CREW and Broad Coalition Call on Congress to Reject Misguided Tax Holiday Scheme
Washington, D.C. – Today a coalition of good government groups and global financial integrity organizations joined with Citizens for Responsibility and Ethics in Washington (CREW) in calling on Congress to firmly reject a scheme that would allow corporations to avoid paying taxes on billions of dollars in profits. The so-called “tax holiday” would permit some of the world’s biggest corporations to repatriate their profits to the United States tax free. Click here to read CREW’s letter.
“The definition of insanity is doing the same thing over and over and hoping for different results,” said CREW Executive Director Melanie Sloan. “Congress went down this road in 2004 and the results were dismal. The world’s biggest corporations don’t need another hand out from Congress. There is no reason for history to repeat itself.”
Independent outside groups as well as non-partisan government analysts such as the Congressional Research Service and National Bureau for Economic Research found absolutely no evidence to show the 2004 tax holiday produced any economic benefit. In fact the analysis showed that, perversely, repatriating corporations re-stocked their corporate coffers by repurchasing their own stock and/or showering their shareholders with bigger dividends. Sadly, most of these firms chose to lay off workers while exploiting the holiday for financial gain.
Last week in an analysis for investors, Goldman Sachs found that another tax holiday would bring little “significant change in corporate hiring or investment plans.” Significantly, Goldman Sachs warned a second “‘one-time’ holiday may condition U.S. multinationals to never routinely repatriate any foreign profits” in anticipation that Congress will announce another such holiday in the future.
“It’s demonstrably untrue that another tax holiday will stimulate the economy and produce more jobs,” Sloan continued. “Claims to the contrary are just pretext for another corporate handout. Big corporations can take care of themselves. Congress should be more concerned about the rest of us.”
Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions. For more information, please visit www.citizensforethics.org or contact Jordan Libowitz at 202.408.5565 or firstname.lastname@example.org.