Intel repatriated $6.2 billion under the program, which taxed foreign profits at a rate of just 5.25 percent, compared with the normal rate of 35 percent.

The United States imposes taxes on a worldwide basis, taxing profits of American corporations regardless of where the money is earned.

During the decade, Ireland taxed corporate profits from manufacturing at 10%, the lowest in the EU.

The report concludes that the nation's system for taxing overseas profits of American corporations is so flawed that the government would save $55 billion if it simply scrapped the system altogether.

Almost all other nations use "territorial" systems, taxing only profits inside their borders.

In other words, Mr. Forbes would tax corporate profits only when the company earns the money, not again when it pays it out to stockholders in the form of dividends.

The tax codes, as every corporate raider or buyout artist knows, give greater incentives for borrowing than saving, taxing profits that are distributed as dividends but exempting interest payments.

This is partly attributed to the fact that, during the decade, Ireland taxed corporate profits from manufacturing at 10%, the lowest in the EU.

It is unfair, conservatives said, to "double-tax," first by taxing corporate profits and then the money sent to shareholders.

At a minimum, he said, the Government should tax only inflation-adjusted profits.