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If they bring the money back then inevitably they'd spend it back into the US economy either through direct job creation or buying things. If they do create job

If they bring the money back then inevitably they'd spend it back into the US economy either through direct job creation or buying things. If they do create jobs, the US gets most of its money from income tax, which would increase from the more jobs/higher wages. It feels like double dipping if we expect them to pay taxes on repatriating the money and then also taxing the wages that the repatriated money allows them to pay.

sjg007 9y ago
Most likely they will buy back stock or issue dividends. They have to do what the majority of shareholders want with the money. If they don't they will be sued.
fjsolwmv 9y ago
Boy are you in for a shock when you find out the money that you spend, which you've paid income tax on it, goes to someone who pays income tax on it again!
IncRnd 9y ago
> It feels like double dipping if we expect them to pay taxes on repatriating the money and then also taxing the wages that the repatriated money allows them to pay. That is how our federal government constantly engages in double taxation. A corporation makes money + pays taxes, then pays employees who pay taxes. Those employees buy goods and services as well as have their own companies, all of which pay taxes on their incomes. After five layers of this double-dipping, an initial million dollars only has $327,000 left, with the other two thirds having been paid in taxes (at an average of only 20%). Many people pay far more than 20% in federal taxes. The federal government takes in taxes most of every dollar this way.
pg314 9y ago
> If they bring the money back then inevitably they'd spend it back into the US economy either through direct job creation or buying things. That is a misconception. It's not like they are storing dollar bills in warehouses on foreign soil. The bulk of the 'overseas' money is already invested, for a large part in the US. See page 49 in Apple's yearly report [1], to see how that money is currently invested: at the end of 2016 almost $42 billion dollars were invested in US treasuries, $131 billion in corporate securities. It doesn't say how much of those corporate securities are US companies, but it's probably the bulk. It's an accounting/tax fiction that it is currently 'overseas'. [1] http://investor.apple.com/secfiling.cfm?filingid=1628280-16-20309 http://investor.apple.com/secfiling.cfm?filingid=1628280-16-...

sjg007 9y ago

Most likely they will buy back stock or issue dividends. They have to do what the majority of shareholders want with the money. If they don't they will be sued.

fjsolwmv 9y ago

Boy are you in for a shock when you find out the money that you spend, which you've paid income tax on it, goes to someone who pays income tax on it again!

IncRnd 9y ago

> It feels like double dipping if we expect them to pay taxes on repatriating the money and then also taxing the wages that the repatriated money allows them to pay. That is how our federal government constantly engages in double taxation. A corporation makes money + pays taxes, then pays employees who pay taxes. Those employees buy goods and services as well as have their own companies, all of which pay taxes on their incomes. After five layers of this double-dipping, an initial million dollars only has $327,000 left, with the other two thirds having been paid in taxes (at an average of only 20%). Many people pay far more than 20% in federal taxes. The federal government takes in taxes most of every dollar this way.

pg314 9y ago

> If they bring the money back then inevitably they'd spend it back into the US economy either through direct job creation or buying things. That is a misconception. It's not like they are storing dollar bills in warehouses on foreign soil. The bulk of the 'overseas' money is already invested, for a large part in the US. See page 49 in Apple's yearly report [1], to see how that money is currently invested: at the end of 2016 almost $42 billion dollars were invested in US treasuries, $131 billion in corporate securities. It doesn't say how much of those corporate securities are US companies, but it's probably the bulk. It's an accounting/tax fiction that it is currently 'overseas'. [1] http://investor.apple.com/secfiling.cfm?filingid=1628280-16-20309 http://investor.apple.com/secfiling.cfm?filingid=1628280-16-...