Obama meeting with Steve Jobs, Eric Schmidt and Mark Zuckerberg today, offshore tax holiday might be discussed
Rumor has it that Apple is lobbying as part of a consortium of companies, to receive an offshore tax holiday for its cash war chest parked elsewhere in the world, and pay only 5% penalty in the process. Wait, so the money is not here?
No, it isn't. Google, for example, moves its profits out to tax heavens like Ireland or the Caribbean, thus managing to pay only 2.4% overseas tax rate for the last few years. Apple is reportedly doing similar moves, as well as other major companies.
If this money is returned back to the country, and a sort of tax amnesty is announced, the US could see an influx of cash as big as one trillion dollars, in times when the going is tough. There is a great chance this offshore tax heaven arrangement might be on the table at President Obama's meeting with the CEOs today.
source: RedmondPie, Bloomberg & CNN
1. Dihce (unregistered)
This kind of action should be illegal! If you're based out of and make your money in the U.S. then it should be kept here! Pay you're effin taxes, it's not like Google or Apple are hurting when it comes to the cash... this is ridiculous
12. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
How is it ridiculous? Why should they pay for politician's stupidity? Maybe if US citizen's would vote for a more competent president who's probusiness instead of trying tax every effing thing then we wouldn't be in this predicament. Oh wait, I forgot Obama likes to take his extravagant vacations lol.
2. Leefy (unregistered)
Unfortunately, nothing is illegal if you have enough money.
3. remixfa (Posts: 14255; Member since: 19 Dec 2008)
maybe if we didnt have a corperate killing 2nd corperate highest tax rate in the world they wouldnt do that. If you could keep 100 million of your money and reinvest it in new products, jobs, ect or simply hand it to the government because they demand it, which would you do?
The problem isnt the companies, its the absurd amount of taxes paid on it.
13. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
For once, I agree with something that you have said. US is too tax happy, mainly because Democrats want to be greedy bastards and tax you like crazy and then fill their pockets up like the corrupt politicians they are. And they wonder why so many companies movie their stuff overseas instead of keeping it here.
4. cnance (Posts: 8; Member since: 16 Dec 2010)
I agree with remixfa. Americas tax system kills businesses from the small to the large. It seem only the poor can get a head.
5. giantgnome (Posts: 67; Member since: 11 Feb 2011)
I run a small business, I'm not getting killed in taxes. You know what's really killing small businesses? Not being able to get loans, and that has nothing to do with taxes.
14. The_Miz (Posts: 1496; Member since: 06 Apr 2011)
Well, that's what the US gets for electing people like Obama and Clinton.
6. Mike the Pirate (unregistered)
The tax-hungry government, shady overpaid CEOs, and greedy unions are killing ALL business combined.
Don't fool yourself.
And, it's not political, as both sides of the coin are grimmey, not just one.
7. tragichero (Posts: 163; Member since: 07 Jan 2011)
tax hungry government? trickle down economics? greedy unions?!?!? Did PA get bought by Rupert Murdoch?
8. Jersey (unregistered)
Rupert Murdoch has a point.
10. downphoenix (Posts: 2892; Member since: 19 Jun 2010)
I figured someone like Apple or Facebook would stoop to this, but Google should be ASHAMED!
11. Facepalm (unregistered)
I really didn't understand why moronic comments such as the first one [the one that apparently the author didn't do the math] got thumbed up, and others with great arguments such as remixfa's got thumbed down...