Republicans block bill to keep jobs from going overseas.

[Dgov]

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.

So the only reason there is a "Tax cuts for companies that send jobs overseas" is because Congress decided to pass a law to take precedent over another law rather than to actually fix the first law.  If this was a legitimate tax break for outsourcing, the Democrats would have tried to repeal it in January 2009 when they could have easily done so rather than 5 weeks from an important midterm election, where they can score political points by holding US exports hostage.