Apple still pushing for $1.5 trillion US overseas profit tax holiday
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.
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.
Comments
I mean, that makes complete sense and all, what with obscene EU taxes, but still.
It didn't work in 2004. Why would it work now?
Because that's the absolute opposite of what this is talking about.
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.
Sounds like that old South Park episode of the underwear gnomes:
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.
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.
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:
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.
Think different. Compel repatriation and tax it at 70% at threat of imprisonment for all senior executives.
Written like a true pinko, commie, socialist.
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.
Much better than 0% of $1.5 trillion.
No great surprise there.
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!
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.
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.