"Companies should pay tax in their home country on the profits of overseas subsidiaries."
That creates an incentive for companies to move their headquarters to the most low-tax, business-friendly country. Moreover, companies already benefit society by employing the majority of people. I don't see any moral reason why they should pay taxes at all, and I don't see what companies owe to the countries they're located in.
What you may regard as tax cheat, I regard as acting on one's self interest.
It could be argued that the company depends on the society to provide people to work for them, and so should pay their part of the money required to create those workers (school, healthcare, pensions, etc).
It could also be argued that people needing work are everywhere and, hence, are an abundant resource. If people working at companies already pay tax, why should companies pay tax too? Companies provide work, society provides workers. If society fails to provide qualified workers, companies move to where they can find qualified workers, thus creating an incentive for societies to educate people.
It's the people who need education and health care, not the companies. Taxes on companies should be used to pay for the costs of ensuring a business-friendly environment, such as enforcing the letter of the law, property rights, regulation, etc.
The rich could pay a higher sales tax instead of a higher income tax. You want a Ferrari? 50% tax on it! You want an airplane? Pay tax again.
In the system we have there are so many loopholes that the rich will always afford good lawyers and accountant and get away with it anyways, so we could stop spending money on stupid IRS workers, reduce the size of government, and streamline the taxation process.
That creates an incentive for companies to move their headquarters to the most low-tax, business-friendly country. Moreover, companies already benefit society by employing the majority of people. I don't see any moral reason why they should pay taxes at all, and I don't see what companies owe to the countries they're located in.
What you may regard as tax cheat, I regard as acting on one's self interest.