ST Alpha - "Particularly when (not to pick on) Apple has something like 150 billion in cash just sitting around." (Reading a Post)

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Particularly when (not to pick on) Apple has something like 150 billion in cash just sitting around.

Posted by Reagen Nov 19 '14, 06:35

companies are perfectly fine with sitting on piles of cash if they don't have anything to invest in.

Responses:

(And that cash is probably not even here, is it.) -- nm - JaxSean Nov 19, 07:03 22
- No, it's overseas. They'll pay 35% in tax if they bring it back. -- nm - spamlet Nov 19, 07:23 21
  - [deleted] 20
    - why won't they? -- nm - groiny Nov 19, 07:38 19
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      - [deleted] 17
        
        It's not about effective tax rate, it's about marginal rate. - spamlet Nov 19, 08:01 16
        
        [deleted] 10
        
        There has been one repatriation holiday and companies did bring back a lot of money when the rate was 5% instead of 35%. -- nm - spamlet Nov 19, 08:11 9
        
        [deleted] 8
        
        Understood, but there was more tax revenue. That has value on its own. -- nm - pmb Nov 19, 08:17 5
        
        [deleted] 4
        
        I was mostly explaining yesterday, but as always I do care about fairness, but also practicality and effectiveness. - pmb Nov 19, 08:29 2
        
        [deleted] 1
        
        First, I understand that it's not 35% of nothing (but in many cases it is or is close). My point is that if we can effectively get more revenue for a - pmb Nov 19, 08:48
        
        a pragmatic " better than nothing ". -- nm - Reagen Nov 19, 08:27
        
        The argument in your IM was that companies would not bring money back when the rate was lowered. They did and would. -- (link) - spamlet Nov 19, 08:16 1
        
        [deleted]
        
        [deleted] 4
        
        But they would pay 50% (in your example) on bringing the cash back. That's the effective tax rate on bringing the money back. -- nm - spamlet Nov 19, 08:10 3
        
        [deleted] 2
        
        $50 in tax on $100 in income is a 50% rate. -- nm - spamlet Nov 19, 08:15 1
        
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We need an "idle assets" tax. -- nm - TWuG Nov 19, 06:59
Apple should spend some of that money on R&D instead of pumping out stale tech. -- nm - Shaun Nov 19, 06:40 2
- If they thought it would be more profitable than their current business model, they'd be doing it. -- nm - Roger More Nov 19, 06:43
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[deleted] 3
- the bigger mistake may be in assuming that people making this argument are arguing in good faith - Reagen Nov 19, 06:49 1
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- yeah, we know! :) -- nm - the choir Nov 19, 06:39

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Particularly when (not to pick on) Apple has something like 150 billion in cash just sitting around.

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