>>... pretty soon, you're talking real money.
>>
>>http://www.businessinsider.com/r-obama-proposes-14-percent-tax-on-us-companies-untaxed-foreign-earnings-2015-2
>>
>>A 14% ( $280B ) grab now (with no foreign tax-paid credits), then 19% henceforth on foreign earnings (less "credits" for foreign tax paid, adjustable by fiat).
>>
>>A very clever move, whether one agrees with it or not:
>>
>>- Helps balance the budget with immediate cash injection (yum!)
>>
>>- Could very well hurt employment at overseas subsidiaries but won't hurt Americans. Might even boost American employment a bit; if the only reason American companies have foreign subsidiaries is for tax purposes, and that advantage goes away, jobs could be repatriated
>>
>>- Makes US more "competitive" from a taxation standpoint without having to lower rates
>
>As long as those US companies stay in the US - yes, seems logical.
>Dirty mind quickly conjures schemes like founding overseas company, "Buying" US company with own (foreign) shares and setting up foreign parentcompany-owned daugther companies to keep foreign earnings untaxed by the US. Don't see how the US could try to tax such a structure within current tax logic.

With that much money at stake it's guaranteed the best financial/legal minds on the planet will do their best to find workarounds. And not just the companies with overseas holdings, but the tax havens that are benefiting from the current arrangement.