We hear a lot about “offshore” funds being held by US companies in order to avoid US corporate taxes. Indeed, these companies are estimated to be saving $620 billion in taxes on $2.1 trillion in offshore assets not repatriated to US soil. (Footnote 1)
Again, these numbers boggle the minds of US citizens who can barely balance their checkbooks – if they are lucky enough under the Obama “recovery” to have a checking account. (Even those with a checking account hardly ever balance it – Footnote 2).
When we compare these offshore assets to the Gross Domestic Products (GDPs) of countries you all know, then it is truly mind-boggling.
And please note that the graph only includes the 50 largest US companies holding assets abroad. Another $720 billion is being held offshore by the remaining smaller US companies. So, all those nice “socialist” countries that Bernie is always citing as the panacea for human existence – well, check out their GDPs compared to US companies “spare cash!”
Obama’s 2016 budget outlines plans to raise $238 billion by imposing a one-off, 14% tax on about $2 trillion in earnings that U.S. companies have accumulated in foreign countries. Good luck with that Mr. President!