Why does anyone want mega corporations to sit on vast pots of money when that money could be working for good? When each of us is dead and buried it'll still be there, lifeless, inert, wasted, like ourselves.
Why does anyone want mega corporations to sit on vast pots of money when that money could be working for good? When each of us is dead and buried it'll still be there, lifeless, inert, wasted, like ourselves.
People want it to be spent for good. Giving it to the government is worse than letting it sit there.
It's like giving money to your cousin with a drug problem and telling him to use it to pay his rent. The end result: He's in the street, high as a kite.
I'm confused over all the negativity over this. The US benefits from these overseas funds, which they don't now. US companies have an incentive to bring money back into the country - they can use it and not pay any more tax than they already have. Companies in the US pay less tax. Companies manufacturing in the US pay less tax. All the incentives flow towards more money in the US and more jobs. How does any of this ruin America?
Why does anyone want mega corporations to sit on vast pots of money when that money could be working for good? When each of us is dead and buried it'll still be there, lifeless, inert, wasted, like ourselves.
That's a misconception. First of all, savings don't harm the economy or prevent resources from being utilized; quite the opposite. Deferred consumption frees up resources to be used further from consumption (this is true even with hoarding). Don't confuse money with capital. Secondly, the reason there is a lot of "unused" offshore capital is due to the capital gains tax to begin with. This is he main impetus for lowering it.
Finally, I shake my head whenever anybody suggests these public works programmes are going to accomplish anything but divert resources AWAY from productive purposes.
I'm confused over all the negativity over this. The US benefits from these overseas funds, which they don't now. US companies have an incentive to bring money back into the country - they can use it and not pay any more tax than they already have. Companies in the US pay less tax. Companies manufacturing in the US pay less tax. All the incentives flow towards more money in the US and more jobs. How does any of this ruin America?
The U.S. shouldn't benefit on income earned overseas. That's just crazy proposing this. No other country on earth does this. As it is, we have the highest corporate tax rate in the world. How would this even create jobs? All this does is provide more money for our government, who's spending is out of control.
Might need better details of this tax plan, but any kind of tax law that encourages foreign countries to create retaliatory or reciprocal laws is fraught with issues.
Additionally companies won't sit by and just absorb the change, they will alter their business structure to maintain optimal profits (as is their fiduciary responsibility.) In all likelihood eliminating opportunities to repatriate future earnings. (For most, this would be cutting out the USA directly, such as by licensing the design to wholly independent foreign partners.)
Foreign earnings are just that, foreign. Those countries are not keen to suddenly see billions removed from their respective economies. (We already know what China will do.)
People want it to be spent for good. Giving it to the government is worse than letting it sit there.
It's like giving money to your cousin with a drug problem and telling him to use it to pay his rent. The end result: He's in the street, high as a kite.
If not government, then who will spend it for good? We can't rely on a system of arbitrary philanthropy.
If not government, then who will spend it for good? We can't rely on a system of arbitrary philanthropy.
Corporations spend it for good. Either they give it back to shareholders (who spend it, employing people) or they spend it on capital expenditures (which again, employs people). This is economics 101...
It's understandable that Apple will have more cash on hand than most, given their history, but they'd still love to have a lot of that overseas stuff back to play with.
The US does this to individuals not just corporations. Even citizens that have never set foot in the US (citizens by birth) have to not only file taxes each year they have to pay tax on anything over $90k earned and tell the US Treasury annually about every single bank account they have if any one of those accounts touched $10,000 at any point during the year. Basically they make you feel like a criminal for living outside the US...
I hoped that Obama of all people who actually had the chance to spend some time living overseas as a child would appreciate how much the US benefits from expats without punishing them...
Finally, I shake my head whenever anybody suggests these public works programmes are going to accomplish anything but divert resources AWAY from productive purposes.
The country needs infrastructure improvements to be more efficient. How is that not a productive purpose?
As Romney professed, "Corporations are people too, my friend." As a real person who must pay tax on overseas income even if I don't repatriate it, it is fair. As someone who holds Apple stock, I don't like it.
The mandatory 14 percent tariff could cost Apple as much as $2 billion up front, given that the company's overseas cash pile had reached as high as $140 billion last year.
I don't get the math. 140 billion x 14% = 19.6 billion, not 2 billion.
Can someone explain this? ...or does Appleinsider need a new calculator?
As it is, we have the highest corporate tax rate in the world.
Please show us a US company that paid anywhere close to the official 40% corporate tax. I own a corporation which paid very little tax in 2014. That is what accountants do - write off income.
As long as it's applied properly to all companies, it is an excellent idea for governments the world over to tax multi mega million companies at a rate of at least 35%. Provided that these funds go where they ought.
Actually this is a terrible idea, high taxes in general are a bad idea. But in many cases these funds are or will be taxed in the foreign locations anyways, effectively the companies get taxed twice. Beyond that if you had read the article the tax rate would actually go down.
I'd be interested to know where you think the taxes ought to go because I suspect you want more "social" or welfare spending which is perhaps the worst way for the government to spend the taxes it places on Americans. Tax dollars are far better off invested in building for tomorrow, things like nuclear fusion research, NASA, physics and biology are far more constructive places to put the tax dollar. Tax dollars should result in payoff down the road and strong turn over of those dollars not the dead end spend on booze and drugs that currently happens.
Tax dollars are far better off invested in building for tomorrow, things like nuclear fusion research, NASA, physics and biology are far more constructive places to put the tax dollar.
People forget how much we advanced thanks to the space program in the '60s. Not to mention the prestige benefits.
Comments
I fail to see how the US can tax corporations that aren’t US corporations.
Same here. I question the legality of that.
Why does anyone want mega corporations to sit on vast pots of money when that money could be working for good? When each of us is dead and buried it'll still be there, lifeless, inert, wasted, like ourselves.
Why does anyone want mega corporations to sit on vast pots of money when that money could be working for good? When each of us is dead and buried it'll still be there, lifeless, inert, wasted, like ourselves.
People want it to be spent for good. Giving it to the government is worse than letting it sit there.
It's like giving money to your cousin with a drug problem and telling him to use it to pay his rent. The end result: He's in the street, high as a kite.
I'm confused over all the negativity over this. The US benefits from these overseas funds, which they don't now. US companies have an incentive to bring money back into the country - they can use it and not pay any more tax than they already have. Companies in the US pay less tax. Companies manufacturing in the US pay less tax. All the incentives flow towards more money in the US and more jobs. How does any of this ruin America?
Why does anyone want mega corporations to sit on vast pots of money when that money could be working for good? When each of us is dead and buried it'll still be there, lifeless, inert, wasted, like ourselves.
That's a misconception. First of all, savings don't harm the economy or prevent resources from being utilized; quite the opposite. Deferred consumption frees up resources to be used further from consumption (this is true even with hoarding). Don't confuse money with capital. Secondly, the reason there is a lot of "unused" offshore capital is due to the capital gains tax to begin with. This is he main impetus for lowering it.
Finally, I shake my head whenever anybody suggests these public works programmes are going to accomplish anything but divert resources AWAY from productive purposes.
I'm confused over all the negativity over this. The US benefits from these overseas funds, which they don't now. US companies have an incentive to bring money back into the country - they can use it and not pay any more tax than they already have. Companies in the US pay less tax. Companies manufacturing in the US pay less tax. All the incentives flow towards more money in the US and more jobs. How does any of this ruin America?
The U.S. shouldn't benefit on income earned overseas. That's just crazy proposing this. No other country on earth does this. As it is, we have the highest corporate tax rate in the world. How would this even create jobs? All this does is provide more money for our government, who's spending is out of control.
Additionally companies won't sit by and just absorb the change, they will alter their business structure to maintain optimal profits (as is their fiduciary responsibility.) In all likelihood eliminating opportunities to repatriate future earnings. (For most, this would be cutting out the USA directly, such as by licensing the design to wholly independent foreign partners.)
Foreign earnings are just that, foreign. Those countries are not keen to suddenly see billions removed from their respective economies. (We already know what China will do.)
People want it to be spent for good. Giving it to the government is worse than letting it sit there.
It's like giving money to your cousin with a drug problem and telling him to use it to pay his rent. The end result: He's in the street, high as a kite.
If not government, then who will spend it for good? We can't rely on a system of arbitrary philanthropy.
If not government, then who will spend it for good? We can't rely on a system of arbitrary philanthropy.
Corporations spend it for good. Either they give it back to shareholders (who spend it, employing people) or they spend it on capital expenditures (which again, employs people). This is economics 101...
It's understandable that Apple will have more cash on hand than most, given their history, but they'd still love to have a lot of that overseas stuff back to play with.
The US does this to individuals not just corporations. Even citizens that have never set foot in the US (citizens by birth) have to not only file taxes each year they have to pay tax on anything over $90k earned and tell the US Treasury annually about every single bank account they have if any one of those accounts touched $10,000 at any point during the year. Basically they make you feel like a criminal for living outside the US...
I hoped that Obama of all people who actually had the chance to spend some time living overseas as a child would appreciate how much the US benefits from expats without punishing them...
Finally, I shake my head whenever anybody suggests these public works programmes are going to accomplish anything but divert resources AWAY from productive purposes.
The country needs infrastructure improvements to be more efficient. How is that not a productive purpose?
The country needs infrastructure improvements to be more efficient. How is that not a productive purpose?
Three words: "Shovel Ready Jobs."
Those turned out real well.
Seriously, go take an economics course. You'll thank me.
Three words: "Shovel Ready Jobs."
Those turned out real well.
Seriously, go take an economics course. You'll thank me.
There's no need to patronise. Your version of economics is broken. For all but the top 10%.
The mandatory 14 percent tariff could cost Apple as much as $2 billion up front, given that the company's overseas cash pile had reached as high as $140 billion last year.
I don't get the math. 140 billion x 14% = 19.6 billion, not 2 billion.
Can someone explain this? ...or does Appleinsider need a new calculator?
Sounds good to me
Why do you get to sit on your money that could be going to the government or the economy? How dare you be frugal!
Ah, you’re one of those.
Please show us a US company that paid anywhere close to the official 40% corporate tax. I own a corporation which paid very little tax in 2014. That is what accountants do - write off income.
Actually this is a terrible idea, high taxes in general are a bad idea. But in many cases these funds are or will be taxed in the foreign locations anyways, effectively the companies get taxed twice. Beyond that if you had read the article the tax rate would actually go down.
I'd be interested to know where you think the taxes ought to go because I suspect you want more "social" or welfare spending which is perhaps the worst way for the government to spend the taxes it places on Americans. Tax dollars are far better off invested in building for tomorrow, things like nuclear fusion research, NASA, physics and biology are far more constructive places to put the tax dollar. Tax dollars should result in payoff down the road and strong turn over of those dollars not the dead end spend on booze and drugs that currently happens.
Tax dollars are far better off invested in building for tomorrow, things like nuclear fusion research, NASA, physics and biology are far more constructive places to put the tax dollar.
People forget how much we advanced thanks to the space program in the '60s. Not to mention the prestige benefits.