Apple says $60 billion will remain overseas until US tax law changes

Discussion in 'Politics, Religion, Social Issues' started by ericrwalker, Mar 20, 2012.

  1. ericrwalker macrumors 68030

    ericrwalker

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    #1
    http://thehill.com/blogs/hillicon-v...ng-foreign-cash-back-to-the-us-blames-tax-law

    Guess it's time to cut corporate taxes!!!

     
  2. quagmire macrumors 603

    quagmire

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    #2
    Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9B176 Safari/7534.48.3)

    I agree that companies shouldnt have to pay taxes on money that was already taxed in other countries.
     
  3. chris200x9 macrumors 6502a

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    #3
    Neither should people, taxing foreign income should be abolished.
     
  4. ericrwalker thread starter macrumors 68030

    ericrwalker

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    #4
    The difference here is people are always complaining about Apple (the richest company in the world) having so much overseas labor.

    In a time when our economy is bad, Apple says they won't bring the jobs here in the USA with current tax laws.

    We need jobs, and it seems the governments answer is to increase taxes to fix the economy.
     
  5. quagmire macrumors 603

    quagmire

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    #5
    Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9B176 Safari/7534.48.3)

    Sorry I call BS on the tax reason being the biggest issue blocking companies from hiring in the US. If there is demand, companies will hire more. If they are getting the production they need from their current workforce, they won't hire more people.

    If taxes were lower, the big execs will just pocket the bigger profits. They won't take that money to hire more people especially if they don't need it.

    Also, lower taxes doesn't change the fact that apple, etc can pay Chinese workers a whole lot less than us workers and don't have to deal with a union. China would have to raise taxes and workers pay to increase close to us workers for lower taxes here to work and get companies to move jobs back in the us.
     
  6. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #6
    Apple is sitting on how much domestic cash yet repatriation of other cash is what is causing them to not create jobs? Hmm.

    I think the US government should charge the difference of tax already paid and current rates as to not give an unfair advantage. I do not believe they should be charged a full tax rate on already taxed funds. Their line for supporting this type of law is complete and utter ******** though.
     
  7. mcrain macrumors 68000

    mcrain

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    Illinois
    #7
    Easy solution. Easy easy easy.

    Every penny that is overseas gets taxed at todays rate if brought home.

    Otherwise, it gets taxed at today's rate x3 tomorrow. If you never bring it home, we smack your ass with 5x penalty.
     
  8. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #8
    I'm perfectly OK with public corporations paying no personal income taxes. And, I will support such a change the day after a Constitutional amendment is passed that declares that corporations are not people and have no legal rights except as defined by law. In order to make up for the change, personal income taxes will have to be increased.


    https://en.wikipedia.org/wiki/Income_tax_in_the_United_States

    https://en.wikipedia.org/wiki/Taxation_in_the_United_States

    According to a lot of conservatives I've met over the years, the 1950's were the best years economically. Interesting to see what top marginal tax rates looked like then:

    [​IMG]
     
  9. CalBoy macrumors 604

    CalBoy

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    May 21, 2007
    #9
    I believe that the US tax code adjusts for that, so one only pays taxes on the income that was not taxed overseas (look up the foreign tax credit).

    The issue here is really whether Apple and the other companies with $1 trillion overseas will ever have to pay taxes on their income.
     
  10. Macky-Mac macrumors 68030

    Macky-Mac

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    #10
    and there's no guarantee they'll use any of this overseas money to create jobs in the US even if they get tax free repatriation


    they say they wont bring the money home.....they don't say anything about using it to create jobs........and why would they? Their plants are overseas giving them higher profits from lower labour costs and tax free repatriation isn't going to change that.
     
  11. thewitt macrumors 68020

    thewitt

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    #11
    You are incorrect on both counts.

    Both corporations and individuals who earn income abroad pay foreign income taxes and US income taxes.

    I am a US citizen working in Malaysia and am taxed twice on every penny I earn.

    The corporate tax relief for foreign income that is already taxed is capped, and that cap is very low.

    Apple and other major corporations want to spend their cash earned in other countries back in the US without paying US taxes on the money - since they have ALREADY been taxed in the country where this money was earned.

    No one is saying they don't want to pay taxes, only that it's not fair to pay twice!
     
  12. thewitt macrumors 68020

    thewitt

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    #12
    You honestly don't believe that if Apple spends $60,000,000,000 in the US, that jobs will not be created? Do you understand how economies work at all?

    They are not going to create manufacturing jobs in the US. The US government has made that unattractive for decades now.

    They will create jobs by buying products and services IN the US. Maybe even from YOUR business...allowing your boss to hire more people....
     
  13. Rodimus Prime macrumors G4

    Rodimus Prime

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    Oct 9, 2006
    #13
    Tax reform yes. Tax Holiday HELL ****ING NO.

    Reason for the hell no on the tax holiday is that the companies lied last time on it. They said bring that money home so money would be spent in the US and would create more jobs here.
    What happen is 90+% of the money went to investors/stock holders and executives. WHAT is worse is several companies moved even more jobs and profits off shores waiting for the next tax holiday. Because of these two reasons it is a hell no on a tax holiday.

    Companies lied last time in massive and failed to live up to the promises. If they want to bring the money home some VERY VERY heavy strings should be attached to it.
     
  14. thewitt macrumors 68020

    thewitt

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    #14
    You realize the alternative is they invest this money overseas, building up someone else's economy, right?

    Get over your left wing class envy and do what's right. Double taxation is NOT the right thing to do, getting that cash back into the US where it can be spent on US goods and services is.

    I don't even care if it all goes to executives. It's US wealth and will be spent in the US if these stupid, penal tax laws are reformed.
     
  15. Eraserhead macrumors G4

    Eraserhead

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    UK
    #15
    I really don't see why double taxation agreements aren't considered sensible.

    If you earn money in India you should pay taxes in India as you are relying on the Indian government to protect your business, the US government has nothing to do with it and shouldn't get any of that money.
     
  16. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #16
    Except knowing the corporations they are bribing local governments to get tax breaks. I think they should have to show taxes paid and have it meet the same amount as would be requested by the US.

    On a side note if corporations are people and the IRS is going hard after people with money stashed away in foreign banks, wtf? Seriously if I don't report a single account with 10,000+ in assets the IRS can penalize me for 25%+ of its contents plus if I didn't declare worldly income I am sure there are other penalties on top of that.
     
  17. Eraserhead macrumors G4

    Eraserhead

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    #17
    That never happens in the US...
     
  18. Macky-Mac macrumors 68030

    Macky-Mac

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    #18
    simply not true.....and if you really believe what you claimed, then you need to talk to whoever does your taxes for you to find out what you're really paying. American citizens working abroad receive a foreign earned income exclusion that's far greater than the average US family income

    And when it comes to corporations, the US tax code provides tax credits to offset taxes paid overseas

    your double taxation claim is bogus
     
  19. eric/ Guest

    eric/

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    Ohio, United States
    #19
    They get to have all the benefits. It's ridiculous. :rolleyes:
     
  20. samiwas macrumors 65816

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    Location:
    Atlanta, GA
    #20
    Yes, sometimes you wonder if people actually realize how taxes work. A full-time employee at a facility I work at sometimes will not, under any circumstances, work more than his 40 hours a week (or maybe it's once he gets to 50, whatever). His reason? After that point, you are actually paying the government to work, as they take out more taxes than what you make. I'm pretty sure he has brackets messed up.
     
  21. CalBoy macrumors 604

    CalBoy

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    #21
    Did you note the foreign tax credit I mentioned? Most expats don't end up owing Uncle Sam much because they pay comparable local income taxes. You still have to file (with the minimum income threshold higher than it is for domestic earnings), but you don't pay double taxes.
     
  22. rdowns macrumors Penryn

    rdowns

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    #22

    Domestic morons are going to kill this country.
     
  23. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #23
    To be fair he could be racking in millions for all we know. Foreign tax credits only go up to 80-90k iirc. If I ever pulled down heavy 6 digits I would just renounce citizenship.
     
  24. Macky-Mac macrumors 68030

    Macky-Mac

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    May 18, 2004
    #24
    he could be and more power to him if he is.....but he still wouldn't be paying tax on "every penny I earn"

    (the foreign earned income exclusion is $95,100 for 2012; in addition, there's a housing exclusion for those that get a housing allowance from their employer)
     
  25. CalBoy macrumors 604

    CalBoy

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    May 21, 2007
    #25
    That's the foreign earned income exclusion. The tax credit is different and is based on a ratio of your foreign earnings:domestic earnings and foreign taxes:domestic taxes. There is no theoretical limit to the foreign income deduction, you just have to document taxes paid.
     

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