Apple, Google and Microsoft Are Hoarding $464 Billion In Cash (cnn.com)

Apple, Google and Microsoft are sitting on a mountain of cash -- and most of it is stashed far away from the taxman. Those three tech behemoths held a total of $464 billion in cash at the end of last year, according to a Moody's report published this week. From a report: Apple alone had a stunning quarter-trillion dollars of cash thanks to years of gigantic profits and few major acquisitions. That's enough money to buy Netflix three times. It's also more cash than what's sitting on the balance sheet of every major industry except tech and health care. All told, non-financial U.S. companies studied by Moody's hoarded $1.84 trillion of cash at the end of last year. That's up 11% from 2015 and nearly two and a half times the 2008 level. Roughly $1.3 trillion -- 70% of the total -- is being held overseas, where the money isn't subject to U.S. taxes. Apple, Google owner Alphabet, Microsoft, Cisco, and Oracle hold 88% of their cash overseas. Moody's said the tower of money stashed abroad reflects the "negative tax consequences of permanently repatriating money to the U.S."

Comments

Re:Wheres the source of the cash?

[Daemonik]

I think that if they repatriate this money they'll do exactly the same thing financial institutes have done with their cash. Sit on it. They won't "encourage local economic growth". If anything they'll reduce local economic growth by buying up and removing competition. Growth of anyone but themselves is not in their interests.

Re:Wheres the source of the cash?

[diesalesmandie]

Personally, I believe that the issue is the USA's tax rates are too high on these companies so they are being encouraged to do business overseas instead of in their home country to shelter themselves from the tax rates in the USA.

Do you honestly believe if the USA's tax rates would be lower that they would pay US taxes? They do what they do because they can, plain and simple.

Re: Wheres the source of the cash?

[TiggertheMad]

The worst thing about Ayn Rand is that dumb people latch onto her crazy ideas and think that they are actually rationally sound. Her prose was terrible, but I really like her as a writer, because anytime someone starts talking about Atlas Shrugged I know I can just ignore the person. It's sort of like a big sign that says, 'I am not worth talking to' hanging over their head.