Apple overseas hoarding is not a good sign for USD

By: Adam Button

Apple has announced plans to spend $45 billion on dividends and share repurchases but none of that money will come back to the US via overseas accounts. Apple holds two-thirds of its cash abroad but this is a clear signal that it has no intention of paying taxes related to repatriation. Apple officials say they have spoken to (lobbied) Congress and Obama's administration about taxation issues. Apple's cash hoard alone isn't enough to make a real difference for USD but it shows that companies are entrenched against the idea of paying to bring cash back to the US and also that they're not overly eager to invest in the USA. It's a lose-lose situation for USD. Either, the cash flows won't be coming or the tax rates will be dropped which hurts the  fiscal side. It's not a huge difference compared to overall tax dollars but it threatens to poison the debate as  policymakers prepare to make tough, post-election decisions on tax policy.