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Thread: U.S. Companies Now Stashing $2 Trillion Overseas

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    U.S. Companies Now Stashing $2 Trillion Overseas

    UU.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."


    Read more @: U.S. Companies Now Stashing $2 Trillion Overseas

    If only the $2 trillion would trickle down! But hey even if our tax laws are reduced (even tho we have a pretty damn low effective corporate tax rate), would be reduced it would do little to the economy.


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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    It's not sitting there in an big pile or some vault in Switzerland. That money is in use and paying investors large and small, salaries large and small. Americans can and do invest in the FOREX. A lot of American retirement income is from such investments.

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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    Quote Originally Posted by TheDemSocialist View Post
    Read more @: U.S. Companies Now Stashing $2 Trillion Overseas

    If only the $2 trillion would trickle down! But hey even if our tax laws are reduced (even tho we have a pretty damn low effective corporate tax rate), would be reduced it would do little to the economy. [/FONT][/COLOR]
    Exactly. It's money that these company don't need, so they leave it where it is to avoid taxation. If it was needed for expansion (to meet demand), then it would be repatriated, regardless of taxation.

    Now let's say that we had a tax holiday that would allow this money to come back to the US with no taxation. Even then, much of it likely wouldn't come back, simply because it's not needed by the corporations.

    But let's say that it did come back, and was deposited into US banks. So what? It still wouldn't create additional demand, and thus wouldn't result in job growth or wealth production. Our banks are already fully supplied with all the money they need to lend to every single credit worthy person who is willing to borrow - our banking system is designed that way. So that money would just sit idle, most likely being deposited by the banks into their accounts with the fed.

    The reality is that it's excess money that simply isn't needed to fill demand.
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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    Quote Originally Posted by clownboy View Post
    It's not sitting there in an big pile or some vault in Switzerland. That money is in use and paying investors large and small, salaries large and small. Americans can and do invest in the FOREX. A lot of American retirement income is from such investments.
    Uhhh: "most of that cash was used to fund dividend payouts and share buybacks rather than to boost investment." A Democratic congressional report indicated that the biggest companies receiving the benefits of $360 billion in repatriated funds actually cut a net 20,000 jobs, and that the holiday cost Treasury coffers $3.3 billion... Very little, then, went to hiring and reinvestment."


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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    Quote Originally Posted by TheDemSocialist View Post

    If only the $2 trillion would trickle down! But hey even if our tax laws are reduced (even tho we have a pretty damn low effective corporate tax rate), would be reduced it would do little to the economy. [/FONT][/COLOR]
    How little would it do for the economy?

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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    Quote Originally Posted by fmw View Post
    How little would it do for the economy?
    Very little? As in maybe close to zero?

    The only way it would do any good is if it was spent. But the companies that own this money are already spending all they money that they feel the need to spend, so bringing it back wouldn't result in any more spending, or investment, or demand.
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    Quote Originally Posted by Papa bull View Post
    I see a big problem with the idea that whatever the majority wants is OK.

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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    Quote Originally Posted by TheDemSocialist View Post
    Read more @: U.S. Companies Now Stashing $2 Trillion Overseas

    If only the $2 trillion would trickle down! But hey even if our tax laws are reduced (even tho we have a pretty damn low effective corporate tax rate), would be reduced it would do little to the economy. [/FONT][/COLOR]


    HOw much of my companies money are you entitled to?

    are rates are among the highest. higher than canada.

    USA - In Photos: Global Corporate Tax Rates From Lowest To Highest - Forbes
    Let evil swiftly befall those who have wrongly condemned us

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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    Quote Originally Posted by TheDemSocialist View Post
    Uhhh: "most of that cash was used to fund dividend payouts and share buybacks rather than to boost investment." A Democratic congressional report indicated that the biggest companies receiving the benefits of $360 billion in repatriated funds actually cut a net 20,000 jobs, and that the holiday cost Treasury coffers $3.3 billion... Very little, then, went to hiring and reinvestment."
    Hah! Really, you don't seem to understand that dividend and share buybacks are payments on investments. These investors are large and small, American and not. Salaries and retirements are paid from the proceeds. That 3.3 billion you mention is as a direct result of globalization.

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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    Quote Originally Posted by ReverendHellh0und View Post
    HOw much of my companies money are you entitled to?

    are rates are among the highest. higher than canada.

    USA - In Photos: Global Corporate Tax Rates From Lowest To Highest - Forbes
    You might wanna check the EFFECTIVE corporate tax rate...


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    Re: U.S. Companies Now Stashing $2 Trillion Overseas

    Quote Originally Posted by TheDemSocialist View Post
    You might wanna check the EFFECTIVE corporate tax rate...



    That is "Effective" it was accounted for.
    Let evil swiftly befall those who have wrongly condemned us

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