U.S. Corporations’ Cash Stash

The title of this article is“Why Investors Can’t Get More Cash Out of U.S. Companies” but it might as well be “Why U.S. Corporations Hold So Much Cash”, or “Politicians Strike Again”.  I imagine the author chose his title because he is writing for an investing column.

U.S. companies are taxed at up to 35% when they bring home the earnings generated through the operations of their overseas subsidiaries. They get a credit for any taxes paid to foreign governments—but, since the corporate-tax rate in the U.S. is one of the world’s highest, most companies are in no rush to bring the money back onshore. By keeping those earnings abroad, U.S. companies can indefinitely defer their day of reckoning with the IRS.

It is time to free the private sector from the meddling of the public sector.  If you want jobs, higher incomes, higher valued savings, this is what must be done.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s