Intel Corp (INTC)

[Tenchu]

(OFF TOPIC) Robert, from the article:

The government of President Park Geun Hye this month published initial plans for a 10 percent tax on what it says are excessive fund hoards that should either be spent on wages and investment or distributed to shareholders. The levy, which needs lawmakers’ approval, could affect Samsung, which had the equivalent of $60 billion in cash and short-term investments at the end of June. Apple had $38 billion, Bloomberg data show.

This is surprising, given that President Park is supposedly a conservative. Taxing savings is a very Keynesian idea that is favored by Paul Krugman and his left-wing followers.

The key to this story is that Samsung, like all the Korean chaebols, is joined at the hip to Korean politics. You scratch my back, I'll scratch yours. Likely this move is some sort of political struggle between certain Samsung execs and politicians, though I don't have any evidence of this yet.

Now imagine if Obama decided to tax Apple's savings, saying that either Apple return the money to the people or Obama will do it for them. He would face intense right-wing opposition, perhaps justifiably given that taxing savings would not go well in America.

Tenchu