The U.S. blended tax model encourages U.S. domestic corporations to retain earnings in foreign countries and postpone repatriation as long as possible.

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This is because the U.S. has one of the highest corporate tax rates in the world, and foreign earnings are subject to U.S. taxation upon repatriation. Therefore, corporations may choose to retain earnings in foreign countries and potentially invest them in those countries or use them to fund foreign operations.

The US Blended Tax Model Encourages U