The QE all went to the banking buddies of this administration.
Or the last.
Actually no it didn't. Even if QE is formally ended this kind of thing, using cheap interest to buy back shares ( and I say this as a shareholder) is not really going to kickstart an economy in any way.
WRONG. Obama wants 14% on on cash overseas. But no more tax on top of that.
There's more, but not much more. Up to 19% total I believe.
Although most importantly it's a proposal that's going to be negotiated over and thus watered down. Biggest winners, even if it passes as it is currently, are companies like Philip Morris International that already repatriates all its foreign earnings (pretty much all its earnings).
They will be strongly on Obama's side. LOL. So the industry groups will be split on wanting it vs not wanting it, but all will want a lower rate than proposed.
19% is the tax on foreign profits going FORWARD, not past profits.
The Republicans want the 14% to be 6.5%. I think we will probably be at 10% for past profits when all is said and done.
I don't think the 19% tax on ALL FOREIGN profits will ever pass. No other civilized country has such a punitive tax on profits made in another country. If it ever passes you will see a mass exodus of companies moving their HQ to Canada and out of the US. Apple may become a Canadian company lol. The US loses jobs and tens of billions in Apple taxes.
A correction: The 6.5% is bi-partisan, not Republican.
There's more, but not much more. Up to 19% total I believe.
Yep, my understanding is: 19% on future foreign profits for all companies, and 14% one-time tax on all existing foreign cash (estimated about 2 trillion dollar).
19% is the tax on foreign profits going FORWARD, not past profits.
The Republicans want the 14% to be 6.5%. I think we will probably be at 10% for past profits when all is said and done.
I don't think the 19% tax on ALL FOREIGN profits will ever pass. No other civilized country has such a punitive tax on profits made in another country. If it ever passes you will see a mass exodus of companies moving their HQ to Canada and out of the US. Apple may become a Canadian company lol. The US loses jobs and tens of billions in Apple taxes.
Nothing stopping them saying their HQ is in ireland is there?
US Tax Laws mean that even if Apple move their domicile to say Canada then the US will still demand its share of their Worldwide profits. This is how BP's fines for Deepwater Horizon are levied on their Worldwide Profits and not just their US business.
There are a growing number of americans that have dual nationality who are giving up their ties to the Motherland simply due to the US IRS demanding its take on every cent they make anywhere in the world.
Sad really. The punitive demands they make on profits abroad are hitting the US Economy. This is blindingly obvious if you look at the huge amount even this 'reduced' tax rate would bring in.
US Tax Laws mean that even if Apple move their domicile to say Canada then the US will still demand its share of their Worldwide profits. This is how BP's fines for Deepwater Horizon are levied on their Worldwide Profits and not just their US business.
There are a growing number of americans that have dual nationality who are giving up their ties to the Motherland simply due to the US IRS demanding its take on every cent they make anywhere in the world.
Sad really. The punitive demands they make on profits abroad are hitting the US Economy. This is blindingly obvious if you look at the huge amount even this 'reduced' tax rate would bring in.
How can this be squared with any WTO etc? If a company moves it's HQ it's gone. Companies don't have citizenship.
A correction: The 6.5% is bi-partisan, not Republican.
Right and my 2 cents is I hope they can push though something close, perhaps around 10% or so. It would be great for the US if Apple could bring a massive chunk of that money back here and invest even more here at home than they do now.
US Tax Laws mean that even if Apple move their domicile to say Canada then the US will still demand its share of their Worldwide profits. This is how BP's fines for Deepwater Horizon are levied on their Worldwide Profits and not just their US business.
There are a growing number of americans that have dual nationality who are giving up their ties to the Motherland simply due to the US IRS demanding its take on every cent they make anywhere in the world.
Sad really. The punitive demands they make on profits abroad are hitting the US Economy. This is blindingly obvious if you look at the huge amount even this 'reduced' tax rate would bring in.
How can this be squared with any WTO etc? If a company moves it's HQ it's gone. Companies don't have citizenship.
Companies most certainly have a domicile, and some benefits of citizenship (thankfully, not yet the right to vote or to bear arms).
I'm glad to have Apple's capital reinvestment program.
Question: If Apple has $178 B in cash, why do they need to borrow via bonds? Isn't Apple using the cash-on-hand to fund this reinvestment program? (I'm sure there's an answer, so this is just for my education.)
Basically in order to buy shares or pay dividends, they can only use money from their cash which is either already in the US and taxes were paid on, or if the money was from a foreign source, it would have to be brought back to the US and taxed. Therefore, Apple has been issuing bonds to acquire the money without repatriating foreign earnings and paying tax on them. Since interest rates are so low, this is a viable solution at least for the time being. Additionally, every share they buy back is a share they don't have to pay dividends on so that helps as well.
Basically in order to buy shares or pay dividends, they can only use money from their cash which is either already in the US and taxes were paid on, or if the money was from a foreign source, it would have to be brought back to the US and taxed. Therefore, Apple has been issuing bonds to acquire the money without repatriating foreign earnings and paying tax on them. Since interest rates are so low, this is a viable solution at least for the time being. Additionally, every share they buy back is a share they don't have to pay dividends on so that helps as well.
They don't have to pay any dividends or a certain amount per stock.
Comments
The QE all went to the banking buddies of this administration.
Or the last.
Actually no it didn't. Even if QE is formally ended this kind of thing, using cheap interest to buy back shares ( and I say this as a shareholder) is not really going to kickstart an economy in any way.
WRONG. Obama wants 14% on on cash overseas. But no more tax on top of that.
There's more, but not much more. Up to 19% total I believe.
Although most importantly it's a proposal that's going to be negotiated over and thus watered down. Biggest winners, even if it passes as it is currently, are companies like Philip Morris International that already repatriates all its foreign earnings (pretty much all its earnings).
They will be strongly on Obama's side. LOL. So the industry groups will be split on wanting it vs not wanting it, but all will want a lower rate than proposed.
A correction: The 6.5% is bi-partisan, not Republican.
Cheaper to borrow money than repatriate taxable funds sitting in overseas accounts. Well, money for corporate bonds is borrow is cheap, anyway.
It's said that the companies/corporations have been doing a lot of buy-backs to boost their stock prices. That accounts for the market being higher.
WRONG. Obama wants 14% on on cash overseas. But no more tax on top of that.
Sounds pretty reasonable. Not too high, not too low (not shockingly high or low). This money has already been taxed - that's the theory.
Although, wasn't Apple and other corporations going through Ireland to avoid paying any taxes in Europe?
Yep, my understanding is: 19% on future foreign profits for all companies, and 14% one-time tax on all existing foreign cash (estimated about 2 trillion dollar).
Nothing stopping them saying their HQ is in ireland is there?
Presume it's 14% minus tax already paid which isn't 0%
US Tax Laws mean that even if Apple move their domicile to say Canada then the US will still demand its share of their Worldwide profits. This is how BP's fines for Deepwater Horizon are levied on their Worldwide Profits and not just their US business.
There are a growing number of americans that have dual nationality who are giving up their ties to the Motherland simply due to the US IRS demanding its take on every cent they make anywhere in the world.
Sad really. The punitive demands they make on profits abroad are hitting the US Economy. This is blindingly obvious if you look at the huge amount even this 'reduced' tax rate would bring in.
How can this be squared with any WTO etc? If a company moves it's HQ it's gone. Companies don't have citizenship.
Wait ... I thought corporations were people?
Right and my 2 cents is I hope they can push though something close, perhaps around 10% or so. It would be great for the US if Apple could bring a massive chunk of that money back here and invest even more here at home than they do now.
Companies most certainly have a domicile, and some benefits of citizenship (thankfully, not yet the right to vote or to bear arms).
Percentages are often left blank in the first SEC filing regardless of wheth it's fixed or floating, until the IB can gauge demand.
Basically in order to buy shares or pay dividends, they can only use money from their cash which is either already in the US and taxes were paid on, or if the money was from a foreign source, it would have to be brought back to the US and taxed. Therefore, Apple has been issuing bonds to acquire the money without repatriating foreign earnings and paying tax on them. Since interest rates are so low, this is a viable solution at least for the time being. Additionally, every share they buy back is a share they don't have to pay dividends on so that helps as well.
They don't have to pay any dividends or a certain amount per stock.