. . . Are you talking about the U.S. corporate income tax? If so, foreign companies pay it for any activity in which they engage in the U.S. (unless there is a specific tax treaty).. . .
FYI, corporations foreign and domestic, have proved quite creative in avoiding corporate income taxes.
The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.
. . .
The GAO said corporations escaped paying federal income taxes for a variety of reasons including operating losses, tax credits and an ability to use transactions within the company to shift income to low tax countries.
. .
The study showed about 28 percent of large foreign corporations, those with more than $250 million in assets, doing business in the United States paid no federal income taxes in 2005 despite $372 billion in gross receipts, . . . .. About 25 percent of the largest U.S. companies paid no federal income taxes in 2005 despite $1.1 trillion in gross sales that year, they said.
All you’ve done is establish that our corporate income tax system is broken. And reading this thread, it appears that some people believe that the solution (and the solution to entitlement spending, and illegal immigration) is to raise the tax rate even higher.