America is one of few countries that tax international corporate earnings. Most countries now utilize the territorial corporate tax system, which only requires companies to pay taxes on income produced in that country. How does this keep us competitive?
By taxing income earned overseas, American multi-nationals (Apple, Microsoft, etc.) are actually incentivized to not bring their money home. Thus, money that can be used to invest in American jobs and improve our economy is locked up overseas due to our government's greed and belief in punishing the those who wish to invest in their own country.