Apple, Microsoft, Amazon, Facebook, Intel, and Alphabet had a combined $100B+ in overseas pretax income in FY 2020, making them targets of Biden’s new tax plans — – Biden plan takes aim at popular tech tax-code maneuvers — Book income tax would have cost Apple alone $3.8 bln in 2020.
The Tax Plan Targets a $100 Billion Foreign Profit Hoard of Big Tech
Biden’s plan targets tech tax code maneuvers that are popular among tech companies
Apple alone has been estimated to have lost $3.8 billion in 2020 as a result of book income taxes
Apple Inc. and Microsoft Corp., two of the largest technology companies in the world, have disclosed more than $100 billion in foreign profits in their last fiscal years, making them prime targets for President Biden’s proposal to increase taxes on foreign earnings.
This month, a new set of tax proposals was unveiled to help pay for the massive infrastructure projects that the United States is planning. These tax proposals target common tactics used by U.S. multinational corporations such as stashing income-generating assets offshore, which are less likely to be taxed. There is no doubt that the tech industry is particularly adept at shifting profits to tax-friendly locales due to the fact that the main assets of this industry are computer software, patents, and other intellectual property, which are relatively easy to move around in comparison with factories and other physical assets.