Obama would continue to impose U.S. tax on foreign earnings of domestic firms, and make it tougher for those companies to avoid tax by keeping their profits overseas.
FORBES: The 10 Biggest Differences Between The Romney And Obama Tax Plans
2.
This all works because the U.S. allows companies to defer U.S. tax on foreign earnings until those profits are returned to the U.S. And many multinationals never bring the money home.
FORBES: A New Way To Address The International Tax Mess For U.S. Companies
3.
The net earnings of the subsidiary are profitsand not salary and won't get hit with the extra 2.9% tax.