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Saturday, December 31, 2016

How Trump will save Apple (and Google and all the rest)

2016 cannot end soon enough for Apple, the New York Post reported.

From the New York Post:
For Tim Cook, 2016 is a year that can’t end soon enough.
Apple’s chief executive has been battling lackluster results at the Cupertino, Calif.-based tech giant, with critics blaming ho-hum sales on an increasingly stale lineup of gadgets — including the iPhone.
The most recent evidence came Friday, with a report from Nikkei, the Japanese news agency, that Apple will slash production of the iPhone 7 by about 10 percent because it “has sold more sluggishly than expected.”
Oh my.
Quarterly sales of the iPhone — by many measures the most successful consumer product in history — dropped for the first time ever.
Oh dear.
Cook had pleaded that the iPhone 6S — whose sales dropped 15 percent and 16 percent in the spring and summer quarters, respectively — was more or less a placeholder product ahead of the iPhone 7.
Gloom.

Despair.

Agony on thee.

Deep dark depression -- excessive misery.

So we should all sell our Apple stock, right?

Wrong.

Its stock went up 10% last year.

And it should do better this year.
Indeed, the biggest reason to buy Apple shares, according to many bulls, has nothing to do with the company’s products. Rather, it’s the prospect of a massive stock buyback in the event that Apple gets a tax holiday from the Trump administration to bring its mountain of overseas cash back to the US.
Yep.

Make Apple Great Again.

And GE. Google. Microsoft...

President Trump's call to drop the corporate tax on profits parked overseas from 35% down to 10% is a big reason for the stock market rally since Election Day, and why companies are investing in the USA.

The reported overseas profits that could return to the United States under this deal are worth $2.6 Trillion.

The list reportedly includes:
GE $119 billion
Microsoft $92.9 billion
Pfizer $74 billion
Apple $69.7 billion
IBM $61.4 billion
Merck $60 billion
Johnson and Johnson $53.4 billion
Cisco Systems $52.7 billion
Exxon $51 billion
Google $47.4 billion
That is a lot of money.

Corporate taxes are a $500 billion-a-year annual expense for business in the United States. And that is just on the federal level.

Repatriating this money and reducing future corporate taxes from the current 35% down to 15% would free money for investment, such as modernizing and retrofitting factories.

That $2.6 trillion (minus the 10% tax) has potential to revitalize American industry in a way not seen since I was a child.

But hey, The Donald said something eleven years ago so that disqualified him to be president.

Right?

By the way, in the 1970s, they said Trump could not get Manhattan going again. He did.

@@@

Please read "Trump the Press," in which I skewer media experts who wrongly predicted Trump would lose the Republican nomination. "Trump the Press" is available as a paperback, and on Kindle.

It covers the nomination process only. The general election will be covered in a sequel.

For an autographed copy, email me at DonSurber@GMail.com

Also, "Exceptional Americans" is available in paperback and on Kindle.

12 comments:

  1. "By the way, in the 1970s, they said Trump could not get Manhattan going again. He did."

    He almost went broke doing it, so he's a failure. #ProgLogic

    ReplyDelete
  2. Oh, the HORROR!! The horror...for
    progs/libs/dems/their media minions.

    ReplyDelete
  3. Lots of stocks went up 10% this year (esp. since July 1), so Apple's performance is nothing exceptional. Apple gets most of its profits these days from the heavily saturated market in mobile phones, where the price competition is becoming vicious. Its computer business is lackluster, almost moribund. Apple hasn't updated its top of the line desktops in three years, it no longer offers displays or most other computer peripherals, its laptops are overpriced and under configured versus the Windows competition, and it's spending a bundle of money trying (thus far unsuccessfully) to beat GoogleAmazon in a race to create a new business line of autonomous-driving cars. Under Tim Cook, Apple has become a lifestyle company that sells silly electronic gadgets to 13 y/o teenage girls and a dedicated SJW in the gender and race wars that divide the country. Tim Cook et al. are doing to Apple what Obama has done to the Democratic Party, reducing a once innovative and technologically thriving company to a shambles.

    ReplyDelete
  4. Why reduce corporation income taxes when eliminating all of these taxes will produce an even better result, more investment in jobs and facilities through more aggressive business expansion.

    This idea has been around for years and it certainly didn't come from the juvenile mind of The Donald. Trump does enough rah-rah for Trump so he doesn't need anyone else exaggerating and lying on his behalf because nobody loves Donald like Donald.

    ReplyDelete
    Replies
    1. Happy New Year.
      Obama propose it?
      Bush?
      Clinton?
      The other Bush?

      Delete
    2. gadfly - I don't understand your actual point. Is lower corporate tax a good or a bad idea? You don't expand on your comment but then launch into a troll attack on Trump because Trump. TDS on display.

      Delete
    3. I believe my post above applies to the fly.

      Delete
    4. Let's face it Sam; a troll's gonna troll. Just like Widdle Barrie ObaMao's gonna whine. It's what they do.
      -Fred

      Delete
    5. There's nothing to prevent cities and states from raising their taxes on corporations if the Federal income tax is lowered, if they think it's such a good idea. My guess is they will be slow to do so, and the ones that do will see businesses move to states that don't.

      Liberal Democrats like Fly don't argue the economics of low taxes in good faith; they prefer to hold people and businesses captive so they can impose punitively high taxes. But when high- and low-tax states compete for companies, and the low-tax states thrive as their economies expand and tax revenues increase, the beneficial impact of low tax rates becomes clear.

      Delete
  5. There wasn't much doubt that President-elect Trump's idea is a good one- but it's nice to have it confirmed by Barfly!

    (General principle that works almost always- if the trolls hate it, it's a good idea!)

    ReplyDelete
  6. We can expect to hear a lot of "tax cuts for the rich" whining. That'll be fun. But at least now we know that only the brainwashed and the stupid pay any attention at all to that stupid b.s.

    ReplyDelete