Just five US companies, Apple, Microsoft, Google, Pfizer and Cisco – all of whom have operations in Ireland, are sitting on nearly half a trillion dollars in cash resources according to Moody’s Investor Services.
Apple owns 10 percent of these funds, and technology firms account for 40 percent of the cash pile - while the next biggest sector is pharmaceuticals.
These five are holding about a quarter of all US corporate cash reserves of $1.7tn, two thirds of which is estimated to be held outside the US
Low borrowing costs in the US have allowed companies not to dip into their foreign cash holdings which would be subject to relatively higher US corporate tax rates if they were repatriated as profits
"There has been little progress toward corporate tax reform that would incentivise US companies to permanently repatriate funds held overseas," said Richard Lane of Moody's.
US President Barak Obama has proposed legislation to reduce US corporate tax rates below 20 percent to encourage repatriation of overseas US companies’ cash and profits and a tax of 14 percent on overseas holdings if they are not brought home, but this has been delayed in Congress.
