Apple still pushing for $1.5 trillion US overseas profit tax holiday

Posted:
in General Discussion edited January 2014
With an estimated $1.5 trillion in foreign profits at stake, Apple and other tech companies have continued to show support for an overseas profit tax holiday for U.S. corporations.



Apple is a financial backer of the WIN America corporate lobbying group that has garnered millions of dollars for major American corporations, Reuters reported on Wednesday. The companies seek a tax break on $1.5 trillion in profits that are being held overseas.



The White House has stood in opposition to a tax holiday, but supporters believe they might be able to sway President Barack Obama to support the measure as the U.S. economy continues to struggle.



The a proposed bill reportedly has the support of 15 Republicans and eight Democrats in the House of Representatives. No bill has appeared in the Senate, but at least one Democratic senator has indicated they are considering one.



The WIN America Campaign has argued that the tax holiday will provide an incentive for U.S. businesses to bring their global earnings to America, and invest in jobs locally. It argues that another stimulus, more tax cuts or action by the Federal Reserve are unlikely, while unemployment lingers north of 9 percent.



"Providing American businesses with incentives to invest at home is a common sense solution that will immediately inject up to $1 trillion into our economy and provide businesses with the security and certainty they need to help Americans get back to work," the campaign's official site reads. "The time to act is now. Let's invest the money here at home -- not spend it overseas."



Apple is not alone in the tech industry in its support of the foreign profit tax holiday. Google is another financier of the WIN America campaign, along with Oracle and Cisco. Reuters noted that all four companies are also major backers of Obama, donating a total of $1.3 million to his 2008 campaign.







Apple first joined the tax holiday effort in February, calling for a temporary break that would enable the iPhone maker and others to repatriate foreign cash by paying only 5 percent in taxes during a one-year period. The companies have argued that such a break could justify investing in research, hiring American workers, and other domestic spending that would boost the economy.



As of last quarter, Apple had nearly $80 billion in cash holdings, while international sales accounted for 62 percent of the company's revenue for the three-month period. Apple executives believe the role of international sales will become greater in the coming quarters, particularly in China, where the company's products have seen considerable growth.
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Comments

  • Reply 1 of 161
    tallest skiltallest skil Posts: 43,399member
    Why not "Apple, et. al. push for a…" instead of making it look like Apple itself is going to get a trillion and a half dollars in profit if they stop being taxed?



    I mean, that makes complete sense and all, what with obscene EU taxes, but still.
  • Reply 2 of 161
    It didn't work in 2004. Why would it work now?
  • Reply 3 of 161
    tallest skiltallest skil Posts: 43,399member
    Quote:
    Originally Posted by Habañero View Post


    It didn't work in 2004. Why would it work now?



    Because that's the absolute opposite of what this is talking about.
  • Reply 4 of 161
    Doesn't Apple already have 87 billion in cash they aren't spending? What would adding to the pile of money do?
  • Reply 5 of 161
    Quote:
    Originally Posted by Tallest Skil View Post


    Because that's the absolute opposite of what this is talking about.



    Nope; it's the exact same argument made then and now: "It'll stimulate the economy". It didn't.
  • Reply 6 of 161
    benroethigbenroethig Posts: 2,782member
    It brings the money home and gives it to people like Steve Jobs who aren't hurting for money instead of the people now struggling to feed their families because their jobs are being shipped overseas to slave labor factories.
  • Reply 7 of 161
    So let me get this straight, our federal and state governments have no cash to fund any programs from school aid to health care, they are unwilling to tax the rich for revenue...and somehow repatrioting $1 trillion + dollars tax free is going to somehow stimulate the economy? Remind me how again?



    Sounds like that old South Park episode of the underwear gnomes:
    Phase 1: Collect Underpants

    Phase 2: ?

    Phase 3: Profit
  • Reply 8 of 161
    Think different. Compel repatriation and tax it at 70% at threat of imprisonment for all senior executives.
  • Reply 9 of 161
    tallest skiltallest skil Posts: 43,399member
    Quote:
    Originally Posted by Habañero View Post


    Nope; it's the exact same argument made then and now: "It'll stimulate the economy". It didn't.



    Ah, I read it as being? Ah, never mind; I was wrong.



    Well, we're in a recession now; you never know.
  • Reply 10 of 161
    jexusjexus Posts: 373member
    Quote:
    Originally Posted by BenRoethig View Post


    It brings the money home and gives it to people like Steve Jobs who aren't hurting for money instead of the people now struggling to feed their families because their jobs are being shipped overseas to slave labor factories.



    Steve Jobs makes a dollar a year. Compare that to Other CEO's.
  • Reply 11 of 161
    Quote:
    Originally Posted by SiMBa37 View Post


    So let me get this straight, our federal and state governments have no cash to fund any programs from school aid to health care, they are unwilling to tax the rich for revenue...and somehow repatrioting $1 trillion + dollars tax free is going to somehow stimulate the economy? Remind me how again?



    Sounds like that old South Park episode of the underwear gnomes:
    Phase 1: Collect Underpants

    Phase 2: ?

    Phase 3: Profit



    This is a quite different argument which Trey was making. The mantra of "Corporations are bad. Mkay" makes the rounds of all young people, which was the reason for drinking sewage flavored Tweeks local coffee brew vs. the better tasting but corporate Harbucks coffee. This is not a social-economic issue. It's a very simple issue of who is stronger, governments or corporations.
  • Reply 12 of 161
    Quote:
    Originally Posted by bad_ika View Post


    Think different. Compel repatriation and tax it at 70% at threat of imprisonment for all senior executives.



    Written like a true pinko, commie, socialist.
  • Reply 13 of 161
    zoetmbzoetmb Posts: 2,445member
    There is no evidence that this tax holiday would help anyone but shareholders (and I happen to be an Apple shareholder, but I'm opposed to it) and in Apple's case, since they refuse to pay dividends, it probably wouldn't even help shareholders. IMO, U.S. corporations pushing for this should be ashamed of themselves. The country is suffering and needs revenue and jobs. Considering how well Apple is doing, they should be doubly ashamed.



    Any tax holiday should only be accompanied by an audited commitment to hiring where the IRS or Socal Security Administration would certify how many employees and at what salary levels a company has before and after the tax holiday. The tax discounts would depend upon the increase in employee count and average wages (for full-time U.S. employees who are NOT "highly compensated") by each company seeking the tax holiday and would be given only at the end of the tax year after the employee increase has been certified with huge penalties for manipulating numbers (like moving employees from one division to another). IMO, that's the only way this would make any sense.
  • Reply 14 of 161
    What's 5% of $1.5 trillion?

    Much better than 0% of $1.5 trillion.
  • Reply 15 of 161
    Shouldn't Americans be proud of Apple employing thousands of people and building a giant new facility to house them all and enjoying success over companies like Samsung, HTC and LG taking business away to Asia?
  • Reply 16 of 161
    So they are all voting for a fee lunch.



    No great surprise there.
  • Reply 17 of 161
    lukeilukei Posts: 332member
    Quote:
    Originally Posted by cheviot View Post


    Doesn't Apple already have 87 billion in cash they aren't spending? What would adding to the pile of money do?



    That cash is held around the globe, not just in the US. That's their issue!
  • Reply 18 of 161
    lukeilukei Posts: 332member
    It would make sense if companies had to commit to paying out say 10% of the money saved either as bonuses to staff or as an investment in their local community. Then the economy might benefit.
  • Reply 19 of 161
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by studiomusic View Post


    What's 5% of $1.5 trillion?

    Much better than 0% of $1.5 trillion.



    I'm all for this so-called tax holiday.





    PS: This is article about politics so I'm surprised at how tame the rhetoric is so far. If ever there was a thread for crazies to take their soapbox this is it.
  • Reply 20 of 161
    Quote:
    Originally Posted by solipsism View Post


    I'm all for this so-called tax holiday.





    PS: This is article about politics so I'm surprised at how tame the rhetoric is so far. If ever there was a thread for crazies to take their soapbox this is it.



    There are many polls that show >80% of americans are in favor of a removal of tax breaks for the rich. Unfortunately our politicians dont serve the people, they serve the corporations, so its a mute point.



    Doesn't stop John "the tan man" Boener from constantly invoking the "will of the American people" every 5 minutes.
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