Originally Posted by svnipp
I think that Apple is building a pile of cash for the same reasons as many other companies. The Obama administration seems to be quite anti-business. Things like healthcare and this new equal paycheck whatever can potentially cost companies like Apple billions. I heard a report recently that large US companies have (I think the number was) a couple trillion dollars stashed in cash. The primary reason for this according to the CEOs/CFOs of these companies is uncertainty about government regulations and taxes.
Sorry to throw politics into this, but it seems as if the current administration is truly stifling the economic recovery with all of this massive government growth. US businesses appear to have lots of capital on hand that COULD be used to get the economy moving again and yet they sit on the money rather than hiring or expanding out of fear of what the regulatory and tax environment is going to look like.
OK. Off the soapbox.
That's ridiculous. Apple already supplies healthcare to all its employees - it would hardly be affected by the new healthcare regulations - in fact, if the new healthcare regulations bring down the overall cost of healthcare because more people are insured, it could actually reduce (or limit growth) in Apple's healthcare costs over the long term. The new healthcare bills are mostly going to impact smaller businesses - those that offer only very limited or no health care today, not larger ones.
And all Equal Paycheck is is a restating of the Equal Pay Act of 1963 - that you must have a reason if you pay less by gender for equal work. However I will admit that while the intent of this law is fine, it's impractical because companies can still generally get around it by changing job titles, descriptions, etc.
Corporations in the U.S. are paying the LEAST amount of corporate taxes that they've ever paid in recent history. I can't seem to find total numbers for more recent years, but in 2000, corporations paid $207 billion in taxes and by 2003, they paid only $132 billion. Neither Exxon-Mobil (which recorded a $42.5 billion profit), nor GE (which reported $10.5 billion in pre-tax income), paid ANY Federal corporate taxes in 2009. Do you really think this makes sense? U.S. corporations paid far higher corporate taxes during the Reagan administration than they're paying now (as are high income people).
So stop believing the garbage spouted by conservative media. Obama could support every idea Reagan and Bush ever came up with and they'd STILL be against him.
US businesses aren't spending because they have no guts - they're filled with executives who only know how to manage from quarter to quarter and are primarily concerned about the stock price because that's what their absurdly large bonuses (or stock options) are based upon.
Apple has proven that you can make tons of money in a very tough economy. I'm a supporter of Apple and I own the stock, but even I thought they would take a big hit in this economy. I'm still surprised that people are shelling out for their products.