Companies

May 2, 2018

Thanks, Donald: Apple hands out a $100 billion taxpayer-funded windfall

Apple has used the Republicans' company tax cuts in the US to announce a $100 billion share buyback and a massive increase in its dividend - demonstrating yet again that the tax cut is flowing only to shareholders.

Glenn Dyer and Bernard Keane

Crikey business and media commentator / Politics editor

Apple

With even senior Republicans like Marco Rubio now attacking the Trump company tax cut, that the biggest US firms are now pumping most of the tax cut windfall in share buybacks is no longer really news. That will come as a relief to the Financial Review, where they've been holding out on mentioning the new all-time record share buyback spree that has occurred in the US since the start of the year out of concern that it messes up its pro-company tax cut agenda.

But one buyback is so extraordinarily large that even the Fin was forced to mention it today. In Apple's March quarter earnings statement this morning it confirmed market reports that it will boost its share buyback by $100 billion over the next few years. That’s on top of its current buyback process which will have purchased $US210 billion by the time it ends in June.

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