Question: Microsoft notes that it would be taxed $9.2 billion, or 31 percent of its $29.5 billion in cash holdings, if it repatriated its foreign earnings

Microsoft notes that it would be taxed $9.2 billion, or 31 percent of its $29.5 billion in cash holdings, if it repatriated its foreign earnings to the United States. The U.S. corporate tax rate is currently around 35 percent. Explain the discrepancy.

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