From the The Economic Populist:
Uncle Sam Helps Offshore Outsource Jobs
The tax code gives a permanent tax break to corporations if they invest their offshore profits in foreign countries. I kid you not.
Another incentive to shift or keep profits offshore is provided by an accounting standard known as APB 23, recently renamed ASC 740-30-25.
APB 23 permits U.S. multinationals to defer recognition of tax liability on foreign earnings for financial reporting purposes so that earnings are not reduced by the tax liability if they affirmatively assert that their foreign earnings are permanently or indefinitely reinvested. In 2011, more than 1,000 U.S. multinationals made such an assertion in their SEC filings, reporting in total that more than $1.5 trillion is or is intended to be reinvested offshore.
Gets worse than that. Of these funds declared permanently reinvested offshore, a study found that 46% of it was sitting in U.S. bank accounts, buying up stocks in other U.S. companies or U.S. treasuries.
If Mr Business has “no idea” what the President asserted then he is lying. What a surprise.