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Donald Trump Tells Tim Cook He'll Offer Apple 'Very Large Tax Cut' to Make Products in America
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As much as he is reviled, this should be Trump's bread and butter, at least more than any other issue. He says he understands business, money, and trade better than anyone. His voters think he understands business, money, and trade as well as anyone. I'm really interested to see if this career businessman will make as much difference as people hope (or fear) he will. So far he has kept several promises and broken one or two. One thing's for sure -- he is definitely shaking things up, which can be good for an economy that was somewhat stagnated.
Apple would score major points if they could move something as high-volume as the iPhone's production to the USA. The Mac Pro is a bitter subject, but that was one of the big selling points when it was released. Imagine the free publicity and how much they would promote "Designed by Apple in California. Made in the USA." if they could put it on the iPhone. It's going to take companies like Apple, with large cash reserves, to bite the bullet and absorb some costs in order to get the industry trends changed. But if they can pull it off, our country should be much better for it.
Apple would score major points if they could move something as high-volume as the iPhone's production to the USA. The Mac Pro is a bitter subject, but that was one of the big selling points when it was released. Imagine the free publicity and how much they would promote "Designed by Apple in California. Made in the USA." if they could put it on the iPhone. It's going to take companies like Apple, with large cash reserves, to bite the bullet and absorb some costs in order to get the industry trends changed. But if they can pull it off, our country should be much better for it.
If you bring back manufacturing you revive the economy. We can't keep opening more retail outlets and hope that everyone continues to spend more than they make to prop up the economy. I live in Ontario and our factories have been decimated since 2008 and its crushing the province.
We've seen that Apple under TC is profit margin model. So moving production to the US is likely not appealing at this moment.
And, I don't think TC, having built up an extensive supply chain with his wealth of experience will fall for Trump's 'Made in America' BS.
Trump has no concept of an international business that involves millions of stakeholders. He knows how to open pretty looking buildings by bullying suppliers, but thankfully that doesn't fly in a multinational company.
You have a moron as a president. He has only superficial knowledge of any topic. He tells people what they want to hear, which is why people fell for his campaign rhetoric, which he is now reneging on.
Heeeeeere comes hyperinflation.
I recommend that Trump supporters read this piece in its entirety:
http://www.newyorker.com/magazine/2016/07/25/donald-trumps-ghostwriter-tells-all
The short of it is that he is only concerned with himself and is quite bad at business.
And, I don't think TC, having built up an extensive supply chain with his wealth of experience will fall for Trump's 'Made in America' BS.
Trump has no concept of an international business that involves millions of stakeholders. He knows how to open pretty looking buildings by bullying suppliers, but thankfully that doesn't fly in a multinational company.
You have a moron as a president. He has only superficial knowledge of any topic. He tells people what they want to hear, which is why people fell for his campaign rhetoric, which he is now reneging on.
Heeeeeere comes hyperinflation.
I recommend that Trump supporters read this piece in its entirety:
http://www.newyorker.com/magazine/2016/07/25/donald-trumps-ghostwriter-tells-all
The short of it is that he is only concerned with himself and is quite bad at business.
I'd really wish that after Trumps slaps a 45% import duty on products from China, all phone manufacturers raise their prices by 45% to make it clear that there is no such thing as a free lunch.
How does the US make its money? From taxes.
Do you think cutting taxes alone would bring manufacturing back to the US when all the parts are made in China? What about the workforce needed?
You see no issues with this?
As technology advances those jobs are no longer desirable. Blue collar workers should be re trained and learn new skills.
China has said they would apply a tariff on US products. This would hurt US exports. People also forget that the tariff is on the WHOLESALE price, which would result into a HIGHER increase on the retail price.
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Trump will make a deal, a really great deal, he has all the top people, so American will win again. We'll get tired of winning with Trump's great deals, I can tell you that. You know it, I know it, everybody knows it. Believe me.
Apple is coming back, right after we build the wall. A really great wall.
Apple is coming back, right after we build the wall. A really great wall.
And what percentage of unemployed (or seriously underemployed) people is actually on welfare?
America is no longer a manufacturing country. We have passed that stage of economic development.
The same Americans wanting their manufacturing jobs back, will then not be able to even afford the goods they are manufacturing. Tax cuts aside, the iPhone couldn't stay the same "low price" it is now.
China can live without America, we cannot live without China. This plan would backfire, 'tremendously'
The same Americans wanting their manufacturing jobs back, will then not be able to even afford the goods they are manufacturing. Tax cuts aside, the iPhone couldn't stay the same "low price" it is now.
China can live without America, we cannot live without China. This plan would backfire, 'tremendously'
The more important thing that will happen is the corporate tax rate cut and incentives to bring their hundreds of billions in cash back to the U.S. without getting gouged 35%. No way in hell I would keep money in the U.S. at 35% when I can get a sweet heart deal elsewhere and keep more money. That's just bad business. Good move by dropping that rate and getting SOMETHING rather than nothing.
And that's the rub. For all the brouhaha against regulations and unions, many jobs were feasible because of improved labor conditions and wages. "Bringing back" these jobs means that we simply can't have the same costs of labor - that was the primary motivation and reason that the jobs had left the country in the first place because labor was so cheap. To keep that balance *and* to have the same costs to do the same work in the US is a non-starter, unless we really do abolish worker protections. But then all we end up with is wage slavery.
Doesn't Apple hardly pay any taxes anyway?
Free Maseratis and free college sound great too!
Oh, wait, I forgot. There is a difference between what we want and what is realistic.
Trump won. Not Hilary. Or did you miss that?
You see folks...I'm glad MR brought a rare delightful article.
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Looks like trump is gonna buy Apple out.MAGA - Make Apple Great Again?
International trade supposedly is bad because it is starting a race towards the bottom in regard to wages. But starting an (international) race toward the bottom in terms of tax rates is not bad?
You mean, and I don't say this lightly, Trump is, in someway, not always truthful?
Sure you can, at least in the manner described by this article. Small businesses are the leading provider of jobs in America. According to SBA statistics, small businesses provide 64% of new private-sector jobs. By providing a tax subsidy to a large corporation like apple ($600B market cap), the government would be taking money collected from the small businesses (income taxes) and giving it to a large corporation to create only a few new net jobs vs those that could be created by using those taxes to help the businesses actually driving domestic employment. It's sheer madness to give a $600B corporation tax advantages that are denied to the smaller businesses actually creating the most jobs.
And who is going to pay for those tax cuts I wonder?
He isn't just saying it now. He's trying to DO it. Hilary would had never even considered this. If trump gets apple to make an iPhone in the US that would be YUGE.
I can't wait to see this guy do a good job. I bet you'll all Still complain.
Trump obviously does not understand the first thing about how real business operates - especially the manufacturing of mass-market consumer high-tech like the iPhone.
He also does not understand the first thing about how either US, or international tax-law works. You cannot single out one company to receive a benefit such as incentives or a lower tax rate. And such an arrangement would clearly violate WTO law against such policies.
And for what? Why should the US taxpayer subsidize the production of tens of millions of iPhones that are shipped to China and Germany? The US already captures that vast majority of the "value" created in the iPhone. And Apple already creates tens of thousands of well-paying US jobs in conjunction with the iPhone.
Trump is an imbecile.
He also does not understand the first thing about how either US, or international tax-law works. You cannot single out one company to receive a benefit such as incentives or a lower tax rate. And such an arrangement would clearly violate WTO law against such policies.
And for what? Why should the US taxpayer subsidize the production of tens of millions of iPhones that are shipped to China and Germany? The US already captures that vast majority of the "value" created in the iPhone. And Apple already creates tens of thousands of well-paying US jobs in conjunction with the iPhone.
Trump is an imbecile.