My point wasn't that Google should pay US tax on its foreign income. On the contrary Google's foreign income should be taxed in the countries where it's earned.

My point wasn't that Google should pay US tax on its foreign income. On the contrary Google's foreign income should be taxed in the countries where it's earned. Right now, though, it's by-and-large taxed nowhere: http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-revenue-lost-to-tax-loopholes.html http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-sho... Now, I doubt that it's the government of Bermuda or the mighty army of Ireland or the important trade with Isle of Man that scares off the US government from closing those loopholes to American tech companies. Obviously, the US government uses its influence in such way that international tax law allows American tech companies to transfer their international income to tax havens. After all, the US government could quickly use its influence to close those gaps if it felt any real need for it. Ergo - another subsidy.