Trump: Apple could be tax free if it makes products in the US

[mongeese]

Big quote: "Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting!" - Donald Trump

Trump's increasing aggression toward China and his strong desires for increases in tariffs have many companies worried. In a public letter to the government, Apple highlighted how the latest $200 billion worth of tariffs would "ultimately show up as a tax on U.S. consumers, [and] they will increase the cost of Apple products that our customers have come to rely on in their daily lives.” As you can see in Trump's tweet above, his solution to that is for Apple to finally move production to the US, something Trump has been campaigning for since before he was elected.

So, will they? To begin with, it's hard to be sure the tariffs will even eventuate; despite Trump saying on Friday that they would "take place very soon," the White House says they are still receiving feedback from the community and no decision has been reached yet.

Secondly, the tariffs would not drastically affect Apple's trillion dollar bottom line, the largest product lines they would affect appear to be Apple Watches, AirPods and HomePods. Substantial, yes; cataclysmic, no.

It's also very unclear exactly what Trump means when he says, "zero tax." Obviously, Apple would have to pay zero import tax if their products were manufactured here, but Trump hasn't specified what other kinds of tax Apple could be exempt from. It could be a lot, or a little. Plus, a tweet isn't exactly a signed document and it wouldn't be the first time Trump has backed away from promises he's made on Twitter.

It's also unknown if any tax reductions would actually make manufacturing in the US worth it. It's alleged that "making iPhones in the US means the cost will more than double.” Apple asked its manufacturing partners Foxconn and Pegatron to investigate the cost of production facilities in the US. Pegatron didn't, saying it simply wasn't viable, and though Foxconn did, they weren't optimistic.

It's hard to foresee if Apple will begin manufacturing in America, but even if they do, it could take years before production kicks off.

Permalink to story.

https://www.techspot.com/news/76339-trump-apple-could-tax-free-if-makes-products.html

 

[Theinsanegamer]

I feel so bad that the richest company in the world that sells $1100 phones, might have to pay a bit more. Smallest violin in the world right here ><.

Bring jobs back to the US and pay back US taxes Mr. Cook, and stop complaining your trillion dollar empire has to pay a bit more to keep using slave labor.

 

[yeeeeman]

I feel so bad that the richest company in the world that sells $1100 phones, might have to pay a bit more. Smallest violin in the world right here ><.

Bring jobs back to the US and pay back US taxes Mr. Cook, and stop complaining your trillion dollar empire has to pay a bit more to keep using slave labor.

Funny thing is that Apple won't pay more. As Tim Cook said, their "loyal customers" who already pay a TON of money for not a whole lot more compared to any other device, will support the extra taxes.
You would expect people to be offended by the higher prices, but knowing Apple customers, they will pay whatever they are asked. So, no issue here.

 

[DelJo63]

Hmm; he didn't understand economics 101 on tariffs so why should he be expected to understand this? It's a non-starter, DOA.

 

[DelJo63]

Hmm; he didn't understand economics 101 on tariffs so why should he be expected to understand this? It's a non-starter, DOA.

 

[Puiu]

Genius! Let's get more taxes from Apple by making them not pay any taxes! Hell, ZERO taxes for everyone!

 

[p51d007]

Build it here, and run up our economy. Look how well our economy did after WW2 when the USA "built everything". Wages were good, CEO's salaries were not CRAZY NUTS, workers could afford houses, cars, appliances. But then, the greedy stock market/ceo's started screwing up the capitalist engine and wanted EVERYTHING for themselves. To turn a profit to keep stocks high, everything went overseas because of China's SLAVE labor. Bring it back to the USA where it belongs, and a side benefit would be less knock offs.

 

[p51d007]

Genius! Let's get more taxes from Apple by making them not pay any taxes! Hell, ZERO taxes for everyone!

I'm ok with that! Get rid of the IRS & the 16th amendment. Enable a consumption tax ie: Fair tax that taxes only on goods purchased, with a prebate on things like food/rent/utilities etc.
23% tax on EVERYTHING. (read up on it, pretty much everything has a "built in 22% tax now, so reducing it will mean a 100 dollar item before the tax, becomes 100 dollars after the tax).
Also, an article five convention of the states to rule in the stupidity from BOTH political parties in DC.
Tie congress, senator's salaries to the national debt/deficit, and STRICT term limits, one term in the house of 5 years, one term in the senate for 10 and THAT'S IT! No more of this run for the house, then run for the senate crap. And, if you are age 67 or older, you MUST retire, including ALL judges "appointed for life".

 

[Evernessince]

I'm ok with that! Get rid of the IRS & the 16th amendment. Enable a consumption tax ie: Fair tax that taxes only on goods purchased, with a prebate on things like food/rent/utilities etc.
23% tax on EVERYTHING. (read up on it, pretty much everything has a "built in 22% tax now, so reducing it will mean a 100 dollar item before the tax, becomes 100 dollars after the tax).
Also, an article five convention of the states to rule in the stupidity from BOTH political parties in DC.
Tie congress, senator's salaries to the national debt/deficit, and STRICT term limits, one term in the house of 5 years, one term in the senate for 10 and THAT'S IT! No more of this run for the house, then run for the senate crap. And, if you are age 67 or older, you MUST retire, including ALL judges "appointed for life".

Taxes are far too complicated to replace everything with a single type of tax left. "Consumption" tax is in place in certain states and has been used many times before. The consensus is pretty clear that it pretty heavily targets the middle class. Having no tax on real estate, businesses, and investment just to name a few is a huge mistake. That should go without saying when you only target one citizen class.

 

[cliffordcooley]

Taxes are far too complicated to replace everything with a single type of tax left.

Taxes are only complicated because they were made complicated. The complication can still be done away with. We just have to be willing. I'm willing. It doesn't seem like you are though.

 

[Evernessince]

Taxes are only complicated because they were made complicated. The complication can still be done away with. We just have to be willing. I'm willing. It doesn't seem like you are though.

No, taxes are complicated because their are hundreds of millions of people in this country. "Who knew taxes could be so complicated!".

You should go tell the tax lawyers who spent 8 years in college how easy it is to simply the code. I'm sure you know more than them.

 

[Reehahs]

Would the added benefits come from employment of the whole supply chain being based in the US?

 

[Hammayon]

HAHAHHA

Not charging corporations taxes

Make the middle and lower class pay for military spending

Genius!

iNSTEAD OF FORCING APPLE AND OTHER COMPANIES FROM OUTSOURCING, solving the problem of jobs and money going overseas, he's trying to seduce them by not paying taxes.

Change your stupid capitalist economic system

And stop spending so much on military

Give your people free health care, education, and bring the jobs back.

Loser

 

[cliffordcooley]

You should go tell the tax lawyers who spent 8 years in college how easy it is to simply the code. I'm sure you know more than them.

Maybe you should reread my comment. The complications are from stupidity. People thinking they are exempt or simply shouldn't pay as much as everyone else. Even the board out again and the complication will disappear. This very topic is proof as to how the wealthiest company thinks they are exempt. Since they are the wealthiest they should be the greatest tax asset. Instead our government would rather the IRS harass the little guy. You speak of the needless complications as if they are needed. Yeah they are needed for the guy that takes advantage of them. That definitely wouldn't be the guy that needs a break the most.

 

[Puiu]

Would the added benefits come from employment of the whole supply chain being based in the US?

Not really. Most of workers would need to be from other countries and so would the parts needed.

The only thing that would happen is very low wages, increased production costs and lower build quality of products (if you can believe that's even possible).

 

[maddogmcgee]

Build it here, and run up our economy. Look how well our economy did after WW2 when the USA "built everything". Wages were good, CEO's salaries were not CRAZY NUTS, workers could afford houses, cars, appliances. But then, the greedy stock market/ceo's started screwing up the capitalist engine and wanted EVERYTHING for themselves. To turn a profit to keep stocks high, everything went overseas because of China's SLAVE labor. Bring it back to the USA where it belongs, and a side benefit would be less knock offs.

Except now we live in a global world. The post ww2 success was made off the back of huge untapped demand in America for items. Today, Most of the iPhones made dont actually go to the US. Why would I as an Aussie want to pay double for a phone made in America ?

 

[Evernessince]

Maybe you should reread my comment. The complications are from stupidity. People thinking they are exempt or simply shouldn't pay as much as everyone else. Even the board out again and the complication will disappear. This very topic is proof as to how the wealthiest company thinks they are exempt. Since they are the wealthiest they should be the greatest tax asset. Instead our government would rather the IRS harass the little guy. You speak of the needless complications as if they are needed. Yeah they are needed for the guy that takes advantage of them. That definitely wouldn't be the guy that needs a break the most.

Apple is pretty much exempt from taxes right now. They pay an actual tax rate of 8%. You can get rid of the loopholes that the rich people and wealthy companies use but I still wouldn't call that simple. Being complicated isn't the issue, it's that the rules overwhelmingly favor one party. You don't have to reform tax law to make it easier for the everyday man to take advantage of every dollar. Simply make it easier for them to file and to take advantage of every deduction and dollar they can and make sure the rich are paying their fair share. Right now our tax system UI is akin DOS, it's very manual and requires a lot of work. It needs to be made user friendly.

 

[seeprime]

HAHAHHA

Not charging corporations taxes

Make the middle and lower class pay for military spending

Genius!

iNSTEAD OF FORCING APPLE AND OTHER COMPANIES FROM OUTSOURCING, solving the problem of jobs and money going overseas, he's trying to seduce them by not paying taxes.

Change your stupid capitalist economic system

And stop spending so much on military

Give your people free health care, education, and bring the jobs back.

Loser

Hey comrade, let's not forget that to cheat every possible country out of taxes, Apple set up corporations in Ireland and funneled it's "income" through there "on paper" to pay as little tax as possible. Apple was fined 13 billion Euros by the EU and was told to pay Ireland the amount in back taxes. Being only a trillion dollar company, they of course are fighting this ruling, with the help of Ireland that must be getting some back room breaks from Apple. https://www.theguardian.com/world/2018/apr/24/ireland-apple-eu-tax-appeal-autumn The whole tax system is corrupt and stinks.

 

[Kashim]

What people don't seem to understand is that it's still cheaper to make stuff in China even with the tariffs. So these companies will happy pass the "Trump Tax" on to the customer. At least the government will be making some nice money off this. The past and future tax cuts for the rich has to come from somewhere.

This is the new Trump style trickle down economy. First blow a giant whole in the budge by giving big piles of money to the rich, then find ways to make that money back off the poor somehow. Sounds great to me.

 

[psycros]

What people don't seem to understand is that it's still cheaper to make stuff in China even with the tariffs. So these companies will happy pass the "Trump Tax" on to the customer. At least the government will be making some nice money off this. The past and future tax cuts for the rich has to come from somewhere.

This is the new Trump style trickle down economy. First blow a giant whole in the budge by giving big piles of money to the rich, then find ways to make that money back off the poor somehow. Sounds great to me.

Giant hole in the budget? Tax revenues are up, hiring is up, ALL the markets are up..pretty much every economic indicator is positive right now. Piles of money to the rich? You mean the tens of billions of dollars handed over to Wall Street crooks who crashed the economy? Oh wait, that was the two PREVIOUS administrations. And yes, until China starts to really feel the pain of being tariffed EXACTLY THE SAME AS THEY TARIFF THE US it will still be cheaper to build things over there. The change will start with one major US company bringing jobs back to America because the PR gain is worth giving up the slight advantage they still have from producing products overseas..and then another will follow suit, and another, and then the landslide will commence. Naturally, we'll need to employ further protectionist measures as time goes by to insure that the corporations don't simply build new plants in other highly exploitable parts of the world. This is exactly how the Asian Tigers have enjoyed such explosive growth: taking all the most valuable resources from around the globe and building everything at home.

 

[m4a4]

Apple's margins are big enough that they could easily keep their current prices with tariffs. But hey, it's an excuse to raise prices, and their loyal customers will go along with it...

And I have this funny feeling he means import tax, not literally all tax. Yet some people here seem to be taking it as if it was confirmed as the latter.
Man, some people are too desperate to comment on things without thinking it through...

 

[kapital98]

Would the added benefits come from employment of the whole supply chain being based in the US?

Changing any method of supply would distort the market and work against the fundamental principles of Ricardian trade theory (and all subsequent trade theory). It is worse for the US, China, and ultimately leads to less production in total.

While it may lead to new manufacturing jobs, it will be drastically outweighed by increased prices for consumers (and thereby less total jobs in the economy). The argument that Apple would eat the costs is also not backed up by any theory -- they would already be doing it but they don't due to their business model. For an example, look at how badly the US trade tariffs on steel have been under the Bush and Trump administrations -- good for steel workers, terrible for everyone who uses steel.

^Btw, I'm responding to you because you're about the only reasonable person in this thread. I'm a staunch Apple critic but their stance is correct on this issue.

 

[Dimitrios]

Even if you hate Trump APPLE is full of $hit!!!!!!! How much does each Phone cost versus the price it is sold as???? Was it like $38 to make and they sell for $1,000? Why raise the price APPLE? Oh because of greed and want enough money so your great grandson can afford 5 mansions, 2 yachts and hookers?

 

[gusticles41]

Even if you hate Trump APPLE is full of $hit!!!!!!! How much does each Phone cost versus the price it is sold as???? Was it like $38 to make and they sell for $1,000? Why raise the price APPLE? Oh because of greed and want enough money so your great grandson can afford 5 mansions, 2 yachts and hookers?

Not that I support Apple in any way, but more of the high cost is reflected in R&D (mostly D because it's Apple), advertising, and staffing 40 employees at every Apple store.

 

[CBTex]

Build it here, and run up our economy. Look how well our economy did after WW2 when the USA "built everything". Wages were good, CEO's salaries were not CRAZY NUTS, workers could afford houses, cars, appliances. But then, the greedy stock market/ceo's started screwing up the capitalist engine and wanted EVERYTHING for themselves. To turn a profit to keep stocks high, everything went overseas because of China's SLAVE labor. Bring it back to the USA where it belongs, and a side benefit would be less knock offs.

Except now we live in a global world. The post ww2 success was made off the back of huge untapped demand in America for items. Today, Most of the iPhones made dont actually go to the US. Why would I as an Aussie want to pay double for a phone made in America ?

Why do you assume that Apple would make all phones in the USA? Most likely they would use manufacturing facilities located in multiple places. You Aussies could still buy you Chinese made phones if that's what you want.