The U.S. taxes its multinational on profits earned anywhere around the globe. By contrast, almost every other government exempts foreign profits from taxation at home. Because of these tax rules, U.S.-based corporations are hoarding more than $2trillion in earnings in their foreign subsidiaries. These cash hoards have roughly doubled in the past six years, according to a study of corporate filings by Citizens for Tax Justice.
With US corporations earning huge profits globally, international investment opportunities begin to make more sense. Investments in assets, commodities and other foreign currencies take the place of repatriating the US dollar. If large multinational corporations are investing outside the United States, isn't this something that individual US investors ought to consider as well?