I will return to it soon, as pharmaceuticals, bio-science and technology companies, among others, make similar moves -- because one thing the otherwise awful "tax package" may do. . . is spur the return of parked overseas cash, by the largest public US companies, by market cap.
I will have more, and soon -- as I expect Merck, Pfizer, Amgen and others will make a similar series of moves -- though not remotely on this scale. Apple holds some $320 billion in overseas cash -- while Merck and Pfizer are each under $100 billion. Overall, it is reliably estimated that some $3.1 TRILLION is parked outside the US -- in similar fashion.
That's some pretty pennies, there Corporate America. Still -- I am ambivalent about whether we have priced the return tax too cheaply -- too favorably, to big international businesses, given all the other rate cuts for them in that package. Here's Bloomberg, on it all, tonight:
. . . .Apple said it will bring hundreds of billions of overseas dollars back to the U.S., pay about $38 billion in taxes on the money and spend tens of billions on domestic jobs, manufacturing and data centers in the coming years.
The iPhone maker plans capital expenditures of $30 billion in the U.S. over five years and will create 20,000 new jobs at existing sites and a new campus it intends to open, the Cupertino, California-based company said Wednesday in a statement. Apple’s shares rose 1.7 percent to a record closing price of $179.10 in New York.
“We are focusing our investments in areas where we can have a direct impact on job creation and job preparedness,” Chief Executive Officer Tim Cook said in the statement, which alluded to unspecified plans by the company to accelerate education programs.
Apple also told employees Wednesday that it’s issuing stock-based bonuses worth $2,500 each following the new U.S. tax law, according to people familiar with the matter. . . .
And for Apple's relatively high-earning general rank and file, the $2,500 each isn't really much scratch -- though it will be taxed as capital gain on sale of the stock -- saving them a bit at the IRS 1040 window.
That said, getting $38 billion into the US Treasury general fund -- "without a shot fired" -- is always a good thing.
As I say, expect much more of this in the coming weeks. But this is no credit to 45 -- it is a credit to tax lobbyists, in the halls of Congress. Now you know -- it is highly likely that 45 doesn't even understand it (but he certain to crow that it was ALL his doing). Keep it spinning in good karma. . . as it is black tie season here. I'm out!
नमस्ते
No comments:
Post a Comment