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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

#411

Post by jnordwick »

dang wrote: post #210

Url changed from https://www.apple.com/newsroom/2018/01/apple-accelerates-us-... . Some of the comments below make a bit more sense if you know they were replying to that one. This is a bit of an exception to the HN guidelines' call for original sources. We generally prefer a high quality third party report on news like this to a corporate press release. The latter tend to read like press releases.

Unless the press release is from Google and disguised as a blog entry. Then HN loves it as gospel.

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

#412

Post by [deleted] »

Jerry2 wrote: post #409
dang wrote: post #210

Url changed from https://www.apple.com/newsroom/2018/01/apple-accelerates-us-... . Some of the comments below make a bit more sense if you know they were replying to that one. This is a bit of an exception to the HN guidelines' call for original sources. We generally prefer a high quality third party report on news like this to a corporate press release. The latter tend to read like press releases.

dang, why a double standard? If this was a story about Google, HN would have changed links to the official Google PR.

[deleted]

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

#413

Post by stevenwoo »

TheSpiceIsLife wrote: post #332
benjaminl wrote: post #287

Earlier quoted context omitted.

Yes, that is correct but since the US had until recently the highest corporate tax in the OECD, the US corporation will would almost always pay more taxes on German income than a German corporation would on German it’s German income. Giving the US corporation a systematic disadvantage unless they kept the money out of the US. But all this has now changed.

> What is little known about this tax bill > But all this has now changed I live in Australia. As a casual outside observer, can you inform me as to whether this tax bill has passed in to legislation, or is likely to?

It passed, but there are parts of the bill that only last ten years (those applying to personal/small business taxes), and then those tax rules revert to the previous version after ten years unless they are passed again under non-Byrd rules in the Senate. https://www.bloomberg.com/news/articles/2017-11-14/how-the-b...

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

#414

Post by Mountain_Skies »

mnglkhn2 wrote: post #167
rambleraptor wrote: post #149

I 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.

It would do many tech companies some good to have a larger percentage of their workforce in states with cultural values different from that of the bay area. That would be valuable diversity that would help them better understand their customers.

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

#415

Post by rhizome »

rdtsc wrote: post #259
onezerozeroone wrote: post #213

Earlier quoted context omitted.

If you or I decided we just didn't like the tax rate that applied to us and didn't pay our taxes for decades at a time on income we made overseas, what do you think would happen? Corporations are treated as people only when it's convenient. You and I don't have high-powered lawyers, lobbyists, loopholes, offshore accounts, subsidiaries, etc to hide behind. This is an insult to every U.S. citizen...Apple wouldn't exis…

True it seems we are getting the crumbs here falling between the cracks. But what is another realistic scenario? Tax them even more? Wouldn't they move to another tax haven. Why didn't that work so far, these tax tricks are not new.

There are other forces in play. How likely do you think Apple is to give up their "Designed in California" tagline?

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

#416

Post by SomewhatLikely »

danjayh wrote: post #393
cromwellian wrote: post #205

How realistic is it that a $5 billion fund can move a non-trivial amount of iPhone manufacturing to the US? Most of the BOM supply chain is in Asia, and assembly at FoxConn I heard amounts to 3% of the cost. It seems like Apple would have to build mostly automated assembly in the US or suffer severe margin reduction, and they'd suffer turnaround issues with the crucial components being still sourced in China. However…

Speak for yourself. I'm not at the high end of the income curve - not in the 1%, not even in the 10%, and I'm getting almost a $4k tax cut next year. I ran the numbers for my friends who are probably in the bottom half of the income curve (they make just over 40k between the two of them), and they're getting about a $1200 reduction. They were pretty shocked, since they'd been told over and over that it's not really a…

Those cuts are not permanent though. They taper off and end within 10 years and will need to be renewed through future legislation leading to even further deficit impact beyond the $1.5 trillion. Meanwhile, the corporate tax cut and I believe estate tax cut are permanent and will not require renewal.

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

#417

Post by valuearb »

revelation wrote: post #320
anilshanbhag wrote: post #265

Earlier quoted context omitted.

=> But if a US company earns income in Germany it pays both German taxes and US taxes. This is not portrayed accurately. If you pay German taxes, you claim exception for that amount. So if you pay more taxes than the rate in US, you owe no tax for that income in US. If the rate is less in the country than in US, you pay the difference.

But of course Apple isn't paying no German taxes. They didn't pay taxes on any of this overseas money, and they had the gall to ask for an "repatriation holiday" so they could pay overall zero taxes on that huge heap of money. Now they are paying the US gov. Unless they can keep coming up with more Irish tax avoidance schemes, going forward they will probably also have to pay in Europe.

Yes, they paid taxes in Germany, France, etc. it’s reported in their financial statements. They’ve already paid 8 or 9% foreign income taxes on their foreign earnings.

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

#418

Post by foobiekr »

spoiledtechie wrote: post #376
cromwellian wrote: post #205

How realistic is it that a $5 billion fund can move a non-trivial amount of iPhone manufacturing to the US? Most of the BOM supply chain is in Asia, and assembly at FoxConn I heard amounts to 3% of the cost. It seems like Apple would have to build mostly automated assembly in the US or suffer severe margin reduction, and they'd suffer turnaround issues with the crucial components being still sourced in China. However…

If its stock buy backs, then why is Apple creating jobs and a new campus with the capital?

maybe they aren't really doing that and this is their spin on it for now?

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

#419

Post by valuearb »

cromwellian wrote: post #205

How realistic is it that a $5 billion fund can move a non-trivial amount of iPhone manufacturing to the US? Most of the BOM supply chain is in Asia, and assembly at FoxConn I heard amounts to 3% of the cost. It seems like Apple would have to build mostly automated assembly in the US or suffer severe margin reduction, and they'd suffer turnaround issues with the crucial components being still sourced in China. However…

No Americans want to make iPhones, those are crappy jobs. We want more engineering jobs.

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

#420

Post by hfourm »

pdeuchler wrote: post #187
downandout wrote: post #75

Earlier quoted context omitted.

And yet nobody gave it to them until now, which resulted in trillions of dollars that should have been benefitting the US economy sitting unused in places like Ireland.

Except those trillions of dollars were already benefiting the US economy by acting as collateral for huge loans and investments taken out by Apple stateside. Even with the deemed repatriation the money will most likely still sit in Irish bank accounts, and in certain cases escrow and PE funds, as it makes no sense to spend the time and effort to wire the money over to a US bank since taxes were already paid on it and…

Saving this burn for later
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