Microsoft admits to dodging $29B in taxes. Yes, billion with a B.

[Viper1]

Baalzamon said:

Viper1 said:

But they use that money in the US.

You basically just stated a US company could have 100% of sales overseas and all profits would be untaxed.  Do you think that company and their employees would only spend the money overseas?

A) No...they don't use that money in the US. That money stays abroad, and is often used for foreign acquisitions or sits on the balance sheet. This is why companies want the US to do a 1 time repatriation tax holiday. It would allow them to bring over $1 trillion of cash back to the United States that currently cannot be spent here.

B) If your argument that it should be taxed is that the money is used in the US, then next time you go to another country, you should also pay that countries income tax, because you are using your money in their country. See how much sense that makes?

C) If a US company has 100% of sales overseas, it will still be taxed in the country where the money was made (as it should be). So no, it isn't untaxed.

A.  Actually, it does get used.  Indirectly.  They can use it for collateral.  This reduces the cost of borrowing and/or opens new lines of credit.  And offshore accounts doesn't mean it is being spent in the country the money was earned in.  I doubt that they had $93 in revenue from the Cayman Islands or Switzerland.  And it's probably drawing a nice interst too.

B. Again, they aren't keeping and or spending the money in the country it was earned in.  It's in a bank, drawing interest.

C. So if they bring money back into the US...no taxes on it?