The Trump $1 trillion infrastructure promise may find funding through tax reform.
A bipartisan group of lawmakers, Reps. John Delaney (D-Md.), Ted Yoho (R-Fla.) and Rodney Davis (R-Ill.), introduced two bills this week aimed at tapping into cash overseas that would use the money to upgrade U.S. roads, bridges and other public works. An estimated $2 trillion in earnings is stashed overseas, they say.
According to TheHill.com, Trump signaled for the first time in a recent White House meeting that he is considering using a “repatriation” tax holiday to pay for part of his plan. The process involves taxing corporate earnings that are being stored abroad when that money returns to the U.S.
One measure sponsored by Delaney and Davis would establish a $50 billion infrastructure bank to finance local transportation, energy, water and education projects and would be funded through the sale of 50-year bonds to U.S. corporations that want to repatriate overseas earnings. In turn, the companies would be allowed to bring a certain amount of overseas earnings back to the U.S. with no federal tax liability for every $1 invested in the bonds.
The other bill, from Delaney and Yoho, would allow U.S. multinational corporations to repatriate earnings at a mandatory, one-time tax of 8.75 percent, a discount on the current 35 percent rate and deferral option.
Can it work? Read TheHill.com's Lawmakers Want Infrastructure Funded By Offshore Tax Reform