Blood boil time...See here why all those Corporate Profits you hear about that are "hoarded overseas" are not really overseas but in use HERE in the US of A. They just managed to avoid the taxman in doing so... Read it and weep...

Here is an excerpt from this brief "Are U.S. Firms Really Holding Too Much Cash?" (Via Tim Taylor) that tells part of the story regarding corporate "hoarding" of profits overseas to avoid US taxes (bold and underlined I did for emphasis):

"...It is also important to recognize that the “overseas” money owned by foreign subsidiaries need not be invested abroad, but instead can be held at U.S. banks, in U.S. dollars, or invested in U.S. securities.  

For example, according to SEC filings, $58 billion of Microsoft’s total cash holding of $66.6 billion is held by foreign subsidiaries. Surprisingly, about 93 percent of Microsoft’s cash held by foreign subsidiaries in 2012 was invested in U.S. government bonds, corporate bonds, and mortgage-based securities. 

The assets of Apple Operations International, Apple’s Irish subsidiary, are managed in Reno, Nevada, by employees at one of its wholly owned subsidiaries, Braeburn Capital, according to a Senate report, with the funds held in bank accounts in New York...."

 Don't hear much about this do, ya?  Corporate profits are really only keep outside the US  in accounting terms, not in practice.  They make their way back to the US to be used domestically in a whole host of ways.

Think about this.  Microsoft (and most other multinationals) earns profits in overseas subsidiaries, keep them there to AVOID US taxes, but are able to invest those profits in US government bonds (debt) which PAY Microsoft interest (out of general tax revenues).  The interest is paid to the foreign subsidiary of the US company.  Not sure if THAT is taxed either...

The briefing paper cited above is a GREAT primer on the sheltering of profits by US multinationals and how the issue is more nuanced and complex than presented in the media.

It also has a link to another longer and more detailed paper on the subject. Found HERE.

Both are worth the time to read if you are really interested in the topic.