The stock of Oracle Corporation (NYSE:ORCL) closed at $50.54 gaining 1,000,890.30% in yesterday’s trading session. This company is collaborating with Apple Inc (NASDAQ:AAPL) in a bid to push for a tax repatriation plan. Mark Hurd, Oracle’s co-chief executive has promised to offer support to any tax change that could help the company channel back its enormous cash pile into the United States.
The U.S. government has plans underway to cut down on the federal corporate tax rate to 20 percent. For over quite some time it has stood at 35 percent. It has also moved ahead to outline that the profits made by the companies oversees could soon be repatriated and that would be at a rate of about 10 percent. At the moment, Oracle has a figure of about $66 billion oversees. That is according to a statement by Hurd who has been outstandingly welcoming of any prospect of being able to use cash in the United States.
Hurd opined, “The opportunity to bring our cash back to the US and to invest it is certainly very attractive. And so for that part of tax reform we are very supportive. You see us raising debt in the United States because of our inability to access our cash offshore.”
For quite some time now, Hurd was been rather critical of the Trump administration and the way it has been moving about mattes since it ascended to power. According to him, tax repatriation was a great opportunity for his firm to make better use of its cash pile.
He confirmed that their inability to access their cash offshore was the perfect explanation as to why they continued to raise debt in the United States. Pressure was mounted on him to make a clarification on whether or not the cash would be used to pay off a part of the company’s sizeable debt. He openly declined to comment in relation to the matter.
Apple’s CEO Tim Cook made his comments outlining that the U.S. tax reform was sorely needed and was supposed to have been fixed years ago.