Apple has greatest cash pile among US businesses

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Comments

  • Reply 21 of 44
    anantksundaramanantksundaram Posts: 20,305member
    Quote:
    Originally Posted by digitalclips View Post


    How about 17.5% to show support for the USA?



    As a shareholder, I prefer 5%. It's higher than 0% which is what it currently is.



    The issue with corporate taxes (that most people don't realize, in the case of companies like Apple who have greater market power than a commodity product) is, almost all of it is passed-through to the consumer. In other words, the extra 12.5% you want the US to charge will largely come from you and me as consumers.
  • Reply 22 of 44
    mj1970mj1970 Posts: 9,002member
    Quote:
    Originally Posted by anantksundaram View Post


    As a shareholder, I prefer 5%. It's higher than 0% which is what it currently is.



    The issue with corporate taxes (that most people don't realize, in the case of companies like Apple who have greater market power than a commodity product) is, almost all of it is passed-through to the consumer. In other words, the extra 12.5% you want the US to charge will largely come from you and me as consumers.



    Actually...all of it is passed onto the consumers in one way or another. This is the bugger of it all...the customers of corporations pay these taxes...the corporations just "collect" it. It's merely the method of accounting that makes it look like the corporations are paying it.
  • Reply 23 of 44
    cu10cu10 Posts: 294member
    I should've bought AAPL, I should've bought AAPL, I should've bought AAPL,

    (repeat)
  • Reply 24 of 44
    dcj001dcj001 Posts: 301member
    Quote:
    Originally Posted by CU10 View Post


    I should've bought AAPL, I should've bought AAPL, I should've bought AAPL,

    (repeat)



    If you buy now, a year, or two, or three years from now, you can say, "I'm glad I bought AAPL."



    If you don't buy AAPL now, you can keep saying what you've been saying for a long time.



    You had better hurry. This could be the last time to buy AAPL under $400 per share.
  • Reply 25 of 44
    anantksundaramanantksundaram Posts: 20,305member
    Quote:
    Originally Posted by MJ1970 View Post


    Actually...all of it is passed onto the consumers in one way or another. This is the bugger of it all...the customers of corporations pay these taxes...the corporations just "collect" it. It's merely the method of accounting that makes it look like the corporations are paying it.



    Not quite.



    Depending on competitive conditions, the ability to pass-through is not always 100%. All it needs is one undifferentiated competitor who can, say, parlay some temporary advantage to try and gain share by lowering prices, and everyone has to follow suit (or the protagonist gains dramatic share which will come at their expense).



    The incentive to do this? The lower price times higher volume (from the higher market share) can produce a higher aggregate profit than before for the firm that is able to parlay such an advantage.



    Of course, the shareholders of the affected firms - not their consumers - ultimately bear that cost.
  • Reply 26 of 44
    Think greed
  • Reply 27 of 44
    mj1970mj1970 Posts: 9,002member
    Quote:
    Originally Posted by anantksundaram View Post


    Not quite.



    Depending on competitive conditions, the ability to pass-through is not always 100%. All it needs is one undifferentiated competitor who can, say, parlay some temporary advantage to try and gain share by lowering prices, and everyone has to follow suit (or the protagonist gains dramatic share which will come at their expense).



    The incentive to do this? The lower price times higher volume (from the higher market share) can produce a higher aggregate profit than before for the firm that is able to parlay such an advantage.



    Of course, the shareholders of the affected firms - not their consumers - ultimately bear that cost.



    We appear to be talking about different issues here. The taxes paid by corporations are ultimately all paid by the customers of that corporation.
  • Reply 28 of 44
    mj1970mj1970 Posts: 9,002member
    Quote:
    Originally Posted by sternapples53 View Post


    Think greed



  • Reply 29 of 44
    Quote:
    Originally Posted by CU10 View Post


    I should've bought AAPL, I should've bought AAPL, I should've bought AAPL,

    (repeat)



    Yeah...



    I've tried a few times over the last decade but it is not so easy if you are in another country. It is quite frustrating.
  • Reply 30 of 44
    irontedironted Posts: 129member
    GE has $120 billion in the bank, mostly overseas.
  • Reply 31 of 44
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by IronTed View Post


    GE has $120 billion in the bank, mostly overseas.



    Yes, but GE also has 300BN of bonds outstanding. Apple has by far the largest net cash position.
  • Reply 32 of 44
    Quote:
    Originally Posted by MJ1970 View Post


    We appear to be talking about different issues here. The taxes paid by corporations are ultimately all paid by the customers of that corporation.



    We are talking about the same thing.



    I am suggesting that the second sentence of yours is not necessarily true!
  • Reply 33 of 44
    Quote:
    Originally Posted by cloudgazer View Post


    Yes, but GE also has 300BN of bonds outstanding. Apple has by far the largest net cash position.



    That's correct.
  • Reply 34 of 44
    mj1970mj1970 Posts: 9,002member
    Quote:
    Originally Posted by anantksundaram View Post


    We are talking about the same thing.



    I am suggesting that the second sentence of yours is not necessarily true!



    I'm sorry but I don't see how, and I'm not seeing how your previous explanation makes things any clearer.
  • Reply 35 of 44
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by IronTed View Post


    GE has $120 billion in the bank, mostly overseas.



    GE would not qualify as a non-financial company.
  • Reply 36 of 44
    charelcharel Posts: 93member
    "With more than half of the company's business now occurring outside the US, a large portion of Apple's cash reserves are now held in OFFSHORE accounts, mirroring the fact that $600 billion of the $1.24 trillion in cash held by US businesses in general is also sitting overseas."



    [There is a difference between holding cash in overseas banks and securities and holding cash in offshore accounts.

    The one is after paying tax and the other is to avoid it. Seeing that Apple pays about 25% tax on income it is more likely that Apple is not hoarding cash in offshore accounts.
  • Reply 37 of 44
    shompashompa Posts: 343member
    Use the money Apple.



    Buy AMD: 6 billion. Great graphics. Great server processors. OK desktop processors.



    Buy American Express. With NFC E-wallet on your iPhone they could give us a whole new way of banking. iTunes of banking. Finally easy to pay bills, secure, elegant.



    Put billions into how to clone Steve Jobs. Make 3000 and send him out to different companies for 10% commission. Save US economy and make the world better.
  • Reply 38 of 44
    MacProMacPro Posts: 19,471member
    Quote:
    Originally Posted by cloudgazer View Post


    Apple's average tax provision is about 22%, so that would push them up to 40%.



    I meant for the tax holiday in general, not Apple specifically. 5% seems a tad low given the state the US is in.
  • Reply 39 of 44
    MacProMacPro Posts: 19,471member
    Quote:
    Originally Posted by DCJ001 View Post


    If you buy now, a year, or two, or three years from now, you can say, "I'm glad I bought AAPL."



    If you don't buy AAPL now, you can keep saying what you've been saying for a long time.



    You had better hurry. This could be the last time to buy AAPL under $400 per share.



    I agree. All you hear is I should have bought AAPL at any price level. Given reports it is still way undervalued and the massive room for growth what's wrong with now? I have trenches bought at many levels, they all go up.
  • Reply 40 of 44
    Quote:
    Originally Posted by NomadMac View Post


    The biggest American export to China is our middle class.



    Apple doesn't even pay a living wage in its stores. Apple isn't going to bring back manufacturing to Elk Grove.



    Since I know several people living off the wages they earn at an Apple Store, and since I also know that Apple pays a competitively higher wage than most retail operations here, I would have to disagree with you on that statement.
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