Public pressure for economic patriotism and corporate stewardship must be a part of any permanent solution. It will mitigate market-based profit maximization pressures. Brand identity and consumer loyalty are not subject to the kind of loopholes that riddle the tax code or the partisan gridlock in Washington, D.C.
Corporations are complaining that this (lowered) rate makes them "uncompetitive" and are demanding "corporate tax reform." Because job creators -- or something. This time they threaten to -- or do -- renounce their U.S. citizenship. But are corporate tax rates really "uncompetitive"? And what does that even mean?
The 2004 tax holiday only made things worse because companies realized they could get out of paying taxes entirely if they moved profits offshore and held out until the next holiday season. If we do it again, every company will be compelled to move jobs, factories and profit centers out of the country to stay competitive.