A number of major American corporations, as a part of a larger campaign called WinAmerica, are currently pushing for a massive new corporate tax holiday. WinAmerica is calling for a tax repatriation holiday that would allow corporations to bring cash they have stashed overseas back to America at a dramatically reduced tax rate.
While this idea may sound appealing, its application in 2004 blew a huge hole in the budget deficit and failed to result in significant investment or job creation (which the corporations had insisted it would). At the end of the day, the policy rewarded corporations and harmed the U.S. Treasury.
Currently, there is a bill before the House of Representatives — the “Freedom To Invest Act 2011” — that would enact such a holiday. ThinkProgress investigated the co-sponsors of this legislation and U.S. senators who have expressed sympathy with a repatriation holiday, and found that they’ve received thousands of dollars from the same corporations bankrolling the WinAmerica campaign. Watch our video investigation:
In addition to the Win America campaign and a number of members of the U.S. Congress, General Electric (GE) CEO Jack Welch recently called for a repatriation holiday. This is particularly ironic given GE’s knack for avoiding taxes altogether.