Re my principles for enacting good policies and avoiding bad ones, someone showed me this oped on how to link a repatriation tax holiday to capitalizing an infrastructure bank. Here’s the linkage mechanism:
“In return for obtaining the cash infusion of overseas profits into the infrastructure bank, the Treasury would forgo taxation on a schedule set by auction. By a bidding mechanism, the Treasury would obtain the best deal offered for funding an amount, say $100 billion, in the infrastructure bank.”
If that sounds like a good idea to you, you’re made of hardier stuff than me. No matter how you dress it up, this is a wasteful tax shelter, one that teaches multinationals that if they defer taxation on their overseas’ profits long enough, we’ll eventually let them bring ’em home at a huge discount.