The 2004 tax holiday was a bad idea for trying to grow the economy. However, there is a clear difference between a short-term tax holiday and a long-term lower

The 2004 tax holiday was a bad idea for trying to grow the economy. However, there is a clear difference between a short-term tax holiday and a long-term lowering of repatriated fund taxes. The problem is that investment isn't spurred by short-term windfalls, it's a slow, long-term strategy to insure a particular business is competitive. If I was coincidentally looking to invest in something in the US during the tax holiday, I'd be in luck. But if I was looking the previous year or the following year, I'd still be facing a massive 35% burden over leaving the funds overseas. This creates a pervasive attitude that businesses don't even begin thinking about investing foreign funds domestically. http://www.heritage.org/taxes/report/would-another-repatriation-tax-holiday-create-jobs http://www.heritage.org/taxes/report/would-another-repatriat...