Wednesday, May 2, 2018
Apple Announces Plan To Buyback $100 Billion Of Its Stock
The Trump tax bill provided Apple with access to over $200 billion in profits that have been held tax free in Europe. Apple announced that they will use $100 billion to buyback their own stock. That will be great for shareholders since it will increase the value of their stock. Like many Apple shareholders I will be a bit wealthier. However, I won't spend the money that Apple decided to return to me; nor will most Apple investors. We will all be a bit wealthier, but the buyback will do nothing for the economy, or for most of the people that expected to benefit from Trump's tax bill. Moreover, the loss of tax revenue to the government from the tax bill will increase federal budget deficits. That will put pressure on government social welfare programs that they depend upon for support. That includes many who voted for Trump. Some of them would rather lose their benefits as long as they will also be reduced for citizens who they don't like.