Uncle Sam (1996)

Three years after being shot down over Kuwait, the body of Jody's Uncle Sam is returned home for burial.  Jody is a patriotic kid who idolizes his uncle, even though his mother does not share this fondness and is unnerved by memories of her violent brother Sam.

Oddly enough the family follows the old time practice of putting the body in the living room of their house for viewing, rather than in a funeral parlor.  The first night, Sam rises from his coffin, goes outside, and kills a guy on stilts in an Uncle Sam costume who was peeping in windows looking at girls.  Peeping is not patriotic.

The next day everyone heads to the fourth of July festival downtown, including Sam.  He's going to make people pay for their disrespect.

There's nothing special about this, except that off the top of my head I can't think of anther fourth of July horror movie.