What the article fails to mention is that corporattions hold multiple headquarters overseas to bring their tax rates down to as little as 1-4% in most cases….so repartiating dollars back home is really not that big of a deal…..espcially when you get corporte welfare.
[youtube://http://www.youtube.com/watch?v=I01-9yujhCA 450 300]“An inefficiency in the US tax code is causing US multinationals to hold more and more cash overseas.
According to data analyzed by Bloomberg, US companies are now holding about $2 trillion abroad.
The multinational companies have accumulated $1.95 trillion outside the U.S., up 11.8 percent from a year earlier, according to securities filings from 307 corporations reviewed by Bloomberg News. Three U.S.-based companies — Microsoft Corp. (MSFT), Apple Inc. and International Business Machines Corp. — added $37.5 billion, or 18.2 percent of the total increase.
The basic issue is that US companies are taxed again on money they make abroad when they repatriate that money to the US (for investment or dividends). So they opt to let it pile up in bank accounts abroad. …”
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