These U.S. Companies Hoard Piles of Cash Abroad

March 30th, 2015
in News, econ_news, syndication

by Felix Richter,

According to a recent J.P. Morgan report, U.S. companies hold a combined total of more than $2 trillion in cash abroad.

Follow up:

Among all S&P 500 companies, Apple has parked the largest amount of cash outside the U.S. by quite a margin. The iPhone maker hoards $158 billion (89 percent of its total cash) overseas. That’s almost twice as much as second-ranked Microsoft ($82.1b) and 2.5 times the total of General Electric, which is ranked third with foreign cash holdings of $62.4 billion.

Under current law, U.S. multinationals have little incentive to bring home the cash they hoard overseas, because they would have to pay 35 percent corporate income tax once they repatriate their foreign earnings. Earlier this year, two senators proposed a repatriation tax holiday, which would enable companies to return money to the United States paying just 6.5 percent tax, not 35 percent. The bipartisan proposal suggests the proceeds could help finance the Highway Trust Fund which is expected to run dry in May. It would also limit the use of the repatriated funds, prohibiting their use for stock buybacks or executive compensation.

Although considered unlikely, it wouldn’t be the first time Congress passed a tax holiday for foreign earnings. In 2004, companies paid just 5.25 percent taxes on repatriated cash. However, a congressional subcommittee later found that the measure hadn’t been effective: many of the companies that profited most went on to cut jobs and reduce R&D spending in subsequent years.

This chart ranks the S&P 500 companies with the largest amounts of cash held abroad.

Infographic: These U.S. Companies Hoard Piles of Cash Abroad | Statista
You will find more statistics at Statista


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved