Re: Idiotic economic system
The reason for the low dividend is twofold. One, due to tax laws and changes in the way compensation is paid, it has become more attractive to buy back shares than it used to. Two, since every major US company began parking cash overseas to delay paying taxes on it, companies started building up large cash hoards instead of returning it to shareholders.
Apple has $232 billion in cash now! It is really less since tax is due on most of it, but it still probably adds up to at least $150 billion if they brought it back into the US. Doing so may not be smart though, because hope springs eternal for corporations that another tax holiday like the ill advised one Bush had a decade ago will happen. Why bring it back at the full rate when you can wait for however many years is necessary for a friendly republican administration willing to grant a temporary lower rate?
Sure would be nice if the US reworked its corporate tax system, lowering the rate in exchange for closing loopholes (such as being able to delay taxes by leaving money overseas) but our government gets more dysfunctional by the day, and our choice between President Hillary or President Donald will likely only make that worse.
Biting the hand that feeds IT
