Trump’s tech boon
By MICHAEL LIEDTKE
President-elect Donald Trump didn't win many fans in the tech sector during his campaign, but his pledge to slash U.S. taxes on cash stashed overseas might gain him some goodwill.
Apple will be the biggest winner if Trump, as promised, temporarily cuts the tax rate on profits in foreign accounts to 10 percent from the current 35 percent. The iPhone maker has $216 billion parked overseas — fully 91 percent of its total cash.
Apple CEO Tim Cook has been pushing for the tax break, so it's likely the company would bring much of that cash home.
Two of Apple's biggest rivals, Microsoft ($111 billion in foreign accounts) and Google's corporate parent, Alphabet (nearly $50 billion), also are set up for big windfalls.
Trump also promised to permanently reduce corporate taxes on U.S. income to 15 percent.
But tech wouldn't benefit from that change as much as other industries, based on an analysis by Bernstein. The average effective tax rate in technology is about 21 percent, compared with an average of nearly 26 percent among the 1,500 largest companies tracked by Standard and Poor's.Associated Press