Larry Horist | Nov 18, 2022 | 52
Apple to Bring $200 Billion Back to US
Apple will soon bring the majority of its foreign cash reserves back into the United States to take advantage of the tax breaks it will receive under the GOP tax bill passed on December 22nd.
The repatriated money will go straight into America banks, which will use it to make loans to Americans. This will provide a huge boost to the American economy.
“With over $250 billion stashed overseas, Apple stands to pay roughly $40 billion under the deemed repatriation provision of the new law,” reports Seeking Alpha.
The GOP tax overhaul includes a provision that allows large corporations like Apple to repatriate foreign cash at a one-time cost of 15.5% for profits in cash and stock and 8% for profits invested in real estate. Before the policy change, companies would have had to pay a 45% rate.
“When Apple CEO Tim Cook famously donated lavishly to Republican Speaker of the House Paul Ryan, people wondered what the two could ever have in common politically. Now, we know: taxes,” continues the report.
Such a large influx of cash has fueled speculation that Cook could go after a large acquisition, such as Netflix, but it is more likely the extra money will go towards stock buybacks and a dividend increase.
It has been less than one month since the GOP tax bill became law, and we are already seeing dramatic results. In addition to the announcement from Apple, over 100 companies have already handed out bonuses to employees, boosted philanthropic donations, and made plans to increase US investment.
Editor’s note: This shows how savvy Trump is in the economic realm, his cause-effect understanding is right on track.