The tax dodge using foreign-source income also favours companies that do business in high-tax countries: it is not obvious that the American government should support the treasuries of those countries (or, indeed, those of the handful of Caribbean islands where 95% of the sham firms are located).

ECONOMIST: Economics focus

Today, U.S. tax on most business income derived by foreign subsidiaries is not subject to current U.S. taxation.

FORBES: Territorial Tax Proposal Provides a Look into the Future of Corporate Taxation