Would Be Costly Corporate
Tax and Policy Failure
In 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.