3 ms·
Well historically when a corporation couldn't reinvest its capital for an above market rate of return, it would either buy back shares or issues dividends so ow
by jdross 9y ago
Well historically when a corporation couldn't reinvest its capital for an above market rate of return, it would either buy back shares or issues dividends so owners/shareholders can reinvest for higher return.
Hoarding this much cash is historically unprecedented, largely because it's mostly offshore for tech companies and repatriating it would cost many billions in taxes.
- lucretian 9y agomaybe they should repatriate it and pay their damn taxes.
- Veratyr 9y agoWhy? Why should they pay US tax on money earned abroad? They've paid tax to the local government where sales were made, why does the US get a cut too?
- B1FF_PSUVM 9y agoEnforcement. Getting billions out of intellectual property works better if you have a couple dozen aircraft carriers, etc. to back up the diplomats and trade treaties. "You can get much farther with a kind word and a gun than you can with a kind word alone."
- ec109685 9y agoWhy shouldn’t they? Google pays sales tax here too and yet have a corporate income tax given they are based in the US.
- Veratyr 9y agoMy point is why are they subject to a corporate income tax on income earned and already taxed abroad? The US government hasn't supported that income.
- skj 9y agoWithout arguing for or against repatriation taxes, I don't think it is true that "The US government hasn't supported that income."