Under Trump, US jobs are moving overseas even faster than before

That is disingenuous to leave out the next sentences being "But it's not clear how much those numbers represented an increase from Apple’s previous plans, or how much of it will be funded by the repatriated cash."

 

Once again you fail to see the big picture. Every time tax cuts have been tried they worked. I gave you a graph that covered this phenomenon over fifty years. Look again.

 

Once again you fail to see the big picture. Every time tax cuts have been tried they worked. I gave you a graph that covered this phenomenon over fifty years. Look again.

 

Those plans were going to happen anyway. They are accelerating it in the USA.
What the tax cut did was sway, perhaps, where and when this would all happen. But it was going to happen anyway.

So, it's not creating new jobs. The demand was there before.
Without demand for growing products and revenue, there isn't demand for more workers.

I see your point, but my point is those job creations were already in the works. It's not a direct result of tax decrease.

 

The next sentence is editorializing not facts and I was responding to someone who said the fact that apple had cash didn't mean they would spend it. They most certainly are.

 

Without the tax cut apple wouldn't have the funds they now do to expand ,build and hire. This is exactly what corporate tax cuts are meant to encourage.

 

Here is Apple's statement:

Cupertino, California — Apple today announced a new set of investments to build on its commitment to support the American economy and its workforce, concentrated in three areas where Apple has had the greatest impact on job creation: direct employment by Apple, spending and investment with Apple’s domestic suppliers and manufacturers, and fueling the fast-growing app economy which Apple created with iPhone and the App Store. Apple is already responsible for creating and supporting over 2 million jobs across the United States and expects to generate even more jobs as a result of the initiatives being announced today.
https://www.apple.com/newsroom/2018/01/apple-accelerates-us-investment-and-job-creation/

 

Sure they would. They may have more now than before, which is why they are accelerating the growth plan.
This didn't just happen in the last few weeks.

 

Yes they have more money to invest in America. That's the idea here.

 

I said no company will add jobs, just because they have cash or got more cash sitting around. As your tax cut claim says will happen. Comprehension sir, comprehension.

There has to be a demand of growing products and services to add jobs. Not just more cash.

 

But the tax cut alone, is not the reason for the expansion. As you're trying to portray.
It's why I said I don't disagree, entirely, with your claim.
But what you are implying is this tax cut is the reason for this expansion. And that is false.
Read the link I provided, it is Apple's announcement.
I didn't see anything in the link about tax cut being the reason for more jobs.

 

Sure they would and did. They can now accelerate it, because of this short term windfall and repatriate money.

 

You mean look at the graph that shows the revenue increasing all the time from 1960 to 2000 and dropped in the years when the corporation tax rate was at its lowest? (2000 to 2004 and 2007 to 2009)

 

But in this instance we are speaking of apple was allowed to keep cash in an era of demand so tax cuts worked.

 

As in the graph that shows every time taxes were lowered tax revenues went up as per JFK, Reagan and now Trump. When taxes are cut the economy grows, when the economy grows tax revenues go up. I don't think you'd argue that a recession decreases tax revenues would you or would you? Obviously the better the economy is the more tax revenue you get and since lowering taxes stimulates economic growth ....... Obviously there would be a point of diminishing returns if taxes were too low so I wonder if that's what you are arguing. Are taxes too low now?

 

Again, you're reiterating what I've already said (i.e. mandatory tax payment).

And again, Cook can keep the remainder of the cash overseas.

Further, there is no reason to believe that Apple will repatriate the remainder, let alone use it to invest.

Nor is there any evidence that Apple's plans are new plans, prompted by tax reform.

Rather the reverse.

As your own posted article states: "it's not clear how much those numbers represented an increase from Apple’s previous plans, or how much of it will be funded by the repatriated cash."

Indeed, the bulk of Apple's "contribution to the economy" is accounted for a continuation of it's current expenditures in the US, totaling $275 billion, while other elements of that "contribution", including data centers and Reno facility, were announced month's ago, at least.

What's more, Apple funds it's new US operations through loans, not overseas cash. Why? Because as Tom Cook himself explains, interest on those loans is peanuts compared to repatriation tax.

Besides, you forget that Apple is a global concern, investing heavily in countries all over the world, China included. Not to mention that it is the most profitable company, ever, in the entire world.

Frankly, it is naive to believe that it has been hampered somehow by US tax rates on overseas cash.

It has more than it needs to do exactly what it wants, whenever, wherever.

 

dairyair is right, tax cuts do not dictate behavior. these current tax cuts, while apple may be doing it due to tax cuts, there are thousands more that will just keep it or buy back stocks.

 

Once again what you put in bold is editorializing not factual reporting.

From the horses mouth:


"Apple CEO Tim Cook told ABC on Wednesday that Apple will now be "paying $38 billion that we would not have paid" under the old tax system, but will be paying less over time, which is "one reason why we can... invest over $350 billion in the United States."

Why it matters: Axios' Ina Fried reported that Apple plans to open its second corporate campus in the U.S. in its plan to add $350 billion to the U.S. economy over the next five years. It also plans to create an additional 20,000 jobs in the United States. Trump reportedly called Cook and thanked him."

https://www.axios.com/tim-cook-the-tax-plan-is-1516307596-0dfa1de4-c2d8-46a0-bff9-4d5052115887.html

 

Tax cuts don't dictate behavior they allow it. Allowing corporations to invest and grow is the goal and as you see in apples case the result.

 

I have already explained that the $350 billion spend is accounted for by:
(a) a continuation of current spending and
(b) investments that were already planned, months ago.

And, which you conveniently ignored, that Apple's spending in the US is funded by borrowing in the US.

You, on the other hand, have yet to show
(a) where Cook explicitly states that he is bringing the rest of the cash back to the US
or
(b) why the richest company in the world, investing worldwide, would want or need to do so.

 

I gave you a direct quote from cook stating how the tax cut enabled him to do what he's doing in America. Don't know what more you want.

 

I did not claim, nor admit that Reagan tax cuts led to increased tax revenue. Not that I deny that this happened but it certainly was not the sole factor.

The massive increase in the deficit probably contributed most to the increased tax revenue.
Then there was the fact that economic activity increased (in particular consumer spending which is the largest part of the economy) due to the baby boomers coming into their high spending years.

Perhaps there was a slight contribution from his corp tax cuts but this would be very little in comparison to the other two factors.

Reagan was a fiscal disaster.

 

When I see qz.com as being used as a source, you have to be really careful when reading the "Quartz."
Not calling it fake news but requires more research.

 

I love how the left does everything possible to keep JFK and his tax cut that Reagan used as a model out of the conversation. I put a good graph up earlier showing how tax rates and tax revenue rose and fell opposite of each other over the last fifty years. That pretty much says it all. Lower taxes increase economic growth which leads to higher tax revenues. It's a time proven concept.

 

In the full quote, he explicitly states that they are "ongoing investments".

Clearly, as in fact they were planned months and months ago, at least.

Nothing to do with the tax cuts. Business as usual.

Any implication that they are to do with the tax cuts is editorializing. That would include any implication out of the "horse's mouth".

Ask yourself:

(a) if they were dependent on tax cuts, why were they already underway, months ago?

(b) Where does he say he's bringing the cash back? And if he doesn't (which he doesn't) why not, if he needs it so much?