Apple, Microsoft Hoard Cash – US Taxpayers Pay the Bill

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https://www.commondreams.org/headline/2014/03/18


Microsoft, founded by Bill Gates, lends $65bn to the US government (Image: Shutterstock)

In recent years, America’s technology giants have increased profits to epic levels. So you’d think this good fortune would prove a boon to the fragile American economy.

In theory, a river of tax dollars from America’s cash-rich technology firms ought to contribute towards a significant reduction of the US $17.5 trillion debt mountain.

Only it hasn’t quite worked out that way.

Today, the 1,067 biggest non-financial firms in the United States, according to Moody’s the credit rating agency, have amassed cash and liquid investments totalling $1.48 trillion – a sum equivalent to the entireeconomy of Spain.

Of this $1.48tn corporate cash mountain, 22% is held by just four companies. Combined; Apple, Microsoft, Google and Cisco Systems retain $331bn in cash, with $255bn held in foreign subsidiaries sheltered from US tax.

Cash mountains

But instead of this cash sitting idly in a Bermudan bank vault, new research by the Bureau shows that a substantial amount of the tech giants’ offshore cash is in fact lent to the US government.