As the government shutdown continue, Senate Republicans have suggested using a repatriation tax holiday to pay for repealing at least part of the sequester. But Congress’ Joint Committee on Taxation (JCT) has actually found that instead of paying for anything, a tax holiday would cost billions of dollars a year because it is:
A costly corporate tax – it would initially boost revenues but then “bleed revenues for years and decades after that; and
A proven policy failure – it could cause layoffs and for profits and investments to get shifted overseas.
Click here for the entire post on CBPP’s Off the Charts Blog.