Nov. 14, 2017
Apple, Microsoft Poised to Reap Nearly $75 Billion From a Single Provision of Trump’s Tax Plan
Eight Silicon Valley Technology Corporations Hoarding Profits Abroad Stand to Reap $95 Billion From Proposed Tax Holiday
WASHINGTON, D.C. – The tax holiday proposal supported by President Donald Trump and congressional Republicans would give eight top technology corporations a $95 billion tax break, a new report from Public Citizen and the Institute on Taxation and Economic Policy (ITEP) reveals.
Under the proposal, corporations that use tax shelters abroad are offered a deeply discounted tax rate of 14 percent (from 35 percent) in an attempt to lure the corporations to bring their profits back into the U.S.
The eight tech giants collectively hold more than $502 billion offshore, much of which is booked to their 94 tax haven subsidiaries across the globe.
Among technology corporations, the greatest share of offshore profits and potential tax savings would be enjoyed by Apple, which holds an estimated $252.3 billion in three offshore tax haven subsidiaries. This makes Apple the corporation with the greatest amount booked offshore and the corporation with the most to gain from the tax holiday. The value of the proposed tax holiday for Apple is an estimated $47.1 billion.
The second biggest tech beneficiary would be Microsoft, which would gain $27 billion from the tax holiday.
“The richest company in history is hardly in need of a nearly $50 billion tax benefit,” said Robert Weissman, president of Public Citizen. “And it surely should not be rewarded for manipulating the tax system and evading tens of billions of taxes.”
“Apple, the biggest and most infamous international tax dodger, would receive a stunning $47.1 billion in tax breaks under the House tax plan being voted on this week.” said Matthew Gardner, a senior fellow at ITEP. “Far from lavishing tax breaks on Apple and other known tax avoiders, Congress should require these corporate scofflaws to follow the same rules that apply to smaller businesses and pay tax at the statutory rate.”