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> The US tax code heavily punishes companies that hold cash in a variety of ways. It would be nice if you provided an example. What, exactly, is a tax penalty
by morgante 10y ago
> The US tax code heavily punishes companies that hold cash in a variety of ways.
It would be nice if you provided an example. What, exactly, is a tax penalty which applies to holding cash?
- kazinator 10y agoI would guess: in a "corporate wellfare" state, the lack of some tax break is regarded as a penalty. I.e. if there exists is a portfolio of available instruments, with tax breaks attached, into which the cash could be poured, and you don't do that, then you're penalized.
- WildUtah 10y agoRight there in the next paragraph it says: the business interest loophole and the accumulated earnings tax.