US looks to take a bite out Apple's $54bn overseas profits

[dkf]

US looks to take a bite out Apple's $54bn overseas profits
Peter Oppenheimer, Apple's finance director, was quick to remind analysts last month that not all of its $81bn (£51bn) of cash is in America. Not even half.

Some $54bn of the lucre Apple's reaped from its iPods, iPhones and iPads is outside the US. Wall Street analysts are clamouring for new chief executive, Tim Cook, to use share buy-backs and dividends to ensure the cash gives an already turbo-charged share price an extra kick. But it's not just Wall Street eyeing Apple's billions. Washington is, too.

Apple's pile is a mere fraction of the $1 trillion to $1.5 trillion of profits that JPMorgan Chase estimates US companies have locked away overseas. As the US recovery stumbles, this wall of cash is becoming an increasing source of agitation to some in Congress. And it revolves around the hottest political and economic subject in America at the moment: tax reform.

Unlike many other tax regimes, US companies are required to pay a corporate tax rate – nominally 35pc – on profits they earn overseas. The catch, though, is that companies only have to cough up when they bring the money home. It's the main reason many, particularly technology and pharmaceutical businesses, don't.

http://www.telegraph.co.uk/finance/comment/8865254/US-looks-to-take-a-bite-out-Apples-54bn-overseas-profits.html

[msongs]

1. apple exports US work, then can't spend it's wage slave profits at home. boo hoo so sad. nt

[DainBramaged]

2. But but shiny

I can't wait for the Apple cultists to come on and tell us this is ok...........

[Sherman A1]

3. I believe we need to change the tax laws

in that case. Apple is gaming the system, certainly and while I like their products, their business practices in many cases... not so much. Yet I have to ask, why would a company or individual not take advantage of the rules as best they can. Do any of us skip a deduction we can take on our 1040?

[DainBramaged]

4. Apple pays NO dividends, what is the point of hording that cash?

Doesn't it at least belong to the shareholders? Why are they an exception, good products or not.....