Frustrated with U.S. tax laws, many of the biggest names in the tech sector have been hoarding cash in countries that have favorable tax rules. Apple, Google and Microsoft are among a group of eight tech companies that are estimated to be storing as much as $420 billion offshore – one-fifth of the estimated $2.1 trillion held in other countries.
Many of the companies stashing cash overseas are declaring increased profits in foreign countries. Apple, Google, and Microsoft have been among those top tech companies declaring increased profits outside the U.S. Ireland and Luxembourg are some of the top choices for companies seeking low taxes.
President Obama has moved to bring some of that money back to the U.S., proposing a 14-percent tax on money that U.S. companies store overseas (as opposed to the current rules, which make overseas money largely untaxable). Obama also suggested a 19 percent minimum tax, but any changes will ultimately come from Congress.