By Daniel Winton, July 3, 2014
Tomorrow marks the Fourth of July, the day on which we commemorate the adoption of the Declaration of Independence 238 years ago. For most Americans, the Fourth of July is a day filled with barbecues, fireworks, and, most importantly, patriotism.
Recently, some politicians and corporate leaders have begun to push for another kind of holiday—a repatriation tax holiday. This holiday would provide a tax break for American multinational corporations (MNC) to return money to the United States from abroad.
In contrast to the Fourth of July holiday, which showcases Americans’ support for and appreciation of their country, this tax holiday would result in MNCs swindling America out of legitimate tax revenue. While a new tax holiday might produce some short-term benefits, it would almost certainly end up as a net negative for the country.