You pay a tax once for a given amount of income, you pay interest every year. This whole thing only makes sense if they can eventually repatriate their earnings at a lower tax rate than they have and if the difference between that potential future lower tax rate and the current tax rate is larger than the accumulated interest paid until this moment.
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Apple Reportedly Planning for Investor Call Today Ahead of New Bond Sale
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They money / notes / 3rd party stocks they hold overseas also earn interests / dividends.
depressing
Shame that Apple is doing this with Deutsche Bank AG and Goldman Sachs Group.
Those companies should be broken up and most of the top brass deposited in prison.
Shame that Apple is doing this with Deutsche Bank AG and Goldman Sachs Group.
Those companies should be broken up and most of the top brass deposited in prison.
That is true, Apple is acting like a hedge fund, borrowing money and investing it at hopefully a higher return. Though whether it can get that higher return at the moment is questionable (unless it invests into riskier assets), not least because interest rates in a lot of other countries are pretty low at the moment.
This is almost like Apple borrowing money from itself (for which there are probably some limitations as it would de-facto be repatriating money without paying taxes), just that there are some intermediaries in between (eg, Apple buying bonds from a European bank which in return buys Apple bonds from that money).
Money ins't being taxed, income and profit are being taxed.
By your rational there would be almost no taxes paid anymore as most of the dollars out there were taxed when they were first produced and used in their first financial transaction.
Would you have trouble moving new currency into the system because everyone wants the old already-taxed money?
Pretty sure that isn't what I was saying. My point was that the same money it taxed to a rate well over 50% because it is hit multiple times even within a single transaction. I pay sales tax on a purchase. That money contributes to a company showing a profit, so it gets taxed again.
The same thing happens when someone acquires wealth then dies. Taxes were already paid on that money, then the government has their hand out again when a person dies.
If the government wasn't in the wealth redistribution business, and stuck to the core requirements of a government (infrastructure and public safety) then they could do with a whole lot less. Heck, if 10% is good enough for God, it should be more than enough for Uncle Sam!
