The push for a corporate tax holiday to encourage repatriation of an estimated $2.1 trillion in foreign profits seems to have gained traction again, thanks to a recent proposal from former President Bill Clinton, but such an idea could provide multinational companies with the incentive for earnings manipulation, according to a new study.

Clinton suggested earlier this month granting U.S. multinationals a tax holiday on their repatriated profits as long as they used a portion of the repatriated funds to buy bonds to rebuild the nation's infrastructure. The idea has drawn support from both sides of the aisle in Congress.

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