The $98B Umbrella

probally like what the banks and investment firms did.

Give huge bonuses that amount to $120B to the upper crust.......... then get a government bail out from us because their too big to let fail.

With $98B in the black, it's more likely Apple would give rather than receive a bail out from the federal government.

Most of that $98B is in off-shore banks and investments. As I understand it, it would be subject to a 35% corporate income tax if they tried to 'import' that money into the US. So for every $10B they tried to bring into the US, they'd have to give $3.5B to the Feds and only have $6.5B left over. Not exactly a career-enhancing strategy if you are an executive with Apple.

Here's a good recent article on that.

http://seekingalpha.com/article/318858-how-general-electric-apple-and-google-maintain-a-lower-tax-rate-than-you

^{(tongue in cheek)} the point was,.....after the huge corporate bonuses the $98B is no more. $98B - $120B = ?

But the difference from the banks getting bonuses, is that apple actual made money.

As I point out in the blog, they're not strictly hoarding - they are using it to provide working capital for their supply chain, and as the previous poster pointed out, there are some tax management strategies going on.

Apple's current ratio is 1.6, which is actually on the low side - folks like to be around 2.

Here's an article from last August comparing familiar tech firms. Apple's position is big, larger than any tech firm.

http://thenextweb.com/insider/2011/08/22/big-money-the-companies-with-the-biggest-cash-piles-in-tech/

GA. I ran a company for 3 decades and had seen good and bad years. My biggest problem was always with corp tax rate. In Canada it was 29% at the time (now much less). If I retained and declared a profit I paid the piper the 29%. Now if in the next year my company retained earning were too high and I decided to take it out I would be taxed again on the withdrawn money as a personal tax and at whatever tax bracket I happened to fit personally to a max of 50%. The problem as I saw it was I already paid the tax as corp tax so it is a form of double taxing. Not fair to anyone but the taxman. I had no incentive as a business owner to retain any nest egg in the company. If I had been able to retain the profits earned by the company and let it build a nest egg, I would have been able to get over any rough year without a layoff. In my opinion corporation tax should be outlawed and let the government raise personal tax. An owner could sleep a lot better if the company was more stable. Good on Apple, we should let them run our country and yours. Hell, maybe they already do.

Corporations do not pay taxes, they collect them! Taxes are part of a corporation's bottom line and is included in the cost of their product, therefore their customer or whoever is the end consumer is paying the taxes.

If the corp tax is viewed as a non tax and that it is just a cost of doing business, then you should be viewing the "added" cost of the Made in your country merchandise, as a tax. Don't forget these added costs are submitted to the government. One way or the other they will get the money they need to operate. It is healthier for all to have a strong business. We live in a global community and goods come from many countries with no or low corp "tax". One of the reasons they can sell that product much cheaper is that there is no "added tax" to pay. There are no expensive accountants to pay. The corporation can therefore compete much more effectively. Don't forget that other cost of good (I still prefer tax) called property tax that goes to the municipality. I have no problem with the property tax as it is needed to improve roads and services within the community. If all the corporation tax collected were personal, we would all have much healthier companies. Healthier companies means better sales and better employment stability. Provided, the governments can see the wisdom of not putting that added cost onto the company. All monies earned should be untaxed so the company can grow when it wants and can retain a nest egg for the rougher times. Strange but it always seemed that at the lowest cash flow period your submission was due. I can only speak for Canadian companies and from my own experience. Here in Canada, the uninformed population, would scream that the companies are corporate welfare bums. But the well being of companies are also the reason we thrive or fall as a country.

I do not disagree with you, I just think it is a shame that the masses think taxing the corporations is not taxing them. And yes property tax is fair tax as it does support the local municipality's infrastructure. I am more in favor of a consumption tax, than any kind of income tax for the state and federal levels of government. Here in Oklahoma we individuals pay state income tax, federal income tax, state sales tax, county sales tax, city sales tax, and county property tax.

I don't think the shake-out of the economies in the developed world is over yet (Greece, Portugal, Italy for example). Apple's pile of cash will be very handy this year both to keep them going if sales drop off, and to vacuum up other companies who find themselves in a less fortunate position.

Another issue is that much of the growth in their market may well move into the open-source sector. I understand that Android sales currently top the iphone in the US market. Recent reports of labor problems at Foxxcon may tarnish their image for some buyers. It's also worth remembering that Apple has tended to flounder without Mr. Jobs at the helm, and he is currently unavailable.

It's also worth remembering that Apple has tended to flounder without Mr. Jobs at the helm, and he is currently unavailable.

Could that have been the leadership conflicts at the time! If I remember, Apple wanted to cash in, while Jobs wanted to innovate. Hence Jobs was voted out, then Jobs started next. than apple bought next and rehired Jobs.