US companies now stashing $2 trillion overseas

[OhioChick]

Source: CNBC

2 Hours Ago

U.S. companies are for the first time holding more than $2 trillion overseas, according to an analysis that paints a bleak picture of whether that money will make its way home and the limited economic impact it would have even if it does.

Corporate cash has hit $2.1 trillion, a sixfold increase over the past 12 years, Capital Economics said, citing its own database as well as that of Audit Analytics and other sources. There is no official total, but the firm also used regulatory filings that included "indefinitely reinvested foreign earnings" to glean the total sitting outside U.S. borders.

"The latest signs suggest that, as business confidence improves in light of the continued economic recovery, U.S. firms are starting to hold less cash domestically," Capital economists Paul Dales and Andrew Hunter said in a report for clients. "However, the foreign cash piles of the largest firms have almost certainly continued to grow."

That total, while daunting in its own right, is now greater than the amount held on U.S. shores, which totals just under $1.9 trillion, according to the latest Federal Reserve flow of funds tally.

Read more: http://www.cnbc.com/id/102178209?trknav=homestack:topnews:1

[LynneSin]

1. Way to put USA first....

NOT!

[oneshooter]

7. Jury results

On Wed Nov 12, 2014, 03:51 PM an alert was sent on the following post:

Would you pay taxes on your income twice?
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=942964

REASON FOR ALERT

This post is disruptive, hurtful, rude, insensitive, over-the-top, or otherwise inappropriate.

ALERTER'S COMMENTS

Is this person on the right forum?

You served on a randomly-selected Jury of DU members which reviewed this post. The review was completed at Wed Nov 12, 2014, 04:01 PM, and the Jury voted 2-5 to LEAVE IT.

Juror #1 voted to LEAVE IT ALONE
Explanation: Post is stupid corporate crap from someone with 3 posts. It should be answered, not hidden, IMO. FFS. GE pays NO taxes and gets a refund....
Juror #2 voted to HIDE IT
Explanation: No explanation given
Juror #3 voted to LEAVE IT ALONE
Explanation: Is there a problem to the alerter that a simple question was asked?
Juror #4 voted to LEAVE IT ALONE
Explanation: All I see here is an opposing opinion. If someone alerted on this because of the author being a newbie then that is a cowardly way of winning an argument. LEAVE IT.
Juror #5 voted to LEAVE IT ALONE
Explanation: I don't know if the alerter or the op are on the right forum. Not my call to make. The alerter made no reference as to the alertable offence.
Juror #6 voted to LEAVE IT ALONE
Explanation: Completely nonsense but not worthy of a hide.
Juror #7 voted to HIDE IT
Explanation: Troll.

[Elmergantry]

10. Thats what I have heard.

I have a bother who is near the top in the taxation department of a multibillion dollar company with overseas operations. He is in the belly of the beast. When discussing the topic he pretty much echoes MTaylors post. He has stated if they weren't punished for bringing the money back home there would be more incentive for them to invest domestically. But instead due to the tax issue, they invest those profits in overseas operations.

[Darb]

12. What is their effective tax rate for operations in the US?

If you say 35% then pass the dutchy. So the nation of their origin, that provided the roads, the courts, the police, other infrastructure, tax incentives out the wazoo, the US Mail, the public school system which undoubtedly educated many of their MBAs, all that good stuff that helped make them successful enough to expand over seas and conquer foreign markets, deserves nothing in return for their assistance in their greater success?

Those corporations are psychopaths and cannot be reasoned with. It appears nobody that works for them has the gumption to point out that they might owe this great nation a sliver of gratitude for their success, or they be summarily sent packing by force of arms.

Please think past the end of your nose. Endless and continued independence from and control of governments by multi-national corporations will not end well. Do you have any inkling of where this will end?

[TygrBright]

2. Gee, what patriotic Americans they are. n/t

[marions ghost]

3. "Foreign cash piles"

...what's that sucking sound?

[closeupready]

4. and it's going to snowball from there.

You wait and see. Republicans are all for tax avoidance/dodging.

[blkmusclmachine]

6. So, where are all those jobs the Pukes have been promising???

[Darb]

13. I think you need to wake up and smell the coffee,

Obama hasn't been able to pass anything through the obstruction in nearly four years. Quit toting water for the psychopathic corps and their bagmen in the GOTP.

[TBF]

14. We?

[Igel]

9. So this includes reinvested foreign earnings.

You earn $300 million in France and invest locally, it's cash being hoarded abroad?

Even if it's buying more equipment to improve production? Even if it's to provide a hedge against losses that might reduce employee perks?

Do we want foreign firms here to invest in local infrastructure projects? In local enterprises?

(Plus, to be honest, a lot is just avoiding higher taxation rates when it's not necessary. Few here refuse the standard deduction and to claim dependents for the sake of paying higher income taxes. Yet we expect others to be held to a standard we don't hold ourselves to. Yeah, it leads to excess and gaming the system.

(Personally, it's one of the effects of amnesty. We had one foreign-earnings repatriation penalty holiday. Once you've had one round of amnesty, you expect--and count on--another. To grant a second amnesty would be to cement the attitude that there'll be a third. This works with overseas earnings and income, it works the same for other kinds of amnesties. Change the system to one that is reasonably accommodating of all the stake-holders or deal with the consequences in a non-hypocritical way.)

[madokie]

11. A thousand billions is a lot of money

isn't that what a trillion is?