Microsoft has $51 billion in cash in foreign banks (mostly in Ireland) and that’s where it is going to stay for the foreseeable future. The money was made overseas and it will not return to the United States because we have the highest corporate tax rate (35%) in the world.

Microsoft and other tech companies are calling for a repatriation holiday, where the U.S. government would temporarily suspend taxes on bringing cash back from overseas. They claim that this would encourage them to invest more money at home, although the last time the government allowed this kind of tax holiday, in 2004, companies returned 92% of it to investors in the form of stock buybacks and dividend payments

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