Just one of the loopholes...

Obama is ruffling a few feathers in India by his comments on U.S. firms investing overseas. However, he has a good point. Quite a few multinationals game the system and pay taxes far below the 35% corporate rate. But the tax issue is only a minor one. There are several other loopholes that need to be investigated.

The Hindu : Business News : U.S. wants Indian firms to create jobs in America: "Mr. Obama had said earlier this week, “If you are a business here, entirely located in the US, and investing in the U.S., and hiring workers in the U.S., you are paying a 35 per cent rate”.

“However, if you are a multinational and you are investing in India, and your workforce is in India, and your plants and equipment are in India, but your headquarters are here, you are taking deductions on all the expenses in India, but you are keeping your profits outside the U.S.; and that just doesn’t seem entirely fair”, he had argued."