Trump's tax plan could save Apple big bucks if it repatriates overseas cash holdings



On the campaign trail, Donald Trump attacked Apple for a number of different reasons. Early in the year, he tried to start a boycott of the company because of its refusal to unlock an iPhone that belonged to a deceased terrorist. He also complained that Apple was manufacturing its products using overseas labor. He called for a 35% import tax on products made by U.S. companies in other countries.

Yet, Trump's proposed tax plan could actually help Apple save a ton of money if it becomes the law of the land. Thanks in great part to the iPhone, Apple currently has an astounding cash hoard of $237 billion. Close to $200 billion of that money is currently sitting in overseas bank vaults, collecting interest. A chart produced by Statista reveals that only $16.6 billion of Apple's cash holdings are in U.S. banks. Apple keeps its funds overseas so that the company isn't required to pay the top corporate tax rate of 35% in the U.S.

This isn't unusual in the corporate world. Many pharmaceutical firms keep money in overseas banks, and other tech firms like Google also keep a large amount of cash overseas. All of these companies, including Apple, will be given a chance to bring home a large amount of money at a significant tax savings according to the President-Elect's web site. Funds repatriated back to the U.S. will be subject to a one time tax of 10% instead of the current 35%.


We don't know how much money Apple would choose to bring back home if this Tax holiday becomes law. But considering that it would be a one-time break, we wouldn't be surprised if the tech titan wired at least half of its overseas cash holdings back home.


source: TrumpTaxPlan via BGR

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14 Comments

1. AlikMalix unregistered

Win-win!!

4. xondk

Posts: 1904; Member since: Mar 25, 2014

Some is better then none, sure. But they could...alternatively just close the loopholes allowing companies to do these things in the first place? Goes for most countries not just america.

7. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Just do both.

2. EC112987

Posts: 1216; Member since: Nov 10, 2014

Let's get ready to rumble!!! Lol

3. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Trump trolling the mainstream media so bad CNN NYT and MSNBC is looking like a total jerk. Especially the birther gathering. This is a lesson for phonearena, always be neutral. Too much negative news on Samsung will only make Samsung stronger, you're not helping. No more crooked, dishonest journalism

6. kiko007

Posts: 7506; Member since: Feb 17, 2016

Lay off the pot son......

8. tedkord

Posts: 17414; Member since: Jun 17, 2009

It's not pot. He comes by his mental deficiency naturally.

5. sissy246

Posts: 7124; Member since: Mar 04, 2015

Trump should make a law for any company that if you send your money overseas and not pay US taxes on it you pay a huge fine.

9. tedkord

Posts: 17414; Member since: Jun 17, 2009

Trump doesn't get to just make laws,and he has very little chance of getting something through that big business doesn't want with a Republican Congress.

10. kiko007

Posts: 7506; Member since: Feb 17, 2016

You have the education of a 5th grader if you even think something that elaborate would ever make it past his desk. He isn't a demigod, and Congress would be more than happy to show him that.

14. Guaire

Posts: 890; Member since: Oct 15, 2014

None is less than 10%. They are smart for paying no taxes.

15. CRodCLib

Posts: 10; Member since: Oct 19, 2016

Overseas banks do far more than collect interest. They use that to fund activities that stimulate economies. Here, we simply create money out of thin air courtesy the federal reserve. This begs the question: why even bother creating a new tax plan???

16. michaelny2001

Posts: 336; Member since: Aug 01, 2012

lol it doesn't make sense for Apple to bring this cash in. it already has lots of cash holdings in the US. Why would they bring it in here? why pay the 10% when the executives enjoy the cash outside the US? Not saying it's right, but financially for them doesn't make sense. They have enoiugh cash her eot buy companies, invest in R&D, buy back stock, etc.

18. ibend

Posts: 6747; Member since: Sep 30, 2014

lowering business tax and no tax for oversea funds? as expected from him.. since he also own tons of business, this rule also mean less tax for him and all of his congress friends business :-/

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