Cisco Won't hire more Americans or acquire American Companies Due to 35% Corporate Tax

[Joel thakkar]

Source : http://www.businessinsider.com/cisco-not-acquiring-us-companies-2013-2

"If the majority of our money remains outside the U.S., and this depends on tax policies, that's where you'll see us acquire going forward"

Cisco has $46 billion in cash and 80% of that is remaining Overseas. Thus around $35 billion in overseas.

I also like the comment made by TE on this issue

"The reason so much cash is overseas is because US earned profits that would normally be taxed as income in the US are being shifted overseas through a shell game.

This isn't an argument about taxing legitimate profits made in China etc. Its about sending US earned profits overseas and falsely calling them overseas earnings.

These companies don't want to pay any US taxes - they want everything for free."

[sinkingfeeling]

1. Thought Oracle owned Cisco now.

[Joel thakkar]

2. No

Oracle owns Sun microsystems (Java)....oracle recently acquired Acme Packet which makes oracle now a direct competitor in cisco's various business fields.

[Sekhmets Daughter]

3. Can someone explain to me

Just how these figures tabulate at 35%?

Period Ending Jul 27, 2012

Income Before Tax 10,159,000
Income Tax Expense 2,118,000

[Joel thakkar]

4. here you go

Corporate tax rates in usa : http://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States#Federal_tax_rates

I think cisco paid less due to various tax breaks.

[Sekhmets Daughter]

7. Exactly...so what's their problem?

I know the stated tax is 35%...but if they're paying 20%, just how freakin' low do they want those taxes?

[Joel thakkar]

9. Gaming The System

Many major companies just report more earnings in those countries where corporate taxes are zero or very less through few loopholes, unethical accounting techniques and bribes.

Thus, their income doesn't get taxed. But as they showed income in that tax heaven country, their money is also in that country.

Now if they want to transfer money to USA, they are charged 35%...thus to lower corporate rates (or to provide them tax subsidies) they are false crying that they won't hire more Americans and acquire American companies.

[Broken_Hero]

10. To be honest they want those rates

to be ZERO, and they want our tax money. I pay 35% and contribute, I don't threaten our economy or people's jobs, but these entitled rich fucks want everything, for nothing.

[JaneyVee]

5. When did CEOs become such assholes that they now announce how unpatriotic they are?

[Sekhmets Daughter]

8. About the time they crippled the unions.

It's all of a piece. Business schools teaching the only thing is "shareholder value"

[KamaAina]

6. "These companies don't want to pay any US taxes - they want everything for free."

And guess who supports them? Our area's Democratic congressional reps, especially Anna Eshoo (D-Apple).

As to them hiring Americans, it hasn't happened in a while. About three years ago, I lived in an apartment complex down the light rail line from Cisco. Everyone else who got on the train with me and got off at Cisco (it has its own stop, "Cisco Way"!) was Indian.

[Blue_Tires]

11. +1

[Broken_Hero]

14. +1 nt

[City Lights]

12. Greedy people suck. nt

[joeglow3]

13. How do you send "US earned profits" overseas

I have been involved with transfer pricing audits and the IRS beats you up pretty well. Has the IRS not audited Cisco in a while?