By Tripp Mickle • Wall Street Journal
Apple Inc. AAPL 1.65% said it would pay a one-time tax of $38 billion on its overseas cash holdings and ramp up spending in the U.S., as it seeks to emphasize its contributions to the American economy after years of taking criticism for outsourcing manufacturing to China.
The world’s most valuable publicly traded company laid out its plans Wednesday in a statement that was full of big-dollar figures, though it said that much of the money reflected Apple’s current pace of spending.
Apple said it would invest $30 billion in capital spending in the U.S. over five years that would create more than 20,000 jobs. The total includes a new campus, which initially will house technical support for customers, and $10 billion toward data centers across the country. It also will expand from $1 billion to $5 billion a fund it established last year for investing in advanced manufacturing in the U.S.
All told, Apple said it would directly contribute $350 billion to the U.S. economy over the next five years, with the bulk—about $55 billion this year, for example—coming from ongoing spending on parts and services from U.S. suppliers. That number also includes the federal tax payment and capital spending.
by David French • National Review
I’m starting to think that all too many Democrats believe that private citizens and private corporations don’t actually own their private income or their private property.
Otherwise, how can we explain the Democratic insistence, repeated endlessly over the last 24 hours, that Republicans somehow are poised to execute a grand “heist” by cutting corporate and individual tax rates, granting an estimated 80.4 percent of taxpayers an average tax break of $2,140.
The rhetoric was remarkable, and the hysterics weren’t confined to fringe figures on the left.
Here’s House Democratic leader Nancy Pelosi:
“Shamefully, Republicans were cheering against the children as they rob from their future and ransack the middle class to reward the rich #GOPTaxScam”
— Nancy Pelosi (@NancyPelosi) December 19, 2017
By Heather Wilhelm • National Review
Ah, the holiday season. It’s a magical time, bursting with joy and merriment, the laughter of children, jolly parties, twinkling lights, mildly terrifying mall-dwelling Santas . . . and the faint sounds of caterwauling blue-state politicians shrieking that the GOP tax bill signals the end of civilization as we know it.
Can you hear it? Fire and brimstone! The weeping and gnashing of teeth! According to Nancy Pelosi, this reshuffling of government regulations amounts to “Armageddon” and “the worst bill in the history of the United States Congress.” California governor Jerry Brown labeled the tax bill “evil in the extreme.” According to Bernie Sanders, the proposal amounts to “class warfare” and “one of the greatest robberies in American history.” In terms of sheer melancholy drama, comedian Patton Oswalt might win the prize: Because of the GOP tax bill, “there’s no America now. Not the one we knew. Sorry, feeling real despair this morning.” Continue reading
by Lawrence Kudlow, Stephen Moore, Arthur B Laffer, and Steve Forbes • Investor’s Business Daily
President Trump and Republican leaders in Congress must act with much more urgency and decisiveness on tax cuts.
In recent weeks the tax cut agenda seems stalled out and the delays and indecision are negatively affecting growth and the stock market. We hear that a tax plan from the White House may not come until the fall and may not even pass Congress until 2018 – if at all.
Is it any wonder that investors are getting jittery? The stock market had priced in much of the anticipated benefits to business, wages and profits, which accounts in no small part for the $3 trillion rise in equity values and the surge in business and consumer confidence after the election. Now the confidence is waning. Continue reading
IRS tax code totals 2.4 million words and additional regulations total 7.7 million words
by Ali Meyer • Washington Free Beacon
“One often overlooked issue in tax reform is complexity,” the report states. “For decades, the tax code has become more and more detailed, with thousands of additional pages of statutes, regulations, and case law. This added complexity imposes a real cost on the U.S. economy.”
The Internal Revenue Service (IRS) tax code in 1995 totaled 409,000 words and since then it has increased to a total of 2.4 million words.
In addition to the tax code, there are 7.7 million words of tax regulations and there are 60,000 pages of tax-related case law, which accountants and tax lawyers use to decide how much their clients must pay. Continue reading
$2,883,250,000,000: Federal Taxes Set Record Through August; $19,346 Per Worker; Feds Still Run $530B Deficit
By Terence P. Jeffrey • Investor’s Business Daily
The federal government raked in a record of approximately $2,883,250,000,000 in tax revenues through the first eleven months of fiscal 2015 (Oct. 1, 2014 through the end of August), according to the Monthly Treasury Statement released Friday.
That equaled approximately $19,346 for every person in the country who had either a full-time or part-time job in August.
It is also up about $198,425,330,000 in constant 2015 dollars from the $2,684,824,670,000 in revenue (in inflation-adjusted 2015 dollars) that the Treasury raked in during the first eleven months of fiscal 2014. Continue reading
by Stephen Moore • The Washington Post
It was 40 years ago this month that two of President Gerald Ford’s top White House advisers, Dick Cheney and Don Rumsfeld, gathered for a steak dinner at the Two Continents restaurant in Washington with Wall Street Journal editorial writer Jude Wanniski and Arthur Laffer, former chief economist at the Office of Management and Budget. The United States was in the grip of a gut-wrenching recession, and Laffer lectured to his dinner companions that the federal government’s 70 percent marginal tax rates were an economic toll booth slowing growth to a crawl.
To punctuate his point, he grabbed a pen and a cloth cocktail napkin and drew a chart showing that when tax rates get too high, they penalize work and investment and can actually lead to revenue losses for the government. Four years later, that napkin became immortalized as “the Laffer Curve” in an article Wanniski wrote for the Public Interest magazine. (Wanniski would later grouse only half-jokingly that he should have called it the Wanniski Curve.) Continue reading
Rather than trying to ban the practice, why can’t Obama address corporate tax reform?
by Charles Krauthammer • National Review
The Obama administration is highly exercised about “inversion,” the practice by which an American corporation acquires a foreign company and moves its headquarters out of the U.S. to benefit from lower tax rates abroad.
Not fair, says Barack Obama. It’s taking advantage of an “unpatriotic tax loophole” that hardworking American families have to make up for by the sweat of their brow. His treasury secretary calls such behavior a violation of “economic patriotism.”
Nice touch. Democrats used to wax indignant about having one’s patriotism questioned. Now they throw around the charge with abandon, tossing it at corporations that refuse to do the economically patriotic thing of paying the highest corporate tax rate in the industrialized world. Continue reading
President Barack Obama says it’s “not fair” and “not right” for U.S. companies to set up overseas to avoid taxes. Except when it benefits him politically.
The president calls these companies “corporate deserters.” He says they are “still using all the services and all the benefits of effectively being a U.S. corporation,” but have “just decided” to go through the “paper exercise” of corporate inversion, in which U.S. companies with foreign subsidiaries can reduce their tax bill by becoming foreign companies with U.S. subsidiaries.
“I think it’s something that would really bother the average American,” he said recently, “the idea that somebody renounces their citizenship but continues to entirely benefit from operating in the United States of America just to avoid paying a whole bunch of taxes.”
Many companies are planning to flee the country because the United States of America has the highest corporate tax rate — 35 percent — in the developed world. It simply makes sense for them to do so. They are obligated to shareholders to be as competitive and profitable as possible. Continue reading
Federal tax revenues continue to run at a record pace in fiscal 2014, as the federal government’s total receipts for the fiscal year closed April at $1,735,030,000,000, according to the Monthly Treasury Statement.
Despite this record revenue, the federal government still ran a deficit of $306.411 billion in the first seven months of the fiscal year, which began on Oct. 1, 2013 and will end on Sept. 30, 2014.
In the month of April itself, which usually sees the peak tax revenues for the year, the federal government ran a surplus of $106.853 billion. While taking in $414.237 billion in total receipts during the month, the government spent $307.383 billion.
In fiscal 2013, the federal government also ran a one-month surplus in April, taking in $406.723 billion during the month and spending $293.834 billion, leaving a surplus of $112.889 billion. Continue reading
Our corporate tax rates are far too high. The rate kills investment and job creation and it makes us less competitive with other nations who have had the good sense to lower their tax rates. Germany has cut its rates almost in half in the last 25 years. Socialist Sweden has cut its by more than one half. And Ireland has cut its rates by almost 75%. We, on the other hand, have raised our corporate tax rates over that time period — leaving us with the highest rates in the industrialized world.
It is no coincidence that our unemployment rate is historically high and our labor participation rate is historically low. It is also no coincidence that our economic growth rate is painfully slow and far too low.
We realize that there will not be any meaningful tax reform or lowering of the tax rates this year. But the idea that the Senate Finance Committee might consider extending some legitimate tax deductions for manufacturing that actually make profits and employ people, but killing others means that the Senate plans to raise taxes on some american corporations at a time when the economy is weak, employment numbers are bad and taxes are already too high. This is bad policy! Continue reading
The article below discusses the push in Illinois to raise the minimum wage to $10 and hour. While we cannot endorse each point made in the article, it does a good job of describing the absurdity of solving current job growth and economic growth problems by focusing on the minimum wage. In North Dakota where there is an economic and energy boom, there is rapid economic growth and full employment. Kids working at McDonalds can earn up to $15 an hour. This was done not be raising the minimum wage, but instead, by the free-market creating jobs and thus, driving wages higher through natural natural means. The article makes some excellent points. Enjoy!
Beyond the minimum wage
Gov. Pat Quinn wants to raise the minimum wage in Illinois to at least $10 an hour. Some of the Republican challengers to Quinn have danced clumsily around the issue. Our concern is that this narrow focus on a small shift in wages for a small number of workers misses the real point of debate.
Illinois is desperate for jobs of all kinds. This state has the fourth highest unemployment rate in the nation and, according to a recent, credible survey, the worst prospects for job growth. Unemployment is significantly higher than the state average in communities such as Rockford, Kankakee, Decatur and Danville. It is desperately high in some of Chicago’s poorest neighborhoods. Continue reading
I am here today because I believe the public policy status quo in Washington – and in particular, within the Republican Party – must once again be challenged and transformed. The focus of my remarks will be the new tax reform proposal I will soon be introducing in the Senate.
But before I get into the specifics of the legislation, I think it’s important to explain the problem it has been designed to solve.
On this Constitution Day, allow me to begin with thoughts from perhaps the two most important constitutionalists in American history. The first, from James Madison, is that the “object of government,” is “the happiness of the people.” The second, from Abraham Lincoln, is that the role of government is: “…to lift artificial weights from all shoulders, to clear the paths of laudable pursuit for all, to afford all an unfettered start and a fair chance in the race of life.” Continue reading
Fewer Americans will be returning to the work force after the traditional Labor Day holiday. Labor force participation is at the lowest point since the malaise of the Carter presidency. President Obama’s economicpolicies have guaranteed a lower standard of living for Americans.
A recent report by Gordon Green and John Coder of Sentier Research paints the disturbing picture. On the whole, we’re less well off than we were 13 years ago. Our median income, currently $52,000, is 7 percent lower than it was in 2000, using constant dollars. It’s an especially tough punch in the gut to our youth, who’ve seen nearly 10 percent of their income evaporate. Nearly every other demographic category — married or single, man or woman — has been hit. Continue reading
Debt-ridden California needs every cent it can squeeze out of its taxpayers. The government unions that control the state through the Democratic Party are the highest paid state government employees in the nation. Despite being near the bottom in student academic achievement, California is near the top on per-pupil spending. And that $68 billion high-speed train to nowhere that the state is building in the Central Valley won’t pay for itself.
When a state appeals court recently ruled that a 19-year-old tax break for small businesses was unconstitutional, the state’s Franchise Tax Board began going after small business investors for an estimated $120 million in back taxes. “A lot of them don’t have that money anymore. Its been reinvested,” California’s National Federation of Independent Businesses Legislative Director Ken DeVore told CBS News. “It sends a message that you can’t trust government. If you comply in good faith with the rules, they can go back and penalize you.” Continue reading