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In good times, people complain about companies like Apple "hoarding cash". Now, people complain about companies redistributing profits to their shareholders--ma

In good times, people complain about companies like Apple "hoarding cash". Now, people complain about companies redistributing profits to their shareholders--many of which are ordinary people holding shares in their 401(k)'s or otherwise. They really cannot win.

treyfitty 7y ago
Apples cash hoard was all sitting overseas because it couldn’t be repatriated, no? That’s kind of a different scenario... they didn’t really choose to hold cash. They just didn’t want to pay the tax to bring it to the states.
- jdminhbg 7y ago
  But once the corporate tax rate was brought back in line with the rest of the developed world, Apple brought the money back to fund buybacks and dividends. When you have more cash than available attention, that's the right thing to do: return it to shareholders.
- ryeights 7y ago
  >they didn’t really choose to hold cash. I'm not sure what you mean by this, but if companies are going to hold large amounts of cash, it would be fiscally irresponsible not to seek the best possible tax treatment for it within the law. If people think it's inappropriate for companies to hold cash overseas, those concerns should be addressed towards lawmakers.
  - adjkant 7y ago
    When the companies are the main lobbyists of corporate tax law, they effectively become judge/jury/executioner. You can say "Boycott Apple" but that's not really viable either for an injustice that is not seen by most as severe enough to give up something so centrally important to them. That importance should not give Apple a free pass to do any minor things they care to though, regardless of morality. These are not easy problems and for companies to throw their hands up to "well the law says X", especially as they lobby for X to stay, then IMO falls back morally on the company.
    - ryeights 7y ago
      Good point.
dmazin 7y ago
Speaking for myself, when I say that I wish companies spent more of their warchests, I mean investment, not buybacks.
- ryeights 7y ago
  Then you have an Amazon scenario, where people complain that companies pay low or no taxes because they are reinvesting their revenue.

treyfitty 7y ago

Apples cash hoard was all sitting overseas because it couldn’t be repatriated, no? That’s kind of a different scenario... they didn’t really choose to hold cash. They just didn’t want to pay the tax to bring it to the states.

jdminhbg 7y ago
But once the corporate tax rate was brought back in line with the rest of the developed world, Apple brought the money back to fund buybacks and dividends. When you have more cash than available attention, that's the right thing to do: return it to shareholders.
ryeights 7y ago
>they didn’t really choose to hold cash. I'm not sure what you mean by this, but if companies are going to hold large amounts of cash, it would be fiscally irresponsible not to seek the best possible tax treatment for it within the law. If people think it's inappropriate for companies to hold cash overseas, those concerns should be addressed towards lawmakers.
- adjkant 7y ago
  When the companies are the main lobbyists of corporate tax law, they effectively become judge/jury/executioner. You can say "Boycott Apple" but that's not really viable either for an injustice that is not seen by most as severe enough to give up something so centrally important to them. That importance should not give Apple a free pass to do any minor things they care to though, regardless of morality. These are not easy problems and for companies to throw their hands up to "well the law says X", especially as they lobby for X to stay, then IMO falls back morally on the company.
  - ryeights 7y ago
    Good point.

dmazin 7y ago

Speaking for myself, when I say that I wish companies spent more of their warchests, I mean investment, not buybacks.

ryeights 7y ago
Then you have an Amazon scenario, where people complain that companies pay low or no taxes because they are reinvesting their revenue.