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Apple Says It Will 'Contribute' $350 Billion in the US Economy Over the Next 5 Years (cnbc.com)
Apple said on Wednesday it will invest $350 billion in the U.S. economy over the next five years, touting the creation of 20,000 new jobs and a new campus thanks, in part, to the prospect of tax reform. From a report: The company said it expects tax repatriation payments of about $38 billion, indicating that it will bring a portion of its $250 billion overseas cash back to the U.S. As of November, the company had $268.9 billion in cash, both domestically and overseas. The job creation will focus on direct employment, but also suppliers and its app business, which it had already planned to grow substantially. "We have a deep sense of responsibility to give back to our country and the people who help make our success possible," chief executive Tim Cook said in a statement.
...in a positive light?
In debates about Christianity, there are two groups: those looking for answers, and those looking to just ask questions.
They were able to do that due to tax laws duly voted into existence by Congress. Or, by the unintended consequences of tax laws duly voted into existence by Congress.
Means, they did nothing illegal. As most companies who did similar things did nothing illegal.
The new Tax laws lesson the incentive to keep cash overseas. Add to that the Bully Pulpit effect and you have cash coming home and being taxed, albeit at a lower rate than if it were raised here. But to you want 30% of nothing or 10% of something?
When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
Thursday morning, Walmart had a flashy announcement: Thanks to corporate tax cuts, it was giving its employees bonuses of up to $1,000. Walmart and President Trump pointed to the announcement as proof that the corporate tax cuts are really a boon to working-class Americans.
This announcement, as ThinkProgress reported earlier, was much more complicated than it first sounds.
Walmart employees are eligible for the $1,000 bonus only if theyâ(TM)ve worked at the company for 20 years. Most Walmart employees, of course, havenâ(TM)t worked there that long. Those employees will receive a smaller bonus based on seniority. Walmart didnâ(TM)t explain exactly how the sliding scale will work, but said the total value of the bonuses will be $400 million. Walmart has about 2.1 million employees, which works out to be an average bonus of about $190.
The one-time bonus Walmart announced this morning amounts to just over 2 percent of the total value of the tax cut to the company.
In fiscal year 2017, Walmart had pre-tax profits of about $20.5 billion and paid an effective federal tax rate of around 30 percent. With a new corporate tax rate of 21 percent, the corporate tax cut is worth at least $1.85 billion to Walmart every year. Since this cut is permanent, the true benefits to Walmart will grow much larger over time. But itâ(TM)s safe to say that, over 10 years, this corporate tax cut will be worth over $18 billion to Walmart.
But now it appears the announcement was timed carefully to cover for thousands of unannounced layoffs.
Business Insider reports that today, Walmart is abruptly closing numerous Samâ(TM)s Clubs stores across the United States. In some cases âoeemployees were not informed of the closures prior to showing up to work on Thursdayâ and âoelearned that their store would be closing when they found the storeâ(TM)s doors locked and a notice announcing the closure.â
citation provided
Who cares about "illegal"? This is Apple. They claim to be good global citizens. Meanwhile they are using slave labor to build their products and actively trying to avoid paying taxes. So they need to drop the whole SJW, good company act. Hypocrites.
There are a few factors.
First there is the multiply by 12 rule. Where every dollar spent, will be Multiplied by 12 benefit to the economy.
So that brings it down to 1.46 Million per person being spent. Then this is over 5 years so we get 292 thousand a year. Roughly 1/3 spent goes to benefits outside of ones salary, so that bring $194 Thousand per year on average per employee in raw salary. Which is still on the high side, and I bet Apple is calculating some other bogus numbers such as community starting businesses such as restaurants and stores to accommodate these people.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
I think you forgot overhead. Aside from salary and benefits, it costs money to give an employee a desk and chair to sit in, a phone, a computer, people to manage the IT infrastructure, administer HR and payroll, run the AC and get the place cleaned, pay mortgage/rent/property tax on the building, and so on. Typically that can be anywhere from 50% to over 100% on top of an employee's salary.
That said, I still agree that the numbers appear to be suspiciously high.
If it weren't for deadlines, nothing would be late.
Who cares about "illegal"? This is Apple. They claim to be good global citizens. Meanwhile they are using slave labor to build their products and actively trying to avoid paying taxes. So they need to drop the whole SJW, good company act. Hypocrites.
Slave labor? People aren't forced to work at FoxConn. Surely work conditions suck, but that doesn't mean people are held by chains without pay. They get paid, substantially more than what they would make back at the village, and many actually see it as a opportunity to climb up (which they do) as opposed to the many people we have here that do nothing to learn new skills and keep dreaming about having those level-pulling 9-5 jobs that are forever gone.
These workers are actually not the poorest from their village. Educationally they are the cream top from Rural China, and go there to climb up, not to escape rampant poverty.
I suggest you read "Factory Girls: From Village to City in a Changing China" by Leslie T. Chang. Obviously we want those workers to have better conditions (which they are getting, incrementally). And there is no doubt there is injustice in the system (in particular sexism.)
But to call the slave workers is just idiotic, and it simply demeans the very workers that chose to try their luck in the factory lines.
I think you overlook those who view Trump, the tax law, and Apple all as positive things. It's way more people than you might think...
Android and Apple devices are so widespread I don't think you can derive much political leanings from them.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
A large sum of money is going to be re-patriety now that the tax law makes more sense and is in line with other countries... Apple is going to be paying hundreds of millions of dollars in U.S. taxes bringing money back to the U.S.
Just where did you think this money was coming from anyway?
"There is more worth loving than we have strength to love." - Brian Jay Stanley
The first correction - "re-patrriety" (whatever the hell that is) should be "re-patriated".
Secondly, that re-patriation will cause Apple to pay a one-time payment of 38 BILLION dollars in taxes to the U.S. Is that enough to slate your dramatic thirst for Apple's cash?
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Initial unemployment claims are starting to tick up. Leading indicator.
Actually unemployment claims are at a 44 year low...
As you say - leading indicator.
I'm not upset. I'm actually rooting for a repeat of 2001 and 2008. Nothing nicer than buying a Trumpkin's home at auction
You mean the ones that bought stock after Trump got elected and are living the good life now? Yeah I guess they might be selling the house for a hefty profit and move into something larger, probably not at Christies though... not that you could afford anything a Trump supporter would deign to sell you.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Companies have been re-branding existing expansions as the result of Dear Leader since election day.
Why should I now believe this expansion happened because of Trump or the tax law? It's not like Apple was previously short of cash or didn't need to expand their workforce.
I stole this Sig
... upon his turban and predicts:
Swami Anderson knows all, tells all
Suppose you were an idiot and suppose you were a member of Congress
That is not how profitability works. If a project costs 1 billion but generates 11 billion revenue, now the company gets to keep 79% instead of 65%. If that project generated 1 billion in revenue they could still keep 0 profit. If a project generated only .8 billion, they will loose .2 billion....... The result is that ZERO new business opportunities are now profitable. You portray yet another myth of conservative "economics" which basically stem from zero understanding of the basic economic, accounting,capitalistic theories.
What mindless drivel. Corporations also use infrastructure and other things provided by the state so they have to pay for it.
-- Cheers!
Why not? We had the highest marginal rate, and one of the highest average and effective rates in the G20. Our biggest competitors - Germany, China, France, India - all enjoyed much lower marginal average, and effective corporate tax rates. Why shouldn't we be more in-line with our competition?
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
True, it's not slave labor, and I don't think we should necessarily complain that Apple gave Chinese people jobs. A human is a human afterall. What we should complain about is that Apple got away with paying their laborers pennies in the Chinese labor market while simultaneously raising the prices of their products in the US. In other words, they used cheap labor to drive their profits through the roof. On top of this, they used tax tricks to get out of paying their fair share back into the US economy.
If you really break down their strategy for what it is; they used Chinese laborers (and their weaker labor market) as a mechanism to generate a massive transfer of wealth from their many American customers (low/middle/upper classes) to the very few wealthiest individuals at the top. I have no problem with Chinese laborers; I have a problem with unethical companies like Apple who took advantage and with unethical government officials that passed the regulations for companies to take advantage of, that resulted in screwing their neighbors cumulatively out of a fortune.
A more balanced economical equation is to employ laborers that reflect the market so that higher employee pay results in more of the product sale proceeds to work its way back into the lower/middle classes. *OR* If a company uses foreign labor, their products sold in the US and profits made as a result should be taxed at a higher rate. That's fair.
"There are a few factors."
There's only one.
Trump allows them to pay only 8% taxes on the hundreds of billions they bunkered offshore and they'll distribute that as tax-free dividends to their shareholders.
The $1000 bonuses only go to workers with 20 years' service. Look it up -- MULTIPLE sources say the same thing.
OK, I looked it up. The retail giant said the pay raises would take effect Feb. 17 and the bonuses paid sometime after this month. It also plans to give one-time cash bonuses to some part-time and full-time workers, ranging from $200 (for workers who have been at Walmart for less than two years) to $1,000 (for those who have been working there for 20 or more years).
If a project costs 1 billion but generates 11 billion revenue, now the company gets to keep 79% instead of 65%
Yes that is correct, taxes are taxes on profits.
If that project generated 1 billion in revenue they could still keep 0 profit.
Yes that is also correct, etc.
The result is that ZERO new business opportunities are now profitable.
That's pretty speedy! Correct to utterly wrong in under a second.
Keeping more of profit they do earn means a company has more income to spend on R&D for new product. That is one way.
Furthermore you overlook that companies getting to keep more of the profit they earn, means that they can reduce margin to offer cheaper products while still making more overall than they were before. That in turn means that parts and materials may fall in price for other companies, like the one that was just breaking even, so suddenly that product that was making zero profit is now turning a small profit. HUH!
Then of course it follows that parts that were too expensive to make a product profitable before may now be reduced in price enough that new products can be made at a profit (or at least not much of a loss).
You portray yet another myth of conservative "economics"
I portray simply "economics", a subject you apparently know nothing about beyond some slim surface understanding, without even considering second-order effects.
I think though your more basic problem is not that you don't understand economics (or history for that matter), it's more a lack of imagination and planning. My guess is you've never actually run a business...
"There is more worth loving than we have strength to love." - Brian Jay Stanley
If the Fed does as expected and raises interest rates 3 times this year, you'll see a net outflow of capital from the stock market (and hello special dividends to keep investors holding share prices up a little longer) and into long term items like T-bills and higher rate commercial paper. Realistically the US economy needs this cash right now to help sop up all of the QE that was done post 2008 to create "artificial" liquidity in the market just as that fed created liquidity needs to disappear to restore a somewhat healthy balance.
Now if the Fed doesnt Fsck up and let the net-negative interest rates continue, we might have a chance to avoid a debt bomb from the 4 TRILLION in stimulus cash that currently doesn't get considered as part of the US debt/deficit.