Make Repatriation Tax Receipts Great Again?

[the janitor]

Apple accelerates US investment and job creation

"Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made. "

https://www.apple.com/newsroom/2018/01/apple-accelerates-us-investment-and-job-creation/

probably a big sigh of relief for Apple now that they don't have this pending PR disaster hanging over their heads. I wonder home many more companies will be doing this as well?

 

[Autoprax]

Maybe getting while the getting is good?

 

[StuAzole]

Listing to everyone discuss, that money's going straight into stock repurchases and dividends. Hooray for the American workers!

 

[the janitor]

I wouldn't be surprised if that is where most of it goes. Still, that $38 Billion to the Fed Gov't will at least defray some of the costs associated with Trump's golf excursions.

 

[GDaddy]

Stock purchases and the like are putting money into businesses that grow those businesses, which includes investments in capital equipment, additional facilities and direct employment.

The idle rich don't just sit on cash because assets that aren't put to work in the economy will lose their value due to the effects of inflation. Only entertainers and athletes spend all their cash on retail consumption.

 

[StuAzole]

Stock purchases and the like are putting money into businesses that grow those businesses, which includes investments in capital equipment, additional facilities and direct employment.

The idle rich don't just sit on cash because assets that aren't put to work in the economy will lose their value due to the effects of inflation. Only entertainers and athletes spend all their cash on retail consumption.

Apple has made public their spending plans going forward. Bringing back this money does nothing to materially alter those plans. Honestly, Apple has more money than god with or without the overseas money. Brining it back will not enable them to do anything they couldn't already do if they wanted.

The only general benefit here is to the government and its tax rolls. For Apple, it's good PR.

https://www.bloomberg.com/news/articles/2018-01-18/here-s-what-wall-street-thinks-of-apple-s-cash-repatriation-plan

 

[Phi1]

Stock purchases and the like are putting money into businesses that grow those businesses, which includes investments in capital equipment, additional facilities and direct employment.

The idle rich don't just sit on cash because assets that aren't put to work in the economy will lose their value due to the effects of inflation. Only entertainers and athletes spend all their cash on retail consumption.

Deja Vu? Maybe it'll work better this time.

https://www.cnbc.com/2017/04/26/what-happened-the-last-time-companies-got-a-break-on-overseas-profits.html

 

[Sharkbiscuit]

Stock purchases and the like are putting money into businesses that grow those businesses, which includes investments in capital equipment, additional facilities and direct employment.

"the like" might be pretty broad but Stock purchases, if I may safely assume this means "Stock buybacks" don't do any of these things. Stock buybacks are a way to try to return value to the shareholders that they could realize as (long term) cap gains instead of dividends, or tax-free if it's HSA or Roth IRA or "the like". If I place a sell order on some JNJ or AAPL, and JNJ/AAPL use their repatriated earnings to purchase stock, it isn't raising capital for the company to invest in employment (err, automation). It's getting me some o' that sweet scrilla.

Some outfits got burned by this last cycle, when ol' Bushy Claus signed something similar, they bought stock back, and a few years later, they REALLY wish they had a pile o' cash.

 

[GDaddy]

Stock purchases and the like are putting money into businesses that grow those businesses, which includes investments in capital equipment, additional facilities and direct employment.

The idle rich don't just sit on cash because assets that aren't put to work in the economy will lose their value due to the effects of inflation. Only entertainers and athletes spend all their cash on retail consumption.

Apple has made public their spending plans going forward. Bringing back this money does nothing to materially alter those plans. Honestly, Apple has more money than god with or without the overseas money. Brining it back will not enable them to do anything they couldn't already do if they wanted.

The only general benefit here is to the government and its tax rolls. For Apple, it's good PR.

https://www.bloomberg.com/news/articles/2018-01-18/here-s-what-wall-street-thinks-of-apple-s-cash-repatriation-plan

Sorry but WRT Apple the question isn't what the money could/couldn't enable them to do but how they will most likely use it. Do you really think they're just going to stuff it in a bank account and take the losses from taxation/inflation? Or will they put that money to work for them in an attempt to outpace the effects of taxation/inflation?

When it's dividends or buybacks go to their investors what are those investors going to do with the cash? Bury it?

I do agree with you that tax revenues to the gov't will increase, though. Surely THAT doesn't bother you.

 

[Kento]

Stock purchases and the like are putting money into businesses that grow those businesses, which includes investments in capital equipment, additional facilities and direct employment.

The idle rich don't just sit on cash because assets that aren't put to work in the economy will lose their value due to the effects of inflation. Only entertainers and athletes spend all their cash on retail consumption.

Apple has made public their spending plans going forward. Bringing back this money does nothing to materially alter those plans. Honestly, Apple has more money than god with or without the overseas money. Brining it back will not enable them to do anything they couldn't already do if they wanted.

The only general benefit here is to the government and its tax rolls. For Apple, it's good PR.

https://www.bloomberg.com/news/articles/2018-01-18/here-s-what-wall-street-thinks-of-apple-s-cash-repatriation-plan

Sorry but WRT Apple the question isn't what the money could/couldn't enable them to do but how they will most likely use it. Do you really think they're just going to stuff it in a bank account and take the losses from taxation/inflation? Or will they put that money to work for them in an attempt to outpace the effects of taxation/inflation?

When it's dividends or buybacks go to their investors what are those investors going to do with the cash? Bury it?

I do agree with you that tax revenues to the gov't will increase, though. Surely THAT doesn't bother you.

If they’re smart, they’ll use that money to up their game against Samsung because Apple has really gone to sh!t since Steve Jobs died (sociopathic asshole that he was, he was quite brilliant and a visionary [I highly recommend the Walter Isaacson biography]).