Like other U.S. companies, Apple pays an extreme tax penalty for bringing its foreign profits home to invest in the U.S. This is due both to the punitive U.S. tax rate and the fact that the U.S. is virtually alone in refusing to embrace a territorial taxsystem that applies corporateincome taxes only in the jurisdiction where the money is earned.
Romney would shift thecorporatetax to a territorial system in which domestic firms owe no U.S. incometax on their overseas sales but foreign firms pay U.S. tax on money they make here.