3: Role of Taxation on Investment and Repatriation Decisions.

The article explores the role of taxation on foreign investments and repatriation decisions of multinational corporations in the U.S. It is argued that the current international tax system of the country negatively affects the competitiveness of firms and allows them to defer tax on earnings of foreign affiliates until the earnings are repatriated to the country. The impacts of the U.S. American Jobs Creation Act of 2004 and foreign tax credit on repatriations are also discussed.