Trump's tax plan could save Apple big bucks if it repatriates overseas cash holdings

On the campaign trail, Donald Trump attacked Apple for a number of different reasons. Early in the year, he tried to start a boycott of the company because of its refusal to unlock an iPhone that belonged to a deceased terrorist. He also complained that Apple was manufacturing its products using overseas labor. He called for a 35% import tax on products made by U.S. companies in other countries.

Yet, Trump's proposed tax plan could actually help Apple save a ton of money if it becomes the law of the land. Thanks in great part to the iPhone, Apple currently has an astounding cash hoard of $237 billion. Close to $200 billion of that money is currently sitting in overseas bank vaults, collecting interest. A chart produced by Statista reveals that only $16.6 billion of Apple's cash holdings are in U.S. banks. Apple keeps its funds overseas so that the company isn't required to pay the top corporate tax rate of 35% in the U.S.

This isn't unusual in the corporate world. Many pharmaceutical firms keep money in overseas banks, and other tech firms like Google also keep a large amount of cash overseas. All of these companies, including Apple, will be given a chance to bring home a large amount of money at a significant tax savings according to the President-Elect's web site. Funds repatriated back to the U.S. will be subject to a one time tax of 10% instead of the current 35%. 

"The Trump Plan will lower the business tax rate from 35 percent to 15 percent, and eliminate the corporate alternative minimum tax. This rate is available to all businesses, both small and large, that want to retain the profits within the business. It will provide a deemed repatriation of corporate profits held offshore at a one-time tax rate of 10 percent."-Trump's Tax Plan

We don't know how much money Apple would choose to bring back home if this Tax holiday becomes law. But considering that it would be a one-time break, we wouldn't be surprised if the tech titan wired at least half of its overseas cash holdings back home.