Companies that would bring foreign cash back to the U.S. at a reduced tax rate likely would unleash some $250 billion back into the economy and markets, according to a Goldman Sachs analysis.
That infusion would be split, the firm's strategists said, between investors and the broader economy, as companies both would return cash to shareholders through dividends and buybacks and put the money to work in the form of capital expenditures, research and development and M&A activity.
Benefits would be skewed toward information technology and health-care companies, which by far hold the most overseas cash in total and as a percentage of market cap. Apple, for instance, has $216 billion stashed abroad, which is about 25 percent of its cap, while Cisco has $68 billion, or 37 percent of its cap, the highest level of those Goldman considers most likely to gain from repatriation.
The analysis broke down companies with large amounts of money stored overseas in total and as compared to market caps. Companies with at least 20 percent of their market cap in foreign cash: