(Courtesy of Apple Insider)
The iPhone maker’s cash and investments have continued to grow every quarter for the company. For example, two years ago, Apple had $31.1 billion in cash and investments.
During Apple’s quarterly earnings conference call, Chief Financial Officer Peter Oppenheimer went out of his way to note that a majority of Apple’s cash and investments — about two-thirds — are held overseas. His mention of it was particularly interesting because Apple has backed a proposed tax holiday that some U.S. corporations have lobbied the government to enact.
Apple is among a consortium of companies, including Cisco, Duke Energy, Oracle and Pfizer, who are pushing for a one-time tax break on an estimated $1 trillion held by corporations in overseas accounts. Those companies currently face a 35 percent tax on any profits they generate outside of the U.S.
Under the proposed plan, companies would benefit from a temporary tax break with a tax rate of just 5 percent in a one-year period. The companies have said they could justify the tax break by investing the funds in research, hiring and other domestic spending that could benefit the U.S. economy.