Treasury Shortchanges Itself

If you were buying something, would you rather pay 2% or 35%?  If you were investing, would you opt for a minus return?

Apple today announced it was issuing about $19 billion in bonds that will probably price at a 2% yield, meaning that money will cost 2% but will, in turn, provide an interest tax deduction so the 2% is actually less.  All this to raise cash without bringing back to the US money earned overseas. If Apple brought that money back it would incur about a 35% tax bill.  So it's smarter to sell bonds to raise money to fund growth, dividends, and share buybacks.  The net result is that the US Treasury collects less taxes from Apple, provides the company with a tax deduction, and sits on its high-horse taxation policy.