A case for a corporate tax holiday

Our nation needs more revenue flow to create more jobs. With a very sick real estate market causing people to feel poor and spend less, the jumper cables are still not working and the battery is running low. Our FED is pushing on a string, and our country's leadership are just pushing on one other.

A "Tax Holiday" for corporate profit repatriation seems unethical and unnecessary. A reliable study of a past program says that such a holiday did not create jobs; that $1/$1 went to stock share buy-backs (increase of share price) and to special dividends. In other words, all the money got distributed to stock-holder investors.

Corporations will not repatriate unless they get a break, and so this money won't ever come back on shore unless something is done.

How about some "tax judo" to get jobs going? I think we should do two things with a tax holiday. Allow it to happen, but not make it free. Instead of a tax holiday, make it a "tax discount-day".

First, do not make repatriation tax-free. Make it tax-reduced. I'm not an expert to even list a percent. It is currently 35%. Don't make it zero percent. Some of this repatriation belongs to The People of the United States, who sweated to make this country free for corporations to become great.

I can argue that this should trigger another tax holiday: a tax holiday on middle-class wage earners, who are perfectly matched to trigger the exact kind of economic activities (shopping!) that will trigger job growth. For for every tax dollar in repatriation, reduce wage earner taxes temporarily by this amount.

The holiday also does not start until we get tax reform: eliminate the "Bush-era tax vacation" on the wealthy, so that when they get their corporate dividend and special distributions from repatriated profits, they have to give some of this to The People of the United States, again in the form of reduced taxes on the type of people whose activities create more jobs for their peers.

Let's get that off-shore money working for us. And let's not let that off-shore money just pass over our heads and get reshuffled.