The Apple revelations may have killed plans for a tax holiday, allowing firms to repatriate some of their overseas profits at a highly preferential tax rate. In 2004, the last tax holiday, $300 billion was repatriated at a rate of 5.25 percent. But 92 percent of the repatriated money went into dividends, stock buybacks and executive bonuses instead of the investment, new hires and R&D that businesses promised.
Congress, in its solicitude for business — especially big business — should keep in mind that, in 2011, individuals paid $1.1 trillion in federal taxes. Corporations paid about $181 billion. Maybe those individuals should have Apple do their taxes.