The Laffer Curve Revisited

So I read in the news that the Senior Senator from New York has an idea.  Senator Schumer is backing an idea that would allow US corporations to repatriate their overseas profits at a lower-than-usual tax rate.  You see most industrialized nations use a territorial tax system where companies with operations abroad pay only taxes imposed on their profits by the host country.  This allows those companies to ship their profits back home (read China for instance) with little or no extra tax imposed.  Here in the US however, any profits that are repatriated back to The Land of The Free are then taxed again at existing US corporate (and state) tax rates.  Remember that the US corporate tax rate currently at 35% is the second highest in the world.  Also remember that these repatriated profits could be used by the corporation to do such things as pay dividends, buy back common stock, or invest in domestic expansion. 

Anyway, Senator Schumer proposes giving corporations a one-year break by reducing the US corporate tax rate for repatriated profits to 5.25%.  Economists estimate that there are north of $1 trillion in profits abroad that could be repatriated.  Under this scenario this could net the US Treasury $525 billion in tax receipt revenues.    This is not the first time that such a proposal was tried.  In 2004, a similar one-year break was put in effect.  According to the IRS more than 800 firms repatriated over $360 billion in profits and delivered a windfall of $18 billion in federal tax revenue.  Could it be that the Laffer Curve is once again validated, and a decrease in a tax rate could result in an increase in tax revenue?