[jyl]

So US tax policy incents companies to keep jobs in the US (on shore)? Interesting.

The tax strategy actually has more to do with transfer pricing. Overseas subsidiary spends $1.00 to build the widget and transfers it to the onshore company at $2.00, the onshore company sells it for $2.50 and spends $0.25 on G&A and R&D, that is $1.00 of profit offshore and $0.25 onshore. If your offshore operations are in a low tax jurisdiction, you have successfully lowered your tax bill.

The number of low tax jurisdictions where major operations can be carried out is, however, shrinking.