1. Akshay Masand's Avatar

    US Senators Barbara Boxer and Rand Paul recently announced the “Invest in Transportation Act of 2015,” a proposal which allows companies such as Apple to bring foreign cash reserves back to the US at a much lower tax rate while using the proceeds to help replenish the Highway Trust Fund. The bill which hasn’t been introduced just yet would lower the tax rate for repatriated foreign earnings from 35% to 6.5%. Any company who wishes to make the move would be given five years to do so. Only transfers which exceed the company’s annual average repatriation would be eligible for the reduced rate.

    Along with boosting federal infrastructure spending, the bill would contain provisions which are designed to force companies bringing cash back to use that money for hiring, increasing wages or pensions, improving environmental standards, public-private partnerships, capital improvements and/or acquisitions. The funds would not be eligible for use in executive compensation, shareholder dividends or stock buybacks for three years after the repatriation scheme ends.

    Senator Boxer told The Hill the following regarding the matter:

    The bipartisan repatriation proposal is a win-win for our economy and our country. First, it will bring back hundreds of billions of dollars in foreign earnings that are sitting offshore, which can be invested here in America to create jobs. Second, the taxes paid on those earnings will be used to extend the Highway Trust Fund, which supports millions of jobs nationwide. I hope this proposal will jumpstart negotiations on addressing the shortfall in the Highway Trust Fund, which is already creating uncertainty that is bad for businesses, bad for workers and bad for the economy.
    Apple recently ended its first fiscal quarter of 2015 with $179 billion in cash – a number was increased by $24 billion from the previous quarter. The Cupertino California company didn’t provide a breakdown of the money it held overseas but its foreign cash reserves previously reached $140 million last summer.

    For those of you who didn’t know, Apple has already lobbied quite hard for corporate tax reform in the recent years. The repatriation taxes were a central tenet of that push as Apple was already one of the largest taxpayers in America. The Cupertino California company has been urging lawmakers to take a look at proposals that lower the cost of capital returns while remaining revenue neutral. This eliminates corporate tax expenditures and lowers corporate income taxes overall.

    It should be noted that this isn’t the first time such a tax break has been proposed in order to benefit infrastructure spending. A program very similar to this one made its debut last June but didn’t end up being successful. We’ll have to wait and see what happens this time around.

    Source: Senator Boxer, The Hill via AppleInsider

    Twitter: @AkshayMasand
    2015-01-31 09:06 AM
  2. exNavy's Avatar
    The rich don't need tax breaks because us poor certainly don't receive them.
    2015-01-31 05:32 PM
  3. Ambi_Valence's Avatar
    The rich don't need tax breaks because us poor certainly don't receive them.
    That was my first thought too.
    2015-01-31 08:44 PM
  4. FreshOutTheWash's Avatar
    The rich don't need tax breaks because us poor certainly don't receive them.
    It is really unfortunate that you accept that you are poor. So you would like to receive preferential treatment because you lack the drive to improve yourself, maybe get a better education, learn a skill that is useful to get a well paying job? If you actually read/attempted to read the article you would see that the current tax to bring profit that a company earned internationally into a US bank is 35%.... And this would reduce that to 6.5% if they increased what they already repatriated previously and agreed to spend it here and not put it towards paying your "rich" people for the first few years..

    So i guess you are the problem with our current economy. You would like handouts and everything paid and free like our failing roads and bridges and healthcare. But you wont try to improve yourself and don't have the intellect or common sense to see something that actually does help people like you that like to think its someone else that has the responsibility and need to pay for some else's food and the toilet paper they wipe with. If you want better jobs then company's need to bring money that came from the US back into the US instead of spending and keeping it in foreign countries banks (that are happy to have it) instead of us receiving it, and at least some benefit from it. Why should a company have to pay 35% of there foreign profit to bring there money back so they can expand and make more jobs and pump money back into our dead economy.

    Our society is screwed now because the current society believes its okay to accept failure and mediocrity. We need to go back 50 years to when people had self respect and strove to improve themselves. Now we are lazy and uneducated believing whatever is convenient and absolutely anything that the media says without a doubt if its true or false.

    I know it really doesn't matter what i even say cause i will be paying for your handouts for life anyways. And fyi your not poor if you can afford to buy an iPhone. Thats kind of a contradiction... Its your choices that make you broke. Spend your money wiser and get an education so that you can get a job that pays above minimum wage and then you just might have all the extra nice things in life and know what it feels like to receive that big paycheck and know you earned it. Buy a house. Not always have to barrow from a bank the owe your soul to banks all life long. Im 24 and already have a house and paid 3/4 off in 2 years. What excuse do you have? And I'm not trying to be that big of a **** but more people need to be or all you will hear is people like you making false, incorrect, statements. I guess i will give the high-horse a rest now.
    2015-01-31 09:32 PM
  5. FreshOutTheWash's Avatar
    And i hope your second thought was better. Well if you were able to pull more thoughts from that....
    2015-01-31 09:33 PM
  6. rockyseay's Avatar
    Right, allow corporations to use all the benefits that provided by the U.S, but don't make them pay their fair share of taxes. No way in hell should a corporation be paying taxes lower than the average person. Hell I know I pay way more taxes than that.
    2015-02-01 03:48 AM
  7. Ambi_Valence's Avatar
    Your earlier novel was the most boring work of fiction I’ve read for quote some time.

    Yes fresh, that’s directed at you.
    2015-02-01 04:15 AM