TCJA: Apple repatriating cash and pumping it into US economy

[Brian37]

https://www.cnbc.com/2018/01/17/apple-an...years.html

• Apple says the new tax law will help it will contribute $350 billion to the U.S. economy over the next five years.
  
  
• It says it will create 20,000 new jobs and open a new campus.
  
  
• Apple expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States.
  

That is STILL only 1 company while THE economic experts are STILL predicting a 1.2 trillion add to the DEPT over 10 years for all big corps. 

I bet their 38 billion in taxes  will pale in comparison to the tax breaks they get over the same time, still not taking into account ALL giant corporations. 

If you want to argue 1 company is trying to do the right thing, it would STILL be 1 company, even if I agreed.

[Amarok]

Wanna bet who they needed to fuck over or more how many they needed to fuck over  to make this deal work. Can't wait to hear about the apple layoffs . Already one thing that stands out is over the next 5 years . A lot can change in 5 years So Beta boasting about a plan which may be canceled by next year  . And of course the fact this rewards companies who have pushed the majority of their assets overseas. So much for America first .

---

I find it hilarious how desperate Beta is to try and dig through the mountain of shit. To try and find a sliver of something other then shit . But only finding harden shit . 

Trump has achieved nothing and trying to cherry pick does not make him any less a failure .

[Fake Messiah]

Here’s what’s actually going on. As part of its transition to a new system of International taxation, the Republican tax bill included a big, one-timed levy on all the profits U.S. corporations have been hoarding abroad for years. (This is known as a deemed repatriation.) Apple has been sitting on a giant overseas money hoard worth $252 billion. Today, we learned it would pay $38 billion to the IRS as the cost of bringing that cash home.

And what else did we learn? Not a ton. The press release predicts that between its “current pace of spending with domestic suppliers and manufacturers—an estimated $55 billion for 2018—Apple’s direct contribution to the US economy will be more than $350 billion over the next five years.” In other words, Apple will keep buying stuff from other U.S. companies. This is not a patriotic act of charity. Apple is literally saying it will continue business as usual. That alone accounts for $275 billion of its $350 billion forecast.

The 20,000 jobs are nice. (Apple says it currently employs 84,000 U.S.) But there’s no evidence, contra Fox’s talking heads, that they’re coming “back to America” from anywhere. Meanwhile, it’s hard to tell if the $30 billion the company plans to spend would actually be a meaningful increase in its domestic U.S. investment. According to its annual reports, Apple has devoted $56.9 billion to capital expenditures worldwide over the past five years. Presumably, a good chunk of that was spent stateside, building out its retail network and its gleaming new Cupertino campus, for instance. But it’s hard to know how much. “The company has not given guidance in the past regarding where and how capital spending was allocated. This is the first I heard of a specific allocation,” Asymco analyst Horace Dediu told me in an email. So, maybe Apple really is “accelerating” it’s U.S. investment. Maybe it’s not. There’s no actual way to tell based on the information it’s shared publicly.

That brings us to the separate question of whether this spending has anything at all to do with Trump’s tax bill. The answer is almost surely not. Apple has long paid an extremely low tax rate, and it is only really bringing its overseas profits “home” on paper. In reality, the company has always been able to access that money by borrowing against it at dirt cheap rates, which it’s previously done to fund dividends and buybacks for its investors. The specific investments Apple announced today, such as the more than $10 billion it plans to spend on new data centers to support its growing cloud-based businesses like Apple Music, are things it likely would have needed to do not matter what happened in Washington.
https://slate.com/business/2018/01/no-ap...-bill.html

The reality: With the exception of some computers made in the U.S. and Ireland, nearly all of Apple's hardware products are made by outsourcing partners in Asia. Apple reportedly asked its Chinese suppliers what it would take to relocate production of the iPhone stateside, but cost is the biggest barrier. Apple has also long said that it has better access to skilled workers in China. And building the iPhone here would lead to higher prices for consumers.

De ja vu: Trump isn't the first president to ask Apple to bring jobs back to American soil. When President Obama asked how it could be done back in 2010, Apple's late CEO Steve Jobs said bluntly, "Those jobs aren't coming back."
https://www.axios.com/the-reality-on-tru...a4df7.html

[The Industrial Atheist]

If a common citizen dodges their taxes it's jail time for them. The rich shouldn't be treated differently.

[Mister Agenda]

There are some significant moves here by Apple (though not necessarily as significant as they're being made out to be) and I'm glad they're happening. Sounds like it will add some jobs to the American economy, and that's a good thing. That said, as someone who works in a big corporation, corporations have a knack for taking something they were going to do anyway or that is only a minor change from what they were going to do anyway and spinning it as linked to some policy they like. Big companies don't spin on a dime.

OTH, there's no reason the tax plan shouldn't have some good effects, particularly in the short run. The main pain comes if the expected revenue that is supposed to justify it doesn't materialize; in which case the most significant long-term result is underfunded programs and a much bigger national debt while big companies and the rich cash out in the short-term. Tax cuts aren't always bad, but these seem to be cuts for the sake of cutting.

[Thumpalumpacus]

I hope it pans out as Apple has promised. I'm sure that $38b will go a long way to paying down the $1tr deficit in the 2018 budget.

[Minimalist]

Fuck Apple.

http://money.cnn.com/2016/08/30/technolo...index.html

How Apple paid just 0.005% tax on its global profits

[Amarok]

Fuck Apple.

http://money.cnn.com/2016/08/30/technolo...index.html

How Apple paid just 0.005% tax on its global profits

And there it is 

Never trust a corporation .

[Neo-Scholastic]

It's 35% through 12.31.17, 21% beginning 1.1.18.

But, by keeping profits out of the country, US corps have been able to avoid taxation. Part of the TCJA is that corps will be taxed one time on their foreign profits, at a reduced rate and payable over 8 years. This will result in big tax collections and investment in US business. People calling the act corporate welfare just don't really understand the point.

Ok, so Apple is going to pay this $38 billion over eight years.  That works out to a little less than 5 billion per year, or (very roughly) $14.00 for every person living in the US.

Don't spend it all in one place.

Boru

Way to focus on the small picture. Apple is just one of many and it will add up as more and more companies follow their example. Besides, that's 5 billion Obama decided he didn't need to pay for the massive debt he incurred.

In less than 2 year's Trump has revived an economy that was stagnant for 8-years under Obama. It cracks me up the way you guys are trying to explain away success. It's almost like you WANT the economy to tank just to prove you weren't wrong.

[The Grand Nudger]

Call me back when any of it offsets the deficit bomb.  Fiscally irresponsible "conservatives".....