| | | More: As Apple holds $138B overseas, US Senate considers one-time tax break for repatriating cash
While Apple in the past has asked the U.S. government for a so-called "tax holiday" that would allow it to
bring its massive cash hoard back to America, the iPhone maker may finally get its wish, as both Democrats
and Republicans from the U.S. Senate said they are considering a one-time tax break.
Senators hope that a temporary reduction in taxes for bringing money back to the U.S. will replenish the
federal Highway Trust Fund for road construction and repairs. The program is set to run out of funds by
the end of August, according to Reuters.
Apple would potentially be the largest beneficiary of a U.S. tax holiday, as the company had $156 billion
in cash at the end of its last quarter, with just $18 billion of it held domestically. The company indicated
at the time that it has no plans to repatriate the massive $138 billion it holds overseas, saying that the
high taxes it would be hit with would not be a valuable decision for shareholders.
The company has lobbied numerous times for a tax holiday that would incentivize bringing that
money back to the U.S. Under current tax laws, companies face a 35 percent tax rate on profits
generated outside the country.
The last repatriation holiday in the U.S. came in 2004, when corporations were allowed to bring
foreign profits at a tax rate of just 5.25 percent. That one-time offer came well before the introduction
of Apple's iPhone, which has propelled the company to become one of the most profitable businesses
in American history.
More at: appleinsider.com
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