> Because they'd have to pay taxes if they use the foreign reserves?
Yep.
Apple can borrow at somewhere near 2.3%[1] on the public debt markets. They have billions overseas, but if they bring it back to the US, they'd have to pay corporate income tax on it (35%).
They're just biding their time until the Chamber of Commerce lobbyists gain enough influence to get congress to pass an overseas tax holiday to repatriate the money at 15% or 20%. To this end, expect a huge PR onslaught near election time about how much economic stimulus would be provided if we changed the rules about taxes just this once (note: happens every ~10 years).
Yep.
Apple can borrow at somewhere near 2.3%[1] on the public debt markets. They have billions overseas, but if they bring it back to the US, they'd have to pay corporate income tax on it (35%).
They're just biding their time until the Chamber of Commerce lobbyists gain enough influence to get congress to pass an overseas tax holiday to repatriate the money at 15% or 20%. To this end, expect a huge PR onslaught near election time about how much economic stimulus would be provided if we changed the rules about taxes just this once (note: happens every ~10 years).
[1] - http://quicktake.morningstar.com/StockNet/Bondsquote.aspx?ci...