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Given that Trump's economic theory is essentially based on repatriated profits being reinvested into the US, he presumably wants to talk with the companies that
by candiodari 10y ago
Given that Trump's economic theory is essentially based on repatriated profits being reinvested into the US, he presumably wants to talk with the companies that have those offshore piles of cash, not so much with Tech executives. This seems to me to also be the more plausible reason that Twitter wasn't invited.
Amazon $9 billion offshore
Apple $230 billion held offshore
Oracle $52 billion
Microsoft $93 billion offshore cash
Google $73 billion
Intel $31 billion
Cisco $41 billion offshore
IBM $44 billion
...
The theory (that GS is pushing) is that this cash will be used for large scale share repurchases, and I assume that given Trump's appointments he agrees. 2017 should be a year where the effects of 2016 reinforced: narrower and narrower stock market gains, limited to huge companies.
- dharma1 10y agoI think there is a good chance of exactly this - cash repatriation in exchange for lower taxation on it, then using that tax revenue for partly funding the infrastructure projects that he's promised to create jobs. But share repurchases is a lame way to spend the money - though I'm sure the people who get to choose will favour it because it boosts their compensation directly. Trump should ask for (at least some of it) to be used on more productive things like R&D, hiring, and VC deals on long term investments that are currently underfunded.