How Companies Would Gain From a U.S. Tax Holiday on Repatriated Funds

This topic generates passions on both sides of the aisle. Those for a tax amnesty on repatriated funds argue it will generate billions in additional corporate tax revenue, fund pension plans, raise wages, create jobs, invest in new plants and equipment, and benefit shareholders. Those against argue there was no evidence that the 2004 repatriation legislation increased U.S. investment or jobs. Currently, there is over $1 trillion earned by American businesses, which has been taxed once, sitting overseas. Regardless of which side of the argument one sides with there is no doubt about the potential benefits to both the company and shareholders. Some companies we have written about that would benefit from a tax amnesty are MSFT, AAPL and INTC.

According to recent SEC filings the combined amount of cash and investments held
by foreign subsidiaries for Apple (AAPL) and Microsoft (MSFT) exceeded $90 billion as of
the quarter ending June 30. This amount could exceed $100 billion by the end of
the next quarter.  Read the full article at SA


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