I'm not sure why we wouldn't want foreign investors to invest here tax free. If a chinese investor can build a building in the US, that building still pays all of it's local and property taxes that should account for it's infrastructure cost. And if not, that's problem with those taxes, not the US corporate income tax.
The Chinese investor isn't a US citizen, doesn't get to vote, or benefit from government programs, isn't using US infrastructure, essentially is a cost-free source of capital. Why would we want them to invest in another country instead?
Yes, but that doesn't account for costs at the state or federal level - roads, ports, space programs, the military.
Even if the business doesn't benefit directly from that infrastructure, they benefit from being present in an economy that supports that infrastructure.
The US is a great place to invest because of that environment, seems reasonable that it has some level of cost.
Re:Apple's cash hoard swells to $246B
by MisterBastahrd on Saturday April 15, 2017 @06:47PM
(#14123260)
Because they shouldn't get to use our infrastructure in order to profit from their investment for free.
I agree that it's overcomplicated. Equally I'd argue eliminating corporate tax isn't the right mechanism either, as foreign shareholders could evade US taxes entirely. Which to an extent is an encouragement for investment, but equally it evades the infrastructure the US provides to businesses.
Right now we have the reverse of this - effectively double taxation on dividends for US shareholders (corporate tax and income tax). Dividend imputation is my preferred solution - However, I am biased seeing this in effect in Australia as franking credits.