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Will Apple soon be able to bring back $100 billion in cash from overseas due to tax holiday?

Written by Andre Yoskowitz (Google+) @ 11 Jun 2014 21:30 User comments (6)

Will Apple soon be able to bring back $100 billion in cash from overseas due to tax holiday? Apple may soon be able to bring back over $100 billion in cash they hold overseas as Senate Democrats and Republicans are meeting to consider offering a one-time tax break if corporations repatriate such stashed profits.
U.S. Senate Minority Leader Mitch McConnell says Republicans have considered the "tax holiday" and "it enjoys a good deal of support in our conference."

The "holiday" would give American companies a significant cut in the amount of taxes they pay on profits earned abroad, giving them an incentive to bring the money home. The government anticipates a massive surge in revenue that will then be used on transportation-based construction and repair projects through the federal Highway Trust Fund. The Fund will be out of money by August if nothing is done.

Currently, U.S. law states that American companies do not have to pay the standard 35 percent corporate income tax on overseas profits until they are brought back. Most of these earnings never come back due to lower tax rates overseas in places like Ireland.

A similar repatriation holiday was enacted in 2004, at a 5.25 percent tax rate, which brought back home tens of billions of dollars.

Source:
Reuters

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6 user comments

112.6.2014 1:34

Of course offering a tax holiday for the peasants wouldn't help anyone. Let's give it to the trillion dollar corporations instead.

212.6.2014 5:24

Yeah, let's allow the already wealthiest another huge tax-break & load those at the bottom & middle even further.

Meanwhile get the media & the various mouth-pieces squalking about how raising the minimum wage or having decent public services etc etc is a strain too far.

312.6.2014 8:46

There must be some good that would come from having that money back in the US. I hope Apple would spend it in some way or maybe pay dividends out to shareholders. Not all of them are 1%'ers.


Just my $0.02,

dEwMe

412.6.2014 10:02

Sounds about right for Congress.

Lets just give corps a short tax break to bring the cash back home instead of fixing the loopholes which let corps get away with tax evasion to begin with.

513.6.2014 11:30

Originally posted by bhetrick:
Sounds about right for Congress.

Lets just give corps a short tax break to bring the cash back home instead of fixing the loopholes which let corps get away with tax evasion to begin with.
Exactly. Always another band-aid. Entire tax system needs reform, personal and corporate.

613.6.2014 20:20

Originally posted by dEwMe:
There must be some good that would come from having that money back in the US...........Not all of them are 1%'ers.
You should take a look at how charity tax regs have been used & abused by the likes of Walmart solely to further enrich the already most rich.

If you still believe in some sort of 'trickle down' effect I'd suggest it's not real wealth trickling down but something altogether more loathsome falling on us...as the 1%'ers laugh all the way to their gated & armed security mansions.


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