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Apple Pie

The recent tax legislation reducing corporate income tax from 35% to 21% has begun priming the pump, big time. The most recent example is Apple, which…

Anthony LoPinto

The recent tax legislation reducing corporate income tax from 35% to 21% has begun priming the pump, big time. The most recent example is Apple, which announced that it is coughing up a $38-billion tax payment that reflects a one-time tax on overseas profits held in cash or other liquid assets at a 15.5% tax rate, a far cry from the old corporate levy. In trade, Apple will bring home almost $250 billion after tax which will enable the company to reward shareholders with share buybacks and dividends, but more importantly, to double-down on research and development, key to keeping Apple highly competitive.

I suspect with this treasure chest of repatriated cash, employees will also enjoy economic benefits, otherwise not available with cash sitting in some foreign land gathering dust. In just a few short weeks we are seeing the pump being primed on the corporate front. There is a lot to complain about with the new tax law, SALT and all, but the corporate tax reduction will provide significant economic incentives that will ripple throughout the economy.

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Anthony J. LoPinto

Anthony J. LoPinto

Tony LoPinto is the Global Sector Leader of Korn Ferry’s Real Estate Practice and founder of SelectLeaders. For the past 18 years LoPinto has been serving his clients with deep knowledge and perspective on talent needs and organizational challenges to public and private companies – knowledge gained from a 25-year career in real estate. Prior to his current position, he founded and served as chief executive officer of a boutique real estate executive search firm, where he oversaw offices in New York, Chicago, Washington, DC, San Francisco and Los Angeles. He has successfully led several high profile search engagements for chief executive officers, directors and a wide-range of executive level positions across all industries and sectors. He earned a Bachelor of Arts degree in European history from Loyola University in Chicago.

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