Giant PR move. Amazon was already doing all of these and opening a new HQ without all this "tax" bill PR.
Apple plans new U.S. campus, to pay $38B in foreign cash taxes
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Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#162Earlier quoted context omitted.
The point is that the tax is mandatory, not the repatriation. If they didn’t believe that the US was the best place to put that money, they could have paid the tax and left it there or moved it elsewhere. The fact that they are deploying that capital here indicates some level of belief that the American economy will thrive under this tax plan.
This is pure fiction you've invented here. Apple bringing capital back to the US is solely to do with their being tax incentives to do so. Nothing more. Nothing less.
As you said, they are being incentivized to do so. It isn’t mandatory, which is what this whole argument is about. I don’t know how it’s “pure fiction” to point that out, when your own comment literally says what I have been saying.
Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#163Of course lowering taxes would encourage companies to repatriate large overseas cash hoards, but if that's the only goal, why have a tax at all? As a country the US has obligations to its current citizens and its future citizens and those obligations cost money. If we overly celebrate these windfalls every time the tax rate is lowered, we might not realize that what we owe the citizen is being forgot and allowed to e…
We currently get $0 in tax revenue from the cash Apple is hoarding overseas. This tax “holiday” (a term I dislike because it incorrectly implies that no tax is being paid on the repatriation, when it is simply a reduced rate) is resulting in $38 billion that we would not have otherwise received. $38,000,000,000 > $0
Yeah but uh... Trump. So this is bad. /s
Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#164Giant PR move. Amazon was already doing all of these and opening a new HQ without all this "tax" bill PR.
but Trump is going after Bezos..?
Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#165I love it. Apple gets to avoid paying taxes for years through accounting slight of hand, and then when they finally pay for part of what they owe they want a pat on the back for doing so. Corporations, man.
I'm rather sure your criticism is ill-founded: the money they're talking about moving to (US) Apple Inc is actually profit of other companies also named Apple homed in other countries, of course related to (US) Apple Inc and set up by the original, but with profits already taxed (your point: at questionable rates) in those home countries. They could just reinvest those profits in THOSE countries rather than the US. I…
They should probably stick away some of it under the cushions of their Irish sofa, what with that $13B EU tax bill still pending. But you are correct of course, that money are the proceeds from their tax evasion schemes overseas.
Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#166I 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…
The $1B Reno datacenter expansion was announced in May of 2017. So it has nothing to do with cash repatriation really. http://www.rgj.com/story/news/2017/05/10/breaking-apple-anno...
Apple has a couple of data centers across the us. The opening of one in Reno is not the new campus.
Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#167I feel like this potentially buried the lede. Apple is planning on opening up a new campus in the USA. I feel like Amazon's HQ2 search is going to open the floodgates for tech companies asking for public incentives. Tech companies in the Bay Area have been creating tens of thousands of jobs for years without asking for much publicly. Expect that to change now.
Or maybe it will open the floodgates for tech companies to escape high costs of SV/California/West Coast.
It is a hedging against increasingly expensive work force.
Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#168Earlier quoted context omitted.
> These are nothing more than PR moves. They’re certainly good for PR, and perhaps that’s the primary intention, but employees are benefitting from it.
Right, but imagine if instead, they gave them a raise instead of a one time bonus? That is how you actually benefit workers.
Raises are likely to be more useful to employees than bonuses, particularly over the long term. These bonuses don’t preclude the possibility of more bonuses down the road, however. It’s unclear at this point exactly how things are going to shake out along those lines.
Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#169I 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…
> I find it fascinating that a tax plan proposed by a President reviled throughout the Valley Not quite. The proposal has been on the table for years. The difference has been how to use the proceeds from repatriation. Republicans wanted lower corporate taxes. Democrats wanted something else. This wasn't new, it wasn't unique, and it wasn't Trump. Believing this was a plan proposed by Trump ignores history and facts.…
> but the same thing would have effectively happened had Democrats been in charge instead of Republicans.
Wasn't that the case when Obama was first elected? And yet, it didn't happen. They've kind of painted themselves into a corner with the "the rich and corporations aren't taxed enough" rhetoric, not sure how they'd successfully sell a corporate tax holiday to their base.
Re: Apple plans new U.S. campus, to pay $38B in foreign cash taxes
#170Earlier quoted context omitted.
>Incorrect. There is a repatriation tax holiday designed to encourage repatriation. They are not required to do so. Unfortunately, you're incorrect. https://www.pwc.com/us/en/tax-services/publications/insights...
Disregard the link with the confusing title and think critically for a moment. Do you really think the US government is forcing all companies to bring any and all profits earned and stored overseas back to the United States? That’s what you’re implying.
The US government is forcing all companies to pay a mandatory tax of 15.5% on all overseas profit that was designated as "indefinitely reinvested" under the previous tax regime. This is a mandatory one-time tax as part of a shift to a territorial system. Multinationals can do whatever they want with the cash, but considering that they've been lobbying government on a repatriation bill for over a decade specifically to be able to do domestic M&A, pay dividends, or do share buybacks, it's pretty obvious that all of that cash is coming back to the US. A business that wants to reinvest all their cash internationally is free to do so (and in fact the previous tax regime incentivized it), but they're going to be paying US tax on what they've accumulated so far.