The USA, much like many developed countries are facing tough public spending challenges. Expect there to be more than a little public outrage once this Forbes article starts doing the rounds. It appears that a loophole in the Inland Revenue Service code allows for a spot of tax avoidance when it comes to offshore earnings.
The loophole essentially allows tax liabilities on funds earned abroad to be written off so long as the funds are not repatriated into the country – a study by Leslie Robinson shows that a lot of top companies are exploiting the loophole including GE, Apple, Microsoft and Cisco.