Congressional Budget Office, Options for Taxing U.S. Multinational Corporations:

In 2008, 12% of all federal revenues came from corporate
income taxes; about half was paid by multinational corporations
reporting income from foreign countries. How the federal government
taxes U.S. multinational corporations has consequences for the U.S.
economy overall as well as for the federal budget.

Tax polices influence businesses’ choices about how and where to
invest, particularly the profitability of locating in the United States
or abroad. The tax laws also can create opportunities for tax avoidance
by allowing multinational corporations to use accounting or other legal
strategies to report income and expenses for their U.S. and foreign
operations in ways that reduce their overall tax liability. U.S tax
revenues decline when firms move investments abroad or when they
strategically allocate income and expenses to avoid paying taxes here.

This study examines options for changing the way the United States
taxes multinational corporations or addressing particular concerns with
the current system of taxation. All of those options would affect
multinational corporations’ investment strategies and reporting of
income, as well as U.S. revenues from corporate income taxes.

(Hat Tip: Ed Kleinbard.)