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Non-Tech : Kirk's Market Thoughts
COHR 198.51+0.4%3:59 PM EST
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To: Gottfried who wrote (1591)7/6/2014 9:15:47 PM
From: Kirk ©  Read Replies (1) of 26763
 
Just think. We could get about 2 months of current level QE and more taxes right away if we let them bring it back to the US tax free.
Apple also tells investors what it would owe if it were to bring offshore profits home. It has amassed $54.4 billion in these earnings, according to its filings, and though it has no plans to repatriate the money, it said such a move would cost it $18.4 billion. That reflects a 33.8 percent rate.
If we let them bring that money home tax free and they paid it all as bonuses to the CEOs, then Apple's CEO would owe on that $54.4 billion
  • 12.3% in CA income taxes or $6.69B
  • 39.9% in Fed income taxes on $54.4B less $6.69B paid in CA taxes
    or 39.9% of $47.4B or another $19.4B
Total taxes paid would be $6.7B + $19.4B = $26.1B or a tax rate of 48.0%!

Let 'em bring it home and do with it as they wish. The bottom line is ALL the $54.4B would be in the US and taxing authorities would get nearly half of it if they were greedy and gave it all to the CEOs. Taxing authorities would get less if the companies actually invested the money and created jobs by investing it... but even the $54B to be spent in the US rather than sitting overseas would get the money into the economy. (Assuming they were not buying US treasuries in their overseas banks... which they probably are but I'd still rather have the money here)
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