2. S
• Nearly ¾ of Fortune 500 companies
hold profits offshore in countries with
lower tax rates
• Bermuda
• Ireland
• Netherlands
• Total of $2.1 trillion in profits
• Result in $620 billion in US taxes if the
money was brought back into the US
• Corporate tax rate can be as low as 6%
overseas compared to a 35% corporate
tax rate in the US
3. S
• Apple holds the most offshore, with $181.1
billion in profits
• GE has $119 billion
• Microsoft has $108.3 billion
• "Congress can and should take strong
action to prevent corporations from using
offshore tax havens, which in turn would
restore basic fairness to the tax system,
reduce the deficit and improve the
functioning of markets."
4. Questions
S Should the US lower the tax rate on foreign funds
brought in by domestic corporations in the hopes of
reducing the amount of profits being held offshore?
S Does the US have the right to tax the money even though
the profits were made in foreign countries?
S Is it ethical for corporations to sit on that much cash
without reinvesting it in employees, the company,
shareholders, or the community? (Friedman vs.
Freeman)
