America's companies are hoarding $1.4 trillion in cash

a reply to: CB328

So what? It's their money. You don't like saving* your cash?

"... it shows a reluctance to spend ... which signals pessimism and that they aren't seeing enough growth opportunities to invest in. "

The point of business is to make money, not spend it as soon as you have it. Rich people are rich because they know how to manage cash.

We now return to the hyper-taxation circle fest already in progress

* "hoarding" = 'saving' to money-savvy people.

originally posted by: AlaskanDad

And this is what happens when you have the worlds biggest corporate welfare system:

I am against all corporate subsidies and bailouts. The government should not by in the business of picking winners and losers.

a reply to: AugustusMasonicus

if we are not competitive somewhere else gets the money.

Apple, Nike- all those companies practically run Dickensian workshops, paying a pittance while earning a payload.

Why? because workers rights are a fantasy in many countries and megacorps do not want to pay extra wages.Yet a quarterly profit of a few billion dollars with change is unimaginable to someone who earns a hundred rupees per annum.

a reply to: AugustusMasonicus

Indeed - tax incentives have been a key determination in shifting businesses offshore and I would add that those businesses that rely on a method that requires a significant human input to achieve their final product are now realizing that in order to survive, the payroll overheads are the difference between success and bankruptcy.

originally posted by: Thecakeisalie

Why? because workers rights are a fantasy in many countries and megacorps do not want to pay extra wages.Yet a quarterly profit of a few billion dollars with change is unimaginable to someone who earns a hundred rupees per annum.

When people stop buying Nike sneakers and using Apple iPhones they will stop selling them. Last time I looked there were lines out the door for the new Jordan's and iPhone 6's.

originally posted by: Sublimecraft
Indeed - tax incentives have been a key determination in shifting businesses offshore...

So why are people surprised to see companies with huge overseas asset ledgers?

originally posted by: Bluntone22
Hey lets confiscate the money and pay on the national debt!
17 trillion minus 1.4 trillion leaves 15.6 trillion.....
Hmm. Still not enough.

Check Out Who's Hiding $32 Trillion in Offshore Accounts

More than two million emails that shed light on the biggest tax dodge in history – trillions of dollars hidden in offshore accounts – have been uncovered by the British newspaper The Guardian and the Washington, D.C.-based International Consortium of Investigative Journalists (ICIJ).

Some $32 trillion has been hidden in small island banking hubs which host a bevy of trust funds, shell corporations and other tax havens, the Tax Justice Network estimates.

source

originally posted by: AugustusMasonicus

originally posted by: introvert
a
I can agree. But can you agree that our corporate infrastructure is beyond what should be acceptable in a country in which the individual should take precedent over the corporation? That is not what we have today. The corporation owns the government and the government serves them, not the people.

It's out of control and while I believe there is much room for compromise, it's evident that something is wrong in this country regarding corporations.

I would agree if you included all special interest groups as well. Lobbying is the problem, for people like the Original Poster to be surprised that groups are taking advantage of loopholes is rather naïve in my opinion.

On that, we agree.

originally posted by: wantsome

originally posted by: AugustusMasonicus
a reply to: CB328

This is what happens when you have the second highest corporate tax rate in the world.

Blah blah blah poor corporations. We also have the highest cost of living in the world. Been hearing for years that we must cut taxes for the job makers. All they do with it is buy more yachts. It sure don't end up in the citizens hands. Wages have been stagnant for 20 years.

And who builds the yachts? They don't build themselves. They're built in shipyards by people who make relatively high wages. Money spent is money into the economy. And "hoarded money" isn't in a pillowcase. It's in a bank drawing a pathetically low rate of interest and available for loans, also at historically low rates, thus keeping the housing and automotive markets rolling along. There's no such thing as "hoarded money" unless you've locked it in a safe.

a reply to: AugustusMasonicus

Because no true blooded American/Australian/Irish/et al wants to admit that "made in China" is a more astute business-savvy solution than "made in America/Australia/Ireland/et al"

originally posted by: Sublimecraft
Because no true blooded American/Australian/Irish/et al wants to admit that "made in China" is a more astute business-savvy solution than "made in America/Australia/Ireland/et al"

The article is not about manufacturing costs, it was about where their profits are kept and they are not kept in China.

originally posted by: AugustusMasonicus
a reply to: CB328

This is what happens when you have the second highest corporate tax rate in the world.

I keep hearing this used...so what if we have the corp. tax rate so high...go to the countries that have a lot lower tax rates, and their either 3rd world or have a higher tax on the wealthy....let's also remember, that Exxon paid no federal income tax last year, and on top of that got a 30 million dollar refund....they are doing just fine...
news.exxonmobil.com...

Sorry but some of these companies like Exxon have 5 billion in cash reserves is not hoarding. That's really a small amount for a company with their revenue. Especially when you consider that they pay taxes all over the world not just in the us.

originally posted by: jimmyx

I keep hearing this used...so what if we have the corp. tax rate so high...go to the countries that have a lot lower tax rates...

That is exactly what they are doing and why you see the money in the Original Post accumulating there instead of here.

...and their either 3rd world or have a higher tax on the wealthy...

The Caymans (and other Caribbean islands) are developing nations?

I don't know why I have to keep saying this.

But multinationals make their money from other places in the US, and as such isn UNTOUCHABLE.

For those who do not get that it's bascially saying.

New York has the Right to the money companies make in California.

THEY DON'T.

Ponder it.

a reply to: neo96

They also pay taxes in those countries.
People must think British petroleum only pays taxes in Britain.

originally posted by: AugustusMasonicus
It is a zero sum game, if we are not competitive somewhere else gets the money.

Corporations are legally bound to act like sociopaths in this game - they must seek profit

Profit requires more money coming in than going out. This can be achieved by increasing revenue and/or decreasing costs.

A ruthless company may lower its costs in morally objectionable ways (see: sweatshops).
A different company might spend money to lobby government to get tax breaks.
Another company might increase its revenue through innovative products.
Any way you look at it, profit means taking more than your share of output.

Profit-seeking requires continual growth to sustain.

Yet, we know from basic biological research that infinite growth is impossible. We are near or over the carrying capacity of the Earth, so where is our growth to come from?

What does that say about profit-seeking?

originally posted by: Greven

Yet, we know from basic biological research that infinite growth is impossible. We are near or over the carrying capacity of the Earth, so where is our growth to come from?

What does this have to do with the Original Post?

What does that say about profit-seeking?

Do you work for free or do you produce everything you require yourself?

originally posted by: AugustusMasonicus
What does this have to do with the Original Post?

Do you work for free or do you produce everything you require yourself?

Plenty.

What does what I do have to do with my argument? Attack the argument, not the person.

originally posted by: Greven

Plenty.

Really? The whole overpopulation trope is related to corporate profits?

What does what I do have to do with my argument?

Because if you work you are profiting.