Trump tax cuts could be big for Apple and other tech companies

Source: http://ift.tt/zff6tj --- Wednesday, September 27, 2017
For Apple and other Silicon Valley tech companies, tax cuts being proposed by President Donald Trump and the Republicans could be huge. The framework that will act as a jumping-off point for Congress to revamp the U.S. tax code includes a proposal to cut corporate taxes to 20 percent from the current 35 percent, and language about making changes to “[stop] corporations from shipping jobs and capital overseas” and reducing taxes on foreign profits. Apple alone holds $231 billion overseas, or 94 percent of the $246 billion cash hoard the company had as of the end of 2016, according to a Moody’s annual investor report, released in July. As they sought to avoid repatriation taxes, the total amount of cash held overseas by U.S. companies climbed to $1.3 trillion at the end of 2016, up from $1.2 trillion in 2015, Moody’s said. During his presidential campaign last year, Trump promised a one-time repatriation rate of 10 percent, but that figure wasn’t included in the nine-page proposal his administration released Wednesday. The proposal says: “The framework transforms our existing ‘offshoring’ model to an American model.” It says it will do that by “taxing at a reduced rate and on a global basis the foreign profits of U.S. multinational corporations.” Apple CEO Tim Cook made quite a statement of his own last year about his company’s cash hoard. He said during an interview with RTE radio in Ireland that the company had “provisioned seve ...

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