[cjensen]

Yes, Apple and other international companies have a real point. If they sell stuff in Portugal, for example, the pay taxes on the item to Portugal plus make some profit. If they then transfer the profit to the US, the US would like to tax the company a second time.

It's kind of questionable that transferring properly earned and taxed funds from another country into the US makes the US suddenly want to tax the funds.

This also has consequences. If the best place for Apple to invest some of its money is the US, but the tax makes it less profitable, Apple may choose to invest that money in a different country instead. So the tax code encourages US countries to invest overseas profits into overseas investments.

[perseusprime11]

They can claim a tax deduction of all the taxes paid globally on their U.S tax returns.

[jomamaxx]

"They can claim a tax deduction of all the taxes paid globally on their U.S tax returns."

No - I don't believe this is true in the sense you mean it.

Effectively for corp. taxes - US companies are indeed 'double taxed'.

This means US companies are incented to leave zillions overseas and not bring it back to America.

The US tax code basically ignores the fact that the rest of the world exists. Most countries tax codes have to deal with the fact there is such a thing as 'international markets'.

The terrible thing is - there is any easy fix. Any President could pull it off I think.

If the US got rid of double taxation, and reduced the corporate tax rate - I think most business leaders would accept the closing of all the crazy loopholes.

[perseusprime11]

Are you sure about this? I am pretty sure you can claim the tax paid to other countries on your taxes. Can a CFO here chime in?