Is another tax holiday a good idea?

[ugonow]

Not a bad deal.Borrow money here, write it off on your taxes, invest it overseas and defer the taxes on the profit until the next tax holiday.----- << "The "fundamental problem" with a tax holiday is that it sends a message to corporations to "'keep more profits offshore and then you can bring 'em back and pay virtually no tax,'" Johnston says.

Furthermore, there's no good way to ensure that a tax holiday will lead to job creation, he says, citing the last time this was tried — via the 2004 Jobs Creation Act — as evidence of the folly of tax holidays.

Of the roughly $90 billion of profits repatriated in 2004, Pfizer was by far the biggest beneficiary, saving $11 billion in taxes, Johnston recalls. "They started destroying jobs the day they brought it back" and have cut 40,000 U.S. jobs in the ensuing years.

The claim the tax holiday led directly to job cuts is subject to debate, and the WIN Campaign touts the economic benefits of the 2004 holiday. Still, independent studies have shown the bulk of the 2004 tax holiday went to the benefit of shareholders.

There's nothing wrong with that per se, Johnston says. But dividends are preferable to share buybacks, which typically benefit executives with stock options vs. long-term shareholders, he argues.

Meanwhile, tax holidays on overseas assets do nothing for purely domestic-focused companies, which tend to be smaller and family owned, Johnston notes.">>

finance.yahoo.com/blogs/daily-ticker/bill-clinton-likes-corporate-tax-holiday-awful-idea-171021754.html

[ugonow]

I would not be surprised if they just keep defering,letting profits pile up,and just sit and wait for the next holiday to be called.I think the author is on to them....