- Apple could add $47billion in profits from the new Republican tax plan pushing through Congress that prompts for a 25 per cent corporate tax rate
- Microsoft keeps $132 billion abroad while Apple has a whopping $252billion
- Current tax laws permit Apple to pay $78.1billion to bring profits back to the United States under the Senate plan but the new would make cost $31.4billion
- Richard Harvey, a tax professor at Villanova University, shared with the Financial Times that Apple would only have to pay $31.4billion under the new tax laws
Apple is expected to come out ahead of the new Republican tax plan pushing through Congress.
The Cupertino, California, firm could add $47billion in profits from tax legislation, as reported by the Financial Times.
The current percent tax rate is 35 per cent but under the proposed 25 per cent corporate tax rate put forth by the Senate, Apple would be able to gather profits from overseas at a maximum 14.5 percent.
Apple could add $47billion in profits from the new Republican tax plan pushing through Congress that prompts for a 25 per cent corporate tax rate
Apple will gain the most from the legislation, but it will not be the only company to benefit.
Microsoft keeps $132 billion abroad while Apple has a whopping $252billion.
Current tax laws permit Apple to pay $78.1billion to bring profits back to the United States under the Senate plan.
Richard Harvey, a tax professor at Villanova University, shared with the Financial Times that Apple would only have to pay $31.4billion under the new tax laws.
Richard Harvey, a tax professor at Villanova University, shared with the Financial Times that Apple would only have to pay $31.4billion under the new tax laws
The potential $47billion savings would be more than any other United States corporation makes in profit on a yearly basis.
The company has indicated that it would return just half of its profits from abroad. That money would likely be passed to shareholders in the form of dividends and buybacks in stock
‘Overall, companies like Apple will be happy with it. They are a getting a territorial system and a lower rate. It’s a good deal,’ Harvey added.
US stock markets have rallied for months at the prospect of a corporation tax cut as the bill reduces the rate from 35 to 20 per cent.
The bill focuses its tax reductions on businesses and higher-earning individuals, gives more modest breaks to others and offers the boldest rewrite of the nation’s tax system since 1986.
Republicans touted the package as one that would benefit people of all incomes and ignite the economy. Even an official projection of a $1 trillion, 10-year flood of deeper budget deficits couldn’t dissuade GOP senators from rallying behind the bill.