Estimate: GOP repatriation tax break saves Apple $47 billion

From Fortune.com:

Apple may see up to $47 billion removed from its tax bill if Republicans continue with their current tax reform plan, qualifying it as the biggest beneficiary of the legislation that’s currently working through Congress.

While details of the tax legislation reform are yet to be finalised, Senate and House have converged over the last few days over their treatment of the estimated $1.3 trillion of cash American companies hold offshore. The vast scale of the tax cut has been the focus of discussions, based on calculations by the Financial Times and tax experts.

My take: Sounds about right. Apple, of course, would also benefit from a cut in the corporate tax rate.

See also: The big winner under the GOP tax plan is… Apple Inc.

2 Comments

  1. David Drinkwater said:

    Well, this is what happens when you stick to your knitting for long enough.

    Although Apple seems to be targeted for its “liberal” stance on things like hiring and diversity, Apple is fairly conservative in how it does its business (“keeping powder dry”) and has had the sense not to limit its business practices to the USA.

    So they make money abroad and choose not to bring it back until the terms are right.

    And I think that, after years of “trickle down economics” failing, the terms are about to change. I give no credit for this to Trump or the “conservatives” who may finally have to make the change. They will be abject political failures, and 2018 will be an electoral slaughter, if they don’t change. They aren’t doing this because it’s right. They are doing this to stay in office.

    Apple is a tangential beneficiary. (IMNSHO)

    1
    December 6, 2017
  2. Fred Stein said:

    Disclosure – fanboy, not a fan of GOP tax plan in it’s entirety..

    But under the new plan Apple will pay $31.6B Tax on the repatriated cash. This could quash the EU attempt to grab those tax revenue, which they are actively trying to do. Better we get the tax than the EU. Heck, the EU get a ton of VAT on Apple product sales.

    Adding to irony, the GOP tax plan reduces the deductibility of interest paid on bonds which will force coupon rates higher. Hah! Apple has borrowed $10’s of B’s at various maturities. As these mature, Apple can pay them off with the overseas cash.

    2
    December 6, 2017

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