…Apple has announced that as a result o Trump’s new tax law they will repatriate $350 billion into the US economy over the next 5 years, $38 billion in repatriated taxes! In addition, their move will create 20,000 new jobs in the US!
Bada-BING!
Shouldn’t this be headline news? Trump’s tax plan is already saving billions! But then Trump would have to be credited – and the media just can’t seem to work up the courage to say anything ‘nice’.
This is the first of many more to come given the most assertive tax reform in decades. This could be the beginning of a wave as others see the advantages. Those with the highest amount of cash overseas include; GE, Microsoft, Pfizer, Merck, Google Medtronic and Abbott Labs. It is estimated that $1.4 trillion in corporate cash is being held in various overseas accounts subject to a one time offer of 15.5% tax rate. That would amount to a cash infusion of $217 billion not including the associated jobs, and payroll tax revenue, not does it take into account the additional profits subject on an annual basis to the new corporate rate of 21%.
It is proof positive that Trump’s plan is a success and could have a ‘Yuge’ positive impact on the US economy while simultaneously negatively effecting those economies where the havens currently exist; Switzerland, Cayman Islands, Bermuda, Ireland, Puerto Rico, and The Netherlands.
Another possible loophole that could trickle down and up again would include all the individuals, as in the Panama Paper Caper, who may decide to capitalize on the windfall and incorporate in order to bring their money back as well via the 15.5% rate.
Within this revolution of cash infusion there is a hidden danger. As the money flows and the economy is bumped, the Federal Reserve is likely to start increasing the interest rate which will ultimately put a bit of a squeeze on equity stocks given their profits have not kept pace with their market prices. However, in the short term, profits will feel the pace of business through lower tax rates and greater infusion of money in the economy.
A balance could shift toward larger cap stocks as they will see the greatest benefit and feel the least pain.
There is also the trigger of interest rates on federal debt which were cut in half during the Obama term. If those rates go back t normal, the government’s interest spending could easily double unless debt is paid down. Trump’s fault? Hardly. Simply a mechanism he inherited.
But playing the swings could be a bit dicey if you don’t understand all the inherent dominoes being deployed.
In the meantime, the Liberal media will have to do some double talking, fast talking, hype in order to somehow convey how all this money infusion isn’t really a result of Trump’s Tax Reform, but something completely anti-Trump.
Add to the Liberal negative news that the economy is roaring, unemployment is low, black employment is at an all time high, and the Ozone hole is actually shrinking all by it’s lonely self, and the world seems to have gone from doomsday Revelation to a Halleluiah scenario.
Just sayin’…
55 years of owning & running businesses…. hum sure just like TRUMPed the con man. Apple to give up PROFITS for non important people & lose Stock holders… Please reality check, APPLE USES SUICIDE NETS to keep Chinese employees from killing themselves from horrible working conditions. Nov. 2016 APPLE COMPUTERS IN MEXICO has strikes & walkouts
In 1990 I was studying this TRUMP person & he is & was con man back then with a $400 MILLION DOLLAR LOSS from his $1 BILLION USA DOLLAR INHERITANCE… If you check the TRUMP financial REPORT you can see his “Wealth” is his claim of the value of his properties WHICH GOLDMAN SACHS OWNS ALL NOTES ON. Kind of Explains why TRUMPed has MORE GOLDMAN SACHS EMPLOYEES ON HIS WHITE HOUSE STAFF than any past president & why he has CEOs of Major Media in CHARGE OF THE FCC, Big Oil in charge of the EPA, Big Pharma in Charge of the FDA…. read history & financial reports before some FOX entertainment story… Oh, also TRUMPed FAMILY was awarded 6 CHINESE TRADEMARKS 2 weeks after the 2016 election. China does not allow many FOREIGN people to have TRADEMARKS in their COUNTRY, you must pay a lot of BRIBES TO GET THEM.
Who owns notes is irrelevant. Who owns your mortgage? The elections were in 2017 – not 2016… If Trump bought trademarks – that is not illegal. Your points don’t support my article. And your conclusions are opinion, not backed by fact. Please support your statements with hard facts and numbers.
Peter – your point is a bit disjointed and unclear. You make comments without supporting evidence – and Apple has the option to ‘give up profits’ – however, I doubt their analysis would support ‘giving up profits’ that is nonsensical. Instead their analytics most likely support the benefits – otherwise, if they wanted to lose money they simply would have remained in the US during the Obama administration wherein their profits were eaten by tax rates. Instead, like most corporations, they chose to set up accounts overseas. Perhaps you are not conversed in Economics and Accounting principles.