When I saw this, my reaction was “WHAT THE F-…oooh….okay….that makes sense.” :

Democrat Kerry Proposes Cut in Corporate Taxes

Presidential candidate John Kerry, eager to rebut charges that he is a tax-and-spend Democrat, on Friday proposed cutting the corporate tax rate and paying for it by eliminating incentives for U.S. companies to shift jobs overseas.
. . .
He pledged to end a tax provision that lets companies defer paying U.S. taxes on income earned by foreign subsidiaries and said he would use the $12 billion in annual savings to fully fund a 5 percent cut in corporate rates.

“Today we have a tax code that does more to reward companies for moving overseas than it does to reward them for creating jobs here in America,” Kerry said in a speech at Wayne State University.

The proposal, one piece of a broader job-creation package to be unveiled over the next few weeks, amounted to “a simple tax cut” for the 99 percent of American companies that did not send jobs overseas, according to Kerry economic adviser Gene Sperling.
. . .
Under existing law, U.S. companies do not have to pay taxes on foreign income until they bring it back to the United States. If they keep it abroad, they can avoid taxes entirely.

Kerry’s plan would tax profits from foreign subsidiaries just like domestic profits. It would still allow companies to defer the income earned by production overseas if they are serving foreign markets.

The more I think about it, the more I like this proposal a lot. By closing just one of the many loopholes that corporations use to avoid paying taxes, Kerry can reward those companies that aren’t traitors. If this works as planned, this could do a lot to ease the steady flow of jobs out of the United States. At the same time, this helps Kerry break away from the liberal stereotype of being “anti-business”. Let’s just hope that this is the tip of the iceberg.