Tax breaks for tech firms?

Yesterday I wrote a post about tech companies meeting to chart a course for the upcoming corporate tax overhaul expected next year.

In case you missed my longer story about it in today's paper, tech lobbyists are trying to negotiate ways to reduce the 39 percent corporate tax rate, the second-highest in the world, in exchange for giving up other tax protections, such as the deferal on revenues earned overseas.

What's interesting is the nuanced stances lobbyists have on the issue. Ralph Hellmann, lobbyist for the Information Technology industry Council, says he thinks tech companies should be willing to make some concessions, and may have to give up some tax benefits if they can negotiate the overall tax rate down to help U.S. companies stay competitive in a global market. Jonathan Hoganson, lobbyist for the Tech CEO Council, said he doesn't think it's correct to think of the tax deferal provision as a break or incentive. While getting a tax break for research and development activities can be seen as an incentive, the tax deferal is more of a "patch," he said, to fix broken aspects of the tax code.

What do you think? Should the tax deferal provision be removed, as the Obama administration is advocating? Or should big multinational companies be able to continue defering their taxes on overseas revenue?