The tech giant’s stockpile of cash has swelled to a record $256.8 billion, but 90% of that is overseas to avoid paying taxes.
Apple’s stockpile of cash has grown to a record $256.8 billion in the second quarter of 2017, but as CNBC is reporting, the tech giant is storing “most of its cash outside the U.S. for tax reasons.”
The Wall Street Journal estimates that, of Apple’s $256.8 billion, 90 percent of it is being sheltered overseas, and according to The Washington Post, Apple’s cash pile is as big as the GDP of Finland and Jamaica combined.
However, some of that money could be making its way back to the United States if President Trump has his way.
According to the Wall Street Journal, “President Donald Trump has proposed slashing business taxes and granting a one-time tax holiday on corporate cash brought home. Those policies could ratchet up pressure on the tech giant to dole out more money to shareholders or make splashy acquisitions.”
If Apple was able to bring its cash back, the company has such an astounding level of liquidity that it could purchase both Tesla and Netflix and have a considerable amount of cash left in their war chest.
According to The Washington Post’s analyisis:
“With the $250 billion sitting in its bank account, Apple could comfortably go out and buy Chevron, the second-largest U.S. oil company, at today’s market price without borrowing a penny. The technology giant would still have $50 billion left to buy more than 700,000 Tesla model S electric cars or about four Gerald R. Ford class aircraft carriers.”
Instead, by housing their cash overseas, Apple has cost the U.S. an estimated $74 billion in taxes that would have been collected between the years of 2009 to 2012.
The New York Times reported in 2013 that “overall, Apple’s tax avoidance efforts shifted at least $74 billion from the reach of the Internal Revenue Service between 2009 and 2012,”
What’s worse is that Apple is using its stockpile of cash to invest in research and development centers in China, but not in the U.S., meaning Apple’s overseas money is hurting both the federal government and the American workforce.
8.16.17 12:14 pmWho Is Hope Hicks? Meet the Woman Named Interim WH Comms Director
How a 28-year-old from Greenwich, Connecticut rose to power inside President Trump’s inner circle to become one of Trump’s most trusted staffers.
8.15.17 10:03 amGOP Group Announces $500k Spend on Digital Ads for Tax Reform
The American Action Network plans on spending around $20 million on tax reform by Thanksgiving.
8.10.17 10:01 amA ‘Fundraising Crisis’ is Crippling the Democratic Party
Over the first six months of 2017, the RNC raised $75 million while Democrats pulled in just $38 million.
8.8.17 4:43 pmHere’s What Would Happen if North Korea Hit A U.S. City With a Nuke
According to reports, Pyongyang has developed the capability to hit the United States with nuclear weapons.