Wow. I wonder if Republicans are ever going to fix this loophole that lets the Democrats claim that there are tax breaks for companies that work overseas.
For those of you who don't know how corporate taxes work for international companies, the usual method is that each company pays taxes for the country they're doing business in, so a Japanese company selling in France would pay France's Corporation tax and not Japan's.
However this is not the case in the US. The US corporate tax requires companies based in the US to pay the US corporate tax on all their income, along with the tax on foregin income that they have to pay to other countries. However, this was removed rather sloppily by passing a separate law stating that US corporations don't have to pay Corporate tax on Out-of-country income.
Thus incentivizing companies not to be based in the US, right?
