United States taxpayers make large interest payments to the top four technology firms for the $163 billion in US government debt the companies own and shelter in tax-free offshore accounts.
United States taxpayers make large interest payments to the top four technology firms for the $163 billion in US government debt the companies own and shelter in tax-free offshore accounts.
Apple, Cisco Systems, Google, and Microsoft legally hold $124 billion in US Treasury securities and $39 billion in US government agency debt in accounts overseas, allowing them to avoid the 35 percent (maximum) corporate tax rate in the United States, according to Securities & Exchange Commission reports.
Together, the companies would be the 14th biggest overseas holder of Treasury securities, just ahead of countries like Norway, Singapore, and India.
“If a US multinational puts its offshore cash into a US bank and uses the money to buy US treasuries, stocks and bonds, those funds ought to be treated as having been repatriated and subject to US tax,” Sen. Carl Levin, chair of the Senate permanent subcommittee on investigations told the Bureau of Investigative Journalism.
Combined, the four top technology giants have $255 billion in “cash, cash equivalents, and marketable securities…in their foreign subsidiaries,” the Bureau of Investigative Journalism reported.
If that total amount was held onshore, making it subject to being taxed by the US government, it would yield $89 billion – or 17 percent of America’s projected $514 billion budget deficit this year.
Overall, the companies hold $333 billion in domestic and foreign accounts, making them the most lucrative American firms outside the financial sector.
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