Apple to Bring $200 Billion Back to US
Posted on Sunday the 7th of January 2018, by Alice Greene : Staff Writer
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.
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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.
Comment: So what will Apple do with $200 billion? buy back stock? if so, buy Apple stock now. invest in more assets? buy Apple stock now. Keep it for use at some other time? buy Apple stock now.
and what will buying more assets do for the economy? lots. purchasing "stuff" has a huge multiplier effect that does not happen from investing in services.
the professional investment firms already expected this. It might be too late to buy Apple stock. one of my financial managers started buying tons of Apple for us several months ago.
How many other companies are going to repatriate moneys? and what will that do to their stock prices and the economy? what will it do for IRA values?
and liberals keep trying to convince us that Trump is unfit and stupid. they told us that the economy and stock market would implode with Trump. and now they keep trying to convince us that 2017 happened because of Obama policies. bull crap!!! just as with global warming, those so-called intellectuals have no idea how things happen in the real world ... only theories.
Do you think that Obama will try to take credit for this also?
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