Will Apple be asked to pay more in taxes due to windfall profits?

[MtnBiker]

Apple shares surge after upbeat earnings
Thu Apr 26, 2007 11:13am ET
Share of Apple Inc. (AAPL.O: Quote, Profile , Research) rose nearly 5 percent on Thursday after the computer maker posted a better-than-expected 88 percent rise in earnings, spurring a handful of analysts to increase price targets on the stock.

Among those who raised their view of the company were Bear Stearns, which set a $143 target, Prudential, which set a $115 target, and WR Hambrecht, which set a $115 target.

Apple's shares on the Nasdaq were up 4.9 percent at $99.99 after hitting $102.50 earlier in the session, the first time the stock has surpassed the $100 mark during regular trading hours.

"Apple appears attractively priced in the context of its growth rate, returns and long-term potential to capitalize on the digital consumer opportunity," said Deutsche Bank analyst Chris Whitmore, who raised his price target to $140.

"We believe Apple's share price will be supported by continued strong customer uptake of iPods, iPhones and new Mac product roll-outs," he added in a note to clients.

Even before the upbeat results, Apple shares had risen about 12 percent this year, after advancing 18 percent in 2006 and more than doubling in 2005.

The bullishness from analysts and investors came in response to quarterly results reported after markets closed on Wednesday that showed big benefits from lower component costs and sales of MacBook laptops and iPod digital media players.

Net income for the fiscal second quarter jumped to $770 million, or 87 cents per share, from $410 million, or 47 cents per share, a year earlier. That beat by far Apple's own forecast, which tends to be cautious, of 54 cents to 56 cents.

http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2007-04-26T151256Z_01_N26336051_RTRUKOC_0_US-APPLE-SHARES.xml&src=rss&rpc=23

[Little-Acorn]

Of course they will. Just as you would if yor income went up. If you are in a 25% tax bracket, and you get a raise, you'll be paying 25% of more.

If your pay goes WAY up, you may find yourself in the 33% tax bracket, or whatever it is now. And you'll be paying even more. Nothing new about any of that. Apple's in the same boat.

Or did you mean, will the govt invent a new, higher tax bracket just for Apple, since they are now rolling in dough (are they?)?

Well, they might. If they do, they'd be motivated by the same principle as the bank robber who was in the news a few generations ago. People asked him why he kept robbing banks. He replied, "Because that's where the money is!"

SHOULD Apple get a new, higher bracket that way? Of course not. What did they do to deserve punishment like that? Come out with products lots of people liked, and were willing to pay for?

That would be nothing but outright theft. Or "progressivism", as it is popularly known in this country. The govt sees a new pile of money, so they take it. No concern for who owns it or whether it's right for them to take it from them.

[Sitarro]

Their MacBook sales are way up, they have sold over 100 million ipods!!!!!!, and have sold 2 and a half BILLION songs. They have the iphone coming out in June which will become the next ipod, their latest desktop tower is unbelievably fast with it's 8 core processor, their Mac Book Pros are due for a big speed increase, the Apple TV set up is being heralded as great by the critics, the 24" iMac is easily the most perfectly designed personal computer of all time,their movie sales are going crazy and their Leopard Operating System is going to make Window's Vista look like dos......all from a company just a few short years ago had experts writing obituaries for it.

An innovative, quality oriented company that produces beautifully designed equipment that many want.....let's tax the shit out of these jerks, maybe we can kill them.

[Little-Acorn]

Additional taxation will, of course, merely reduce their profit line. In other words, it will reduce the dividends shareholders get, such as all the people who have Apple stock in their 401K or retirement portfolios. That's most of us, of course. It won't affect the salaries of Apple executives or other Apple employees.

Smart move.