Reply #5: Its all moot - Most folks don't understand the Bush Tax Cuts for Corps

[FreakinDJ]

they don't get taxed at all on foreign income until they bring it back into the United States. Which forces them to NEVER bring it back into the USA even if the profits are earned here in the United States.

And this applies to a Corp's subsidiaries.

So parent Corp A buys $100 dollars worth of product from foreign subsidiary Corp B. Sells the $100 worth of product for $125.

Parent Corp A must pay taxes on the $25 dollars profit

Subsidiary Corp B (Parent Corp A's China facilities) pays Foreign taxes (China Value Added Tax 25%) which is passed onto the American consumer as part of the $100 product cost, but still makes $35 profit.

Under those guide lines the incentive is clear to invest overseas. Even when the R&D is performed here in the United States to maximize the write offs for Parent Corp A. Not only does the American consumer pay a disproportionate amount of China's Tax revenue, they are further penalized with subsidizing Oil cost in India and China that further drives up the cost of fuel here in America and slows our economy.