
Microsoft issues debt to finance LinkedIn purchase - hobaak
http://www.bloomberg.com/news/articles/2016-06-13/why-microsoft-with-100-billion-is-borrowing-to-buy-linkedin
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RP_Joe
>Microsoft will avoid having to pay a 35 percent tax rate to repatriate cash
from overseas accounts. While it’s true that Microsoft has more than $100
billion in cash and cash equivalents, most of it is parked offshore. Bringing
home any of it to fund the proposed $26.2 billion purchase, announced on
Monday, would generate a tax bill.

Of course if an individual or small business tried that, They would be in
jail.

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dv_dt
In general, I think companies are waiting for a tax-holiday on repatriating
cash as has happened from time-to-time in the past. It would be interesting if
tax laws were amended to allow tax-free repatriation of cash for the purpose
of buying US-based companies. The US would lose out on collecting of the tax
revenue (not that it's getting that revenue now), but it would allow a path to
repatriate the cash in an instance when the cash injection might be inherently
put back into circulation because of use in the transaction.

