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Wednesday, February 16, 2011

CSCO, AAPL Plan Cash Repatriation Lobbying Blitz, Says Fortune

While ordinary citizens take to the streets in the Middle East, Cisco Systems (CSCO) and other major tech firms are planning to protest in the Valley against tax laws making repatriation of overseas cash unpleasant, writes Fortune’s Tory Newmyer today, citing anonymous sources close to the companies.

Cisco, Apple (AAPL), Duke Energy (DUK), Pfizer (PFE), are “among the major players looking to bankroll a coordinated, sustained pitch to sell policymakers on the idea” of a tax “holiday,” writes Newmyer, adding that the campaign is still in the planning stages. Such a reprieve would tax repatriated cash at 5% rather than the 35% rate companies face currently.

Cisco and Apple are two firms with billions overseas. Cisco’s CEO John Chambers has been a strong and vocal advocate for many years now for the view that allowing cash to be repatriated at lower tax rates would aid investment in the U.S. and allow for a greater return of cash to shareholders through dividends

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