I hope they succeed in this effort. Why encourage overseas subsidiaries?
Obama’s budget outline released in February made reference to proposals to change the tax treatment of U.S. firms with overseas operations and measures to crack down on international tax evasion.
During his campaign last year, Obama spoke out against provisions in the tax code that allow U.S. firms with overseas operations to defer payment of taxes on corporate profits if they plowed the money back into their foreign subsidiaries.
Obama said this gave companies incentives to ship jobs overseas.