The majority of these untaxed profits will end up getting taxed in the U.S. as wages, bonuses, capital gains, and dividends. The money doesn't disappear into some bucket of evil somewhere or get funneled out to a tycoon living on a Yacht in Sealand's territorial waters.
How does that work given Google doesn't pay dividends and most large corporations don't bring the money back into the United States?
In fact I believe it makes sense for the US corporation to borrow money and pay interest on it than to bring money in from offshore divisions. (As Apple did to pay dividends at shareholders behest)
I'm not going to pretend that equity price represents the fair value of the asset, but none the less, hoards of offshore cash, cash equivalents, and tradable assets do affect share prices. As the majority of Google shares are held by US persons, this money does re-enter the US as capital gains. The taxes may be deferred for a long time, but the money just doesn't disappear once it enters a tax haven.
Of course, if Larry, Sergey, or Eric at some point have kids or ex-spouses who are non-US persons, perhaps the majority of these assets won't re-enter the US in some form.
