Don’t Add Tax Holiday to Budget Agreement

Would Be Costly Corporate
Tax and Policy Failure

Don’t Add Tax Holiday to Budget AgreementIn an October 12, 2013 post, the Center for Budget and Policy Priorities (CBPP) Chuck Marr makes the case for why a “Tax Holiday Would Be Bad Addition to Budget Agreement.”

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.

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