Wednesday, December 5, 2012

Top U.S. Firms keep their cash abroad because it's SMART BUSINESS and MORE PROFITABLE

This isn't Rocket Science...COMMON BUSINESS SENSE dictates you keep your money where that Gov't lets you keep the biggest chuck:
Emerson Electric Co. EMR -0.26% has $2 billion of cash in the bank. But this year it had to borrow money in the U.S. to help buy back shares, distribute dividends and even pay its taxes. 
That's because "substantially all" of Emerson's cash is in Europe and Asia, according to the company's filings with securities regulators. The maker of power-plant and data-center equipment could always bring that cash back home, but it would be taxed at the 35% rate on corporate profits minus whatever tax it has already paid overseas. 
As a result, Emerson says, it brings its foreign cash holdings back to the U.S. only if that can be "accomplished tax efficiently." In its most recent fiscal year, that meant bringing back just $500 million, then using debt to cover other obligations. 
At a time when American companies hold near record amounts of cash, many are surprisingly cash-poor at home. That doesn't mean they could suddenly run out of money to pay their bills. But it does mean there could be unseen limits on their ability to pay dividends and buy back shares.
Read the rest of the article HERE.

EXPECT more of the same over the next 4 years until the U.S. becomes more business friendly once again and it's MORE PROFITABLE to keep their money here rather than there.

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3 comments:

Anonymous said...

This is only the beginning.

There is no incentive to do business here with Obama's War on Profits.

Anonymous said...

yes we get what we deserve, it is the benefit from voted for revenge instead vote for love of country,let's Obama do what he want by the American (Obama voter)voter to change to Obama father dream and change the United States of America to the States of Welfatre.

CRUZ COUNTRY said...

You ain't seen nothin' yet.

Wait till the debt bomb explodes, the dollar crashes & hyperinflation leads to wage & price controls which leads to rationing.

Not a pretty picture. They'll be rioting in the streets. It's going to happen a lot sooner than people think. It always does.