Apple's calls for repatriation tax holiday gain no traction with White House

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With some two-thirds of its cash hoard housed overseas, Apple would like a tax holiday to allow it to move that money back to the U.S., but its pleas have fallen on deaf ears at the White House.

With $64 billion in cash remaining offshore, Apple executives said during a conference call on Monday that they have no plans to bring that money back to the U.S. because of taxes. For some time now, Apple has lobbied the U.S. government for a tax holiday that would give the company an incentive to bring that money stateside.

"Repatriating the cash would result in significant tax penalties," Apple Chief Financial Officer Peter Oppenheimer said. "The tax laws currently allow for a significant disincentive. We've expressed our views to Congress and the White House."

But despite Apple's pleas, both behind the scenes and public, White House officials are not interested in offering a "repatriation holiday" for corporations to bring overseas funds stateside, according to Talking Points Memo.

"A White House official told TPN that the Obama Administration specifically chose not to propose a repatriation holiday — a temporary tax break on overseas cash brought back to the U.S., which Apple and other tech companies have sought for years," Carl Franzen reported.

"Instead, the official told TPM that the White house in late February put forth 'a comprehensive corporate tax reform plan that simplifies the code, levels the playing field for American businesses and encourages investment here at home.'"

While Apple's interest in a tax holiday hasn't gained traction at the White House, the iPhone maker has found some support in Congress. Specifically, Democratic Senator Kay Hagan of North Carolina has been a key proponent of the Foreign Earnings Reinvestment Act.

"(This week's) announcement by Apple only highlights the need to pass common-sense legislation that would allow American companies to put $1 trillion of foreign earnings back to work in the U.S. economy," Hagan reportedly said. "our stagnant economy demands practical, creative and bipartisan solutions right now."

Hagan's plan, which has gained support from Republican Senator John McCain, would allow companies to return their profits to the U.S. at a temporarily reduced tax rate. Hagan believes it would trigger the flow of $1 trillion back into the U.S. economy.


http://www.appleinsider.com/article...oliday_gain_no_traction_with_white_house.html

:lol:

I never met a liberal that did not own something made from Apple.
 
a structured tax holiday would be a brilliant move....something along the lines of no tax on any money brought back into this country and used to create US jobs.....it wouldn't cost the country a cent and it would infuse the economy with hundreds of billions of dollars.....
 
PostmodernProphet said:
a structured tax holiday would be a brilliant move....something along the lines of no tax on any money brought back into this country and used to create US jobs.....it wouldn't cost the country a cent and it would infuse the economy with hundreds of billions of dollars.....
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Suggestions along this line will be met with strong suggestions of 1%er manlove circles including yourself, a cat, rubber suits, closets, and rope. Not necessarily in that order.
 
webbway said:
With some two-thirds of its cash hoard housed overseas, Apple would like a tax holiday to allow it to move that money back to the U.S., but its pleas have fallen on deaf ears at the White House.

With $64 billion in cash remaining offshore, Apple executives said during a conference call on Monday that they have no plans to bring that money back to the U.S. because of taxes. For some time now, Apple has lobbied the U.S. government for a tax holiday that would give the company an incentive to bring that money stateside.

"Repatriating the cash would result in significant tax penalties," Apple Chief Financial Officer Peter Oppenheimer said. "The tax laws currently allow for a significant disincentive. We've expressed our views to Congress and the White House."

But despite Apple's pleas, both behind the scenes and public, White House officials are not interested in offering a "repatriation holiday" for corporations to bring overseas funds stateside, according to Talking Points Memo.

"A White House official told TPN that the Obama Administration specifically chose not to propose a repatriation holiday — a temporary tax break on overseas cash brought back to the U.S., which Apple and other tech companies have sought for years," Carl Franzen reported.

"Instead, the official told TPM that the White house in late February put forth 'a comprehensive corporate tax reform plan that simplifies the code, levels the playing field for American businesses and encourages investment here at home.'"

While Apple's interest in a tax holiday hasn't gained traction at the White House, the iPhone maker has found some support in Congress. Specifically, Democratic Senator Kay Hagan of North Carolina has been a key proponent of the Foreign Earnings Reinvestment Act.

"(This week's) announcement by Apple only highlights the need to pass common-sense legislation that would allow American companies to put $1 trillion of foreign earnings back to work in the U.S. economy," Hagan reportedly said. "our stagnant economy demands practical, creative and bipartisan solutions right now."

Hagan's plan, which has gained support from Republican Senator John McCain, would allow companies to return their profits to the U.S. at a temporarily reduced tax rate. Hagan believes it would trigger the flow of $1 trillion back into the U.S. economy.


http://www.appleinsider.com/article...oliday_gain_no_traction_with_white_house.html

:lol:

I never met a liberal that did not own something made from Apple.
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Awww, those caring folks :rolleyes: wanting to bring the money "home".

At the expense of being branded a conspiracist there may be a couple of reasons why. First, the country in which the money is held may devalue compared to the dollar. Second, the counry in which the money is held may, at some time, refuse to allow large amounts to be exported.

Of course, there is always the possibility the "owners" of such funds want to bring the money back as personal income without having to pay the appropriate tax.

Regardless of the reason one can rest assured the company(s) involved are NOT making the request on behalf of the country. Before any laws are changed it would be wise to find out the reason and/or stipulate exactly how that money may be used/dispersed. Furthermore, what example does that set for companies that remained here and employed US citizens and paid the necessary taxes? Fire US employees, move overseas, make money, then bring the profits back home at reduced tax rates. Is that the message the government wants to send?

As for the pleas having "fallen on deaf ears" I think it's more a case of the pleas having fallen on ears that recognize a scam when they hear it.
 
Damocles said:
Suggestions along this line will be met with strong suggestions of 1%er manlove circles including yourself, a cat, rubber suits, closets, and rope. Not necessarily in that order.
Click to expand...

if you throw in a whip I'll be able to use those against the people who make the suggestions........
 
PostmodernProphet said:
you realize, I suppose, that they've already paid taxes in the country where the money was earned?.....well, maybe you don't realize it.....
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The question is, "How much did they pay?" If there is a difference are they willing to pay the difference?

Some countries have an agreement re:taxes. For example, if a Canadian wins a US lottery they are taxed in the US and that is deducted from any tax they may be obliged to pay in Canada. Canadian government lotteries are tax-free but foreign winnings are taxed.

Now I got myself thinking about the casino. ;)
 
apple0154 said:
The question is, "How much did they pay?" If there is a difference are they willing to pay the difference?

Some countries have an agreement re:taxes. For example, if a Canadian wins a US lottery they are taxed in the US and that is deducted from any tax they may be obliged to pay in Canada. Canadian government lotteries are tax-free but foreign winnings are taxed.

Now I got myself thinking about the casino. ;)
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Would this change the reality of the very real disincentive that keeps the money from being invested in the US?
 
This has been tried before and flopped as far as job creation. All it really is is another huge tax break for the wealthy.
 
Rune said:
This has been tried before and flopped as far as job creation. All it really is is another huge tax break for the wealthy.
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Does the money remaining where it is at change that picture at all? The reality is, they have no incentive to bring the money to the US, whether to invest it in the markets (better than investing it elsewhere) or to invest it in research for the next product. (Creates jobs). If it even creates a few it is better than leaving it overseas to be invested there. Giving a repatriation, if it is invested in some way towards new job creation, is better than doing nothing and letting the money continue to be invested elsewhere.

I'm surprised that you expect instant gratification in jobs from something like this, but still believe that the Trillions we've spent on stimulus in one form or another through government is all good regardless of how meager the production of jobs may be.
 
Damocles said:
Does the money remaining where it is at change that picture at all? The reality is, they have no incentive to bring the money to the US, whether to invest it in the markets (better than investing it elsewhere) or to invest it in research for the next product. (Creates jobs). If it even creates a few it is better than leaving it overseas to be invested there. Giving a repatriation, if it is invested in some way towards new job creation, is better than doing nothing and letting the money continue to be invested elsewhere.

I'm surprised that you expect instant gratification in jobs from something like this, but still believe that the Trillions we've spent on stimulus in one form or another through government is all good regardless of how meager the production of jobs may be.
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Must defend tax breaks for wealthy regardless of cause.
 
Rune said:
Must defend tax breaks for wealthy regardless of cause.
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I am asking questions, do you have the ability to actually answer them? How is it better in any way for the US to insist that the money stays where it is? What do you think would be better for the US, a program that allows a tax "holiday" if the money is spent towards job creation, or a stubborn refusal to provide any incentive for them to invest the money in the US?
 
Damocles said:
I am asking questions, do you have the ability to actually answer them? How is it better in any way for the US to insist that the money stays where it is? What do you think would be better for the US, a program that allows a tax "holiday" if the money is spent towards job creation, or a stubborn refusal to provide any incentive for them to invest the money in the US?
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Get off the fucking goofy pills will you? No one is insisting the money stay where it is, they can bring it back any time they like. They just want to be able to do it for free or at greatly reduced rates, and that is what you are defending.

How about changing the laws so the companies are not insentived to earn their capitol elsewhere in the first place? That is an actual issue, this is not.
 
Rune said:
Get off the fucking goofy pills will you? No one is insisting the money stay where it is, they can bring it back any time they like. They just want to be able to do it for free or at greatly reduced rates, and that is what you are defending.
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Again. I am asking questions.

Do you believe that there is any incentive for them to bring the money back to the US, or that it might be good policy to have free (not paid for by government debt) jobs investment at this time?

How about changing the laws so the companies are not insentived to earn their capitol elsewhere in the first place? That is an actual issue, this is not.
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Do you believe I would be against changing the tax laws to give incentive to keep the money here to begin with? That's a silly assumption, can you tell me where it is based?
 
Do you believe that the repatriated funds will be invested in the US or simply paid as dividends to the stockholders?
Do you have any proof at all that the money will be invested, even if it only creates long term jobs?
 
Rune said:
Do you believe that the repatriated funds will be invested in the US or simply paid as dividends to the stockholders?
Do you have any proof at all that the money will be invested, even if it only creates long term jobs?
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Do you believe that you could write up some legislation that gives the tax break only if it is spent in specific ways thus giving incentive towards repatriation of the funds only if it is spent on job creation or research?
 
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