Apple Inc. (NASDAQ: AAPL) continues to be the American company with most money “parked” offshore. The amount has hit $181 billion. The fact that the sum is so high raises the question of whether it is ethical, legal and sensible to keep so much money outside the United States.
The opposing sides of the debate are:
- Apple should pay taxes on the cash. In total, the 50 companies with the money parked offshore have $1.3 trillion there, according to a widely quoted survey by OxFam.
- Large corporations use the tax code fairly and parking the money is good for investors.
Critics of the “tax big companies” say the viewpoint of OxFam is biased since its goal is to help the impoverished worldwide. The companies are biased in the defense of their practice because they want to avoid taxes. The 50 corporations have the most important advantage. The current tax code is squarely and unambiguously on their side. OxFam admits as much. Robbie Silverman, senior tax advisor at Oxfam, said:
Yet again we have evidence of a massive systematic abuse of the global tax system. We can’t go on with a situation where the rich and powerful are not paying their fair share of tax, leaving the rest of us to foot the bill. Governments across the globe must come together now to end the era of tax havens.
The word “abuse” may be overstated. The tax system is as it is until it is changed.
Including Apple, seven American companies have over $50 billion parked offshore. The others are as follows:
- General Electric Co. (NYSE: GE), $119 billion
- Microsoft Corp. (NASDAQ: MSFT), $108 billion
- Pfizer Inc. (NYSE: PFE), $74 billion
- International Business Machines Corp. (NYSE: IBM), $61 billion
- Merck & Co. Inc. (NYSE: MRK), $60 billion
- Johnson & Johnson (NYSE: JNJ), $53 billion
- Cisco Systems Inc. (NASDAQ: CSCO), $53 billion
As for the companies, park the money while it is yours to park. The parking may not last forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
