Having reported the third highest quarterly profit
in its history, Apple’s giant cash pile isn’t getting any smaller. The world’s most profitable company now sits on $246 billion in cash, cash equivalents and marketable securities, most of which is held by its foreign subsidiaries. Much to the displeasure of President Trump, who would like to see that money invested domestically.
However, bringing its overseas cash back to the United States would currently require Apple
to pay the corporate tax rate
of 35% plus state taxes, which would amount to more than $80 billion – a rate that Tim Cook, as he repeatedly stated
, doesn’t consider fair. Luckily for him, the new president doesn’t either.
During his campaign, Trump suggested
lowering the tax rate for repatriated cash to 10 percent in order to convince U.S. companies to bring back their money from overseas. During yesterday’s earnings call, Cook expressed his confidence in seeing a tax reform this year. "I am optimistic, given what I’m hearing, that there would likely be some sort of tax reform this year”, Cook said, "and it does seem like there are people in both parties that would favor repatriation as a part of that, so I think that’s very good for the country and good for Apple."