Exact(40)
They could just bring it back and pay taxes (some do) but some are asking Congress to give them a "repatriation tax holiday," letting them bring the money back ("repatriate" it) at a much, much lower tax rate than they would usually have to pay.
But inverted companies are free to use this cash without paying the steep repatriation tax faced by American companies.
More than a trillion dollars in cash and short-term investments sits in offshore holding companies, awaiting a repatriation tax holiday.
There is reason to be equally concerned about companies that respect the accounting rules and, in order to avoid the repatriation tax, actually reinvest overseas.
— Nick Bilton Apple Chief to Propose Tax Overhaul Washingtonpost.com | The last repatriation tax break didn't accomplish much, so what could Apple propose that would work better?
As economic theory would predict, corporate managers are willing to accept a lower pretax rate of return and create jobs overseas rather than paying the repatriation tax and create jobs at home.
Similar(20)
To bring that cash back to the United States, Apple would have to pay hefty repatriation taxes, very likely more than 30 percent.
Much of Apple's cash is generated overseas and can't be paid out to shareholders without being subject to repatriation taxes.
A 2007 study in the Journal of Financial Economics found that among multinational corporations, those facing higher repatriation taxes tended to hold more cash abroad than those facing lower tax burdens.
EBay had $3.19 billion in cash at the end of last year, but $2.8 billion of that money is overseas and would be subject to repatriation taxes if the company were to invest it in its ailing United States e-commerce marketplace, according to analysts.
It anticipates $38 billion coming from repatriation taxes, but much of it will be capital expenditures on the part of the company.
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