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

reuters.com

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

#291

Post by jitix »

benjaminl wrote: post #253

This discussion is missing context. The whole reason that Apple has to pay taxes on foreign income is because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example…

The worldwide tax law sucks even more for an individual. And it makes absolutely no sense when you’re not even a citizen!

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

#292

Post by downandout »

jlmorton wrote: post #254
downandout wrote: post #245

Earlier quoted context omitted.

While I agree with you to some degree, we have the system we have. It has somehow survived through both tax-and-spend Democratic and fiscally conservative Republican administrations. It had to be fixed. So what say what you will about the current administration, they managed to get something done that even some of the most tax-hungry politicians in the nation previously failed to do.

> So what say what you will about the current administration, they managed to get something done that even some of the most tax-hungry politicians in the nation previously failed to do. This is not terribly unique. We had a very similar (slightly more generous) repatriation tax holiday during the Bush Administration, in 2004.

It's been 14 years, which included 8 years of tax-hungry Democratic rule. So it is at least somewhat unique.

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

#293

Post by SapphireSun »

walshemj wrote: post #284
SapphireSun wrote: post #235

This is a diversion tactic. They're grabbing 252.3B and spending less than a fifth of it. Let's imagine a different world. 200B, divided by 50k + 1.5x overhead (75k) could create about 2.6M decent jobs for one year (or 1.3M for two years etc). 2.6M jobs is equal to 0.8% of the total US population. The total labor force size is about 160M (~1/2 the total population) and the U6 measure of unemployment is about 8%. A he…

Well hopefully they well distribute the rest as a special dividend to the stock owners

You have the right idea. That's probably what they will do, but not as a dividend (those are taxed as ordinary income). Instead they will buy back stock, reducing the supply of stock and increasing the price. Long term sales of stock incur a 15% tax rate.

I'm not saying this is good, but this is what they will do.

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

#294

Post by icantdrive55 »

joshuas wrote: post #278
SapphireSun wrote: post #235

This is a diversion tactic. They're grabbing 252.3B and spending less than a fifth of it. Let's imagine a different world. 200B, divided by 50k + 1.5x overhead (75k) could create about 2.6M decent jobs for one year (or 1.3M for two years etc). 2.6M jobs is equal to 0.8% of the total US population. The total labor force size is about 160M (~1/2 the total population) and the U6 measure of unemployment is about 8%. A he…

Are you under the impression that a sizable portion of those currently unemployed have the skills that Apple looks for in their employees? Or are you suggesting they start up a pastry shop, carwash and clothing conglomerate?

Yes--if they didn't move manufacturing to the cheapest country.

Job listing in Midwest: We need people to work on our assembly line. We need all workers for administrative to live workers.

Plus--I don't believe most Foxconn workers are highly trained. I'm really tired of Globalism. Want to make your toys there--move corporate too. Just leave. I'm in a bad mood today--sorry, but there's so many people who need jobs here. And I used to justify Apples high prices years ago because I had the glowing feeling Americans were putting the computers together, getting a decent wage.

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

#295

Post by SapphireSun »

seanmcdirmid wrote: post #283
SapphireSun wrote: post #277

Earlier quoted context omitted.

Yet somehow they managed to avoid paying much tax elsewhere as well. Strange.

They do pay taxes elsewhere. They are subject to each country's tax laws that they make income in. You are probably referring to the Irish/EU arrangement, but that has little bearing in Japan or China or wherever else China makes money.

Your reference to the double Irish arrangement completely undercuts your point. You admit that they aren't paying substantial taxes in a huge market they participate in.

With respect to Japan and China, a multinational company, an effectively stateless entity (or possibly a state unto itself) can simply move to the most profitable country, thus forcing countries to compete for its tax dollars. Thus, the multinationals, unless resisted via solidarity, will cause a collapse in all nations treasuries.

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

#296

Post by f4rker »

SapphireSun wrote: post #235

This is a diversion tactic. They're grabbing 252.3B and spending less than a fifth of it. Let's imagine a different world. 200B, divided by 50k + 1.5x overhead (75k) could create about 2.6M decent jobs for one year (or 1.3M for two years etc). 2.6M jobs is equal to 0.8% of the total US population. The total labor force size is about 160M (~1/2 the total population) and the U6 measure of unemployment is about 8%. A he…

In the internet utopia fantasyland capitalism is a long-dead dinosaur and socialism is the obvious champ...

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

#297

Post by civilian »

SapphireSun wrote: post #248
TearsInTheRain wrote: post #242

Earlier quoted context omitted.

What is their fair tax rate? How much do they owe the working class?

All of their profits is what the socialist would respond. :) They produce nothing without the working class. Managers can earn a modest salary.

It's important to have incentives to reward success. How would a business even grow if it could never keep profits?

The working class does benefit from Apple, in the form of high-quality technology that even they can purchase.

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

#298

Post by maxerickson »

autokad wrote: post #238
gonvaled wrote: post #198

Earlier quoted context omitted.

It legislated a reduction in tax revenue hoping / pretending that an increase in economic activity will offset the reduction. Fact 1: reduced tax rate and revenue Fact 2: permanent beneffit to corporations, in the form of tax reductions Bet 1: the economy will grow Bet 2: the proffits will trickle down Bet 3: increase in economy will allow to fullfill obligations If the bets do not materialize, nobody cares. That is,…

i already received 1,000$, to which I spent on a new energy efficient door, to which I paid a handyman to install it. there is a lot more winners than your dogma suggests. I am interested in seeing where this goes. if we do see wage growth from it, it provides evidence to a lot of questions about how the cost of healthcare was squeezing out our wages. if it doesnt, then a lot of complaints about corporations will hav…

There are no cuts in healthcare spending offsetting these tax cuts.

Ending the individual mandate will likely reduce the number of people buying insurance from ACA marketplaces, but that isn't going to dramatically change the price of other insurance (to the extent it has an impact, it will probably push insurance prices up...).

The tax cuts are, at present, going to largely be paid for by borrowing money.

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

#299

Post by vasilipupkin »

seanmcdirmid wrote: post #133
eridius wrote: post #53

Earlier quoted context omitted.

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?

The USA has moved to a territorial tax system for corporations, so any income earned abroad will no longer be subject to US tax (only taxed by the country where the income was generated), and so can be freely moved back to the USA if the companies wish. There is no longer a distinction to be made concerning where money can be spent without being US taxed.

There was little distinction before as companies could borrow against their overseas cash to invest in the US

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

#300

Post by rlanday »

SapphireSun wrote: post #295
seanmcdirmid wrote: post #283

Earlier quoted context omitted.

They do pay taxes elsewhere. They are subject to each country's tax laws that they make income in. You are probably referring to the Irish/EU arrangement, but that has little bearing in Japan or China or wherever else China makes money.

Your reference to the double Irish arrangement completely undercuts your point. You admit that they aren't paying substantial taxes in a huge market they participate in. With respect to Japan and China, a multinational company, an effectively stateless entity (or possibly a state unto itself) can simply move to the most profitable country, thus forcing countries to compete for its tax dollars. Thus, the multinational…

Ah, this is exactly the same reason no corporation can stay in business! (Since consumers can just buy from the one that has the lowest prices)

For this reason, we should encourage corporations to form cartels to avoid getting taken advantage of by disloyal consumers.

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