This is the real Trump effect in action: after the GOP dominated Congress passed the POTUS’ tax reform bill, thus marking a major economic win for the country, AT&T announced one billion dollars investments plus bonuses to 200,000 of its employees, Boeing announced a three hundred million dollars investment initiative due to the same tax cut bill, Comcast announced a 50 billion investment, Fifth Third Bancorp issued bonuses to its employees and raised the minimum wage, and, last but not least, Apple’s CEO Tim Cook is now looking at repatriating 252 billion dollars in cash, monies that are currently parked overseas. Why? Well, because that has become affordable. Yes, it’s Trumpmas.
Here’s from 9to5Mac:
Apple would be able to take advantage of a one-time tax break, paying just 15.5% tax on the cash, rather than the 35% it would have had to pay previously.
If Apple chose to bring all of the cash back to the US, it would pay $39.1B in tax. And this would be practical because the company has already set aside $36.3B – almost the entire amount – for exactly that eventuality.
Remember how Barack Obama used to lecture us about elections and their consequences? Well, this is the real Trump effect. This marks a first for a long time now, maybe a first in 20 years when US companies will have to fight (as in compete) for workers, thus putting an end to he gig economy. From now on, the American worker will not have to work 2-3 part time jobs to make ends meet, no more backbreaking work with wildly scattered hours. And also, no more desperate people competing for the same crummy job. If you take all these into account, there’s no wonder the DEMs are hysterical, because their voting base is going to lean Republican sooner rather than later.
Public companies report to their shareholders, not to the public. So wise governments craft policies to help those companies win in their country. This is what the tax reform bill does. Just like in the 80’s, it took two tax bills to get it right. Let the tax bill start the flood of repatriation of assets to the US, and then use the success to tweak it later.