TruthOut10
Active Member
- Dec 3, 2012
- 627
- 100
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Pay attention, Simpson and Bowles: There are some things in life worse than going into debt.
For Apple Inc., that worse thing is paying taxes: The company announced plans Tuesday evening to borrow money for the first time ever, despite having nearly $145 billion in cash. The problem is that $102 billion of that cash is parked overseas and would be taxed if Apple tried to use it in its plan to give money back to shareholders.
"We are continuing to generate significant cash offshore, and repatriating this cash would result in significant tax consequences under current U.S. tax law," Apple Chief Financial Officer Peter Oppenheimer said on a conference call discussing Apple's earnings for the quarter that ended in March.
Apple's earnings haven't exactly been setting the world on fire quite enough lately to satisfy finicky shareholders. So the company is under increasing pressure to give its shareholders a taste of its cash. It finally succumbed on Tuesday, saying it plans to pay out $100 billion by the end of 2015, in the form of stock buybacks and a higher dividend. That will amount to about $30 billion per year, according to Oppenheimer, which would just about take up all of Apple's "tax-free" cash flow, as he put it.
If Apple didn't borrow money, then it would have to, gasp, bring cash back home to help pay for its shareholder-greasing. And bringing Apple's offshore cash back home could result in a tax hit of up to $35 billion, assuming it pays the full statutory corporate tax rate (which doesn't happen very often). Analysts for months have been prodding Apple to borrow money to avoid the hit, and Apple has been listening, apparently.
Apple Would Rather Go Into Debt Than Bring Home $100 Billion In Offshore Cash
1). How about electing politicians who actually represent the people vs corporations?
2). How about stop buying their products?
3). So pouting is the least one can do, but any Nd everyone can do something to enact change and force Congress to correct this.
4). How about enforcing some laws that already on the books, like slapping an embargo tax on their products once they arrive into the U.S. for sale? Yes it would make their more expensive than it is already and less people would buy their product, thus losing that same amount or more in sales, thus forcing them to actually build their damn products here.
For Apple Inc., that worse thing is paying taxes: The company announced plans Tuesday evening to borrow money for the first time ever, despite having nearly $145 billion in cash. The problem is that $102 billion of that cash is parked overseas and would be taxed if Apple tried to use it in its plan to give money back to shareholders.
"We are continuing to generate significant cash offshore, and repatriating this cash would result in significant tax consequences under current U.S. tax law," Apple Chief Financial Officer Peter Oppenheimer said on a conference call discussing Apple's earnings for the quarter that ended in March.
Apple's earnings haven't exactly been setting the world on fire quite enough lately to satisfy finicky shareholders. So the company is under increasing pressure to give its shareholders a taste of its cash. It finally succumbed on Tuesday, saying it plans to pay out $100 billion by the end of 2015, in the form of stock buybacks and a higher dividend. That will amount to about $30 billion per year, according to Oppenheimer, which would just about take up all of Apple's "tax-free" cash flow, as he put it.
If Apple didn't borrow money, then it would have to, gasp, bring cash back home to help pay for its shareholder-greasing. And bringing Apple's offshore cash back home could result in a tax hit of up to $35 billion, assuming it pays the full statutory corporate tax rate (which doesn't happen very often). Analysts for months have been prodding Apple to borrow money to avoid the hit, and Apple has been listening, apparently.
Apple Would Rather Go Into Debt Than Bring Home $100 Billion In Offshore Cash
1). How about electing politicians who actually represent the people vs corporations?
2). How about stop buying their products?
3). So pouting is the least one can do, but any Nd everyone can do something to enact change and force Congress to correct this.
4). How about enforcing some laws that already on the books, like slapping an embargo tax on their products once they arrive into the U.S. for sale? Yes it would make their more expensive than it is already and less people would buy their product, thus losing that same amount or more in sales, thus forcing them to actually build their damn products here.