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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (861)	3/14/2014 6:39:05 AM
From: Jerome	Read Replies (1) \| Respond to of 26595

Hey Bob... IT is parked out side the US to prevent paying the 35% tax (highest around the globe) and safe as the full faith and trust of the US government treasuries As far as I know no company pays a 35% tax rate unless they have the stupidest accountants .in the world. In a previous post I showed where many large companies have 0% for an effective tax rate Message 29438736 I have also seen articles where Apple and Cisco assign huge profits to countries where they have very little in sales or employees (Isle of Wright and Isle of Jersey, for example). With or without a tax on profits returned to the US, I have seen no evidence that repatriated cash creates jobs in the US. If your have some evidence to the contrary post it here. Look at Kirk's statement about funds being parked in the UK. (and US Treasuries being purchased with them). Why aren't these companies using that cash to expand in the UK? The answer to me is obvious. Companies like Apple and Cisco have tons of cash here in the US and abroad. They also have very few ideas how to use it wisely. Do the math.....lets say that Apple has ten billion (for example) parked in the UK or Ireland and that cash is used to purchased US treasuries. Those treasuries will pay between 1&2% interest. (at most).Now if you are Apple or Cisco and you have billions earning 2% interest......this becomes a drag on your bottom line. What you have now is a huge part of your asset base doing nothing but making time.