in it. And while you may believe it was "proposed" by Trump, it has actually been in the works for years by both parties in Congress and by Obama [1]. They could just never pass a bill (because what else did you expect with Obama in the WH and Republicans in control of Congress) because Democrats wanted to spend it on infrastructure, and Republicans wanted to cut taxes for corporations, which is what they ended up doing. The repatriation of Apple's overseas cash would have happened regardless of who became President.

[1] https://www.reuters.com/article/us-usa-budget-tax/obama-targ...

Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes

#60

Post by protomyth » Wed, Jan 17, 2018, 8:05 PM UTC

Clanan wrote: post #49

southphillyman wrote: post #45

Earlier quoted context omitted.

To be fair the bonuses I've heard about have been laughable so far and accompanied by large lay offs in two cases (Walmart and Comcast).

$1,000 is not laughable to most people.

3 car payments on 2 rent payments in a lot of the country. Its like the folks poo-pooing the Youtube folks earning a couple hundred off their channels. That little bit helps quite a lot.