Apple to Contribute $350bn to the US Economy in Job Creation

[dalekphalm]

5 minutes ago, Eduard the weeb said:

 Yeah I agree 

It would be cool to see how this effect the economy 

I mean, it'll be good for American economy. As a side effect, it'll likely be good for North American economy in general.

 

What effect it'll ultimately have is yet to be determined.

[2FA]

Ironically even though most of that said money is listed as overseas accounts, the banks hold in in reserve mainly in NYC.

[mr moose]

2 hours ago, dalekphalm said:

What effect it'll ultimately have is yet to be determined.

 

I've already determined in absolute, indisputable  and concrete terms the effect to be money.  Mostly in specific pockets and occasional less in other pockets. but definitely money.

[dalekphalm]

3 minutes ago, mr moose said:

 

I've already determined in absolute, indisputable  and concrete terms the effect to be money.  Mostly in specific pockets and occasional less in other pockets. but definitely money.

How very astute

[PCBjon]

That's nice of them, bloody wish they payed their taxes in Ireland though 13 billion if I remember correctly.

[lobster_zoidberg]

On 18/01/2018 at 11:43 AM, Blake said:

Show me any example where an organisation that has had it's tax burden reduced, increased wages as a direct result? And not just the CFO/CEO.

Since the tax cuts about 100 business have increased employee wages. 

[shermantanker]

1 hour ago, PCBjon said:

That's nice of them, bloody wish they payed their taxes in Ireland though 13 billion if I remember correctly.

Didn't they have a deal with the Irish Government to not pay said taxes as a business incentive, or am I thinking of a different case?

[Nena Trinity]

So it will say "made in America" on the Apple products? Good news for those who do not buy Chinese now they have another option besides Samsung. But will prices remain the same? O3O

[PCBjon]

1 hour ago, shermantanker said:

Didn't they have a deal with the Irish Government to not pay said taxes as a business incentive, or am I thinking of a different case?

Yeah they made some wanky deal with them, But 13 billion is alot of tax to a small country. Been self employed myself im pretty much bent over and taxed up the ass it can be frustrating.

[PocketNerd]

16 minutes ago, PCBjon said:

Yeah they made some wanky deal with them, But 13 billion is alot of tax to a small country. Been self employed myself im pretty much bent over and taxed up the ass it can be frustrating.

Yup, we need everyone to pay their fair share so the honest don't get pillaged.

That said, glad to see Apple is choosing to do some investing in their employees and support businesses.

[suits]

On 1/17/2018 at 3:52 PM, dalekphalm said:

Yeah I really don't think that's as big a factor as you think.

 

Apple currently already makes OVER $50 Bn USD in profit per year (That's after expenses, including payroll)

Source:

http://www.businessinsider.com/apple-profit-by-year-2015-10

 

So, Apple doesn't need lower taxes in order to afford to hire more people or pay higher wages.

There is a big difference between need and want. Apple doesn’t need lower taxes. But every single CEO in the world would rather have their money where the taxes are the lowest. Had business taxes not been lowered this money would have stayed overseas. It just plain and simple. 

[Commodus]

15 hours ago, lobster_zoidberg said:

Since the tax cuts about 100 business have increased employee wages. 

Increased wages, or given bonuses?  I know some are wages, but in other cases I've heard only of one-time bonuses.

 

And more importantly, how many of those businesses have announced job cuts?  For example, Walmart did raise starting wages, but it also announced store closures that could impact as many as 11,000 workers.  So it can afford to raise wages in part because there are fewer people to pay.

 

That's what's frustrating -- there are so many people who don't realize that many of these announcements are distractions or political tools.  They're meant to keep your eye off of job cuts, or to fool you into thinking the tax plan made them possible (when they were really possible all along) and get your support for lower corporate taxes at your own expense.  Apple clearly isn't cutting jobs or relying on one-time bonuses, but it's the exception rather than the rule.

[dalekphalm]

8 hours ago, suits said:

There is a big difference between need and want. Apple doesn’t need lower taxes. But every single CEO in the world would rather have their money where the taxes are the lowest. Had business taxes not been lowered this money would have stayed overseas. It just plain and simple. 

You can't say that for certain. That's as much of a guess as any other possible outcome.

 

This deal could have been in the works for multiple years, and might have happened either way - it's not like Apple couldn't have afforded to do this even before the tax cuts. They had fat enough margins, and enough political incentive to at least entertain the idea, even with the older tax rates.

[mr moose]

23 hours ago, PCBjon said:

Yeah they made some wanky deal with them, But 13 billion is alot of tax to a small country. Been self employed myself im pretty much bent over and taxed up the ass it can be frustrating.

It was a very smart deal and you should be proud of the Irish government for doing it.  They were never going to get that 13B anyway as apple would have setup shop somewhere else, at least with this deal they got apple in their country which provided jobs and industry revenues/turnover.  

 

I've been self employed too, I ran my own business for the better part of the last 20 years, if my business employed as many as apples mere presence does then the government would likely try to strike a deal to get me there too,  alas, next to apple, I am not even a spec of dust on the contract paper.

[suits]

5 hours ago, dalekphalm said:

You can't say that for certain. That's as much of a guess as any other possible outcome.

 

This deal could have been in the works for multiple years, and might have happened either way - it's not like Apple couldn't have afforded to do this even before the tax cuts. They had fat enough margins, and enough political incentive to at least entertain the idea, even with the older tax rates.

But Apple isn’t the only one. Many companies have moved manufacturing back to the US, because we finally, like every other country in the world have made it more expensive to sell products in the US if they aren’t made in the US. That comes from high import taxes and lower business tax. It’s simple economics taught in every economics class I ever took. It’s easy to pay your taxes too because they’re probably taken out of your paycheck before you ever get it. But you’re not looking to pay taxes. Just like a company isn’t trying to spend more money on things that DO NOT make it more money in the long run. In the past it was smarter for Apple to have its money and invest it overseas. Now that it’ll cost them more money to have it overseas they finalize moving money back to the US. It’s not a coincidence it’s business. You make your money work for you. Right now in the law and economical landscape that’s investing in America when selling to Americans. 

[mr moose]

4 hours ago, suits said:

But Apple isn’t the only one. Many companies have moved manufacturing back to the US, because we finally, like every other country in the world have made it more expensive to sell products in the US if they aren’t made in the US. That comes from high import taxes and lower business tax. It’s simple economics taught in every economics class I ever took. It’s easy to pay your taxes too because they’re probably taken out of your paycheck before you ever get it. But you’re not looking to pay taxes. Just like a company isn’t trying to spend more money on things that DO NOT make it more money in the long run. In the past it was smarter for Apple to have its money and invest it overseas. Now that it’ll cost them more money to have it overseas they finalize moving money back to the US. It’s not a coincidence it’s business. You make your money work for you. Right now in the law and economical landscape that’s investing in America when selling to Americans. 

 

I agree with this, but What I think Dalekphalm is saying is that we can't just simplify it to one or two statements. Sure tax breaks might have had something to do with it, but we don't know for sure.  It may also have been a shift in consumer sentiment (I am seeing a lot of people on forums and youtube recently talking about how they prefer to buy USA made even if it costs a few dollars more.   Consumer trends like this can have a huge impact on sales and business structure.

[Blake]

On 1/20/2018 at 9:44 AM, lobster_zoidberg said:

Since the tax cuts about 100 business have increased employee wages. 

okay...

 

You're claiming 100 businesses, so name them.

Easy mode: include CPI increases.

Hard mode: no CPI increases.

Insane mode: must be greater then industry average/cpi increase.

[MrDynamicMan]

On 1/18/2018 at 2:43 AM, mr moose said:

 

Maybe they are learning from the whole gibson thing.

Gibson thing? What happened?

[mr moose]

7 hours ago, MrDynamicMan said:

Gibson thing? What happened?

Really not too confident to claim what went wrong, but they are in huge financial trouble and they are suffering a very big reputation problem with quality.  There have been many discussions and youtube videos regarding the low quality of their guitars over the last few years, issues with the US plant and sources of legal timber and people complaining of them using cheaper Chinese labor/parts.  

 

I don't see the whole thing as analogous but I certainly see components that apple could/should take note of, (especially in the "built in USA" and "quality" departments).  Because unlike building a phone, Building a guitar is not seen as merely factory work and Gibson were to guitars what apple is to phones.

[dalekphalm]

5 minutes ago, mr moose said:

Really not too confident to claim what went wrong, but they are in huge financial trouble and they are suffering a very big reputation problem with quality.  There have been many discussions and youtube videos regarding the low quality of their guitars over the last few years, issues with the US plant and sources of legal timber and people complaining of them using cheaper Chinese labor/parts.  

 

I don't see the whole thing as analogous but I certainly see components that apple could/should take note of, (especially in the "built in USA" and "quality" departments).  Because unlike building a phone, Building a guitar is not seen as merely factory work and Gibson were to guitars what apple is to phones.

Indeed with something like a Guitar, there's a certain amount of craftsmanship and artistic design in the construction. It goes beyond having a well staffed factory.