PDA

View Full Version : Rand and Boxer Announce the Invest in Transportation Act




Matt Collins
01-29-2015, 08:45 PM
From a press release:







Sens. Paul and Boxer Announce the Invest in Transportation Act

WASHINGTON, D.C. –U.S. Sens. Rand Paul (R- KY) and Barbara Boxer (D-CA) today announced that they will be introducing the Invest in Transportation Act of 2015. This bipartisan legislation would extend the Highway Trust Fund, which supports millions of jobs. The bill would also boost economic growth and create jobs by providing an incentive for companies to bring back some of the estimated $2 trillion in foreign earnings that are being held overseas.

Sens. Paul and Boxer today released a white paper explaining the details of their proposal, which will be introduced in the coming weeks. To read the document, click HERE (http://www.boxer.senate.gov/press/related/BoxerPaulWhitePaper012915.pdf).

“I am pleased to be working with Senator Boxer on a bipartisan solution to a tax and highway spending problem. The interstate highway system is of vital importance to our economy. All across the country, bridges and roads are deficient and in need of replacement. We can help fund new construction and repair by lowering the repatriation rate and bringing money held by U.S. companies back home. This would mean no new taxes, but more revenue, and it is a solution that should win support from both political parties,” Sen. Paul said.

Sen. Boxer said, “This bipartisan repatriation proposal is a win-win for our economy and our country. First, it will bring back hundreds of billions of dollars in foreign earnings that are sitting offshore, which can be invested here in America to create jobs. Second, the taxes paid on those earnings will be used to extend the Highway Trust Fund, which supports millions of jobs nationwide.

“I hope this proposal will jumpstart negotiations on addressing the shortfall in the Highway Trust Fund, which is already creating uncertainty that is bad for businesses, bad for workers and bad for the economy. I will also be working with Senator Inhofe and my colleagues on the Environment and Public Works Committee on other proposals to pay for rebuilding our nation’s aging transportation infrastructure.”

The legislation would strengthen the U.S. economy and create jobs by allowing companies to voluntarily return their foreign earnings to the United States at a tax rate of 6.5 percent. The rate is only for repatriations that exceed each company’s average repatriations in recent years, and funds must have been earned in 2015 or earlier. Companies would have up to five years to complete the transfer.

The measure would ensure that a portion of the repatriated funds will be used for increased hiring, wages and pensions; research and development, environmental improvements; public-private partnerships; capital improvements; and acquisitions. Under the bill, no funds could be spent on increases in executive compensation, or on increases in shareholder dividends or stock buybacks for three years after the program ends. Also, any company that inverts within 10 years of participating in this program would have to repay the tax incentive with interest.

All tax revenues from the repatriation program would be transferred into the Highway Trust Fund, helping to address the urgent federal funding crisis facing America’s highways, bridges, and transit systems.

The authorization for surface transportation programs will expire on May 31st and the Highway Trust Fund is projected to face insolvency shortly after that. If Congress does not provide additional revenue to the Highway Trust Fund before that time, states will face cash-flow problems during the extremely busy summer construction season. Already Arkansas and Tennessee have delayed or canceled construction projects due to the uncertainty in federal transportation funding.
Addressing this shortfall with a viable and bipartisan transportation funding solution would have a real economic impact across the country, providing funding stability for state and local governments and businesses that rely on federal transportation funding, and helping to create or save millions of jobs.

Economic studies have found that repatriating some of the nearly $2 trillion in foreign earnings held by companies overseas could add several hundred billion dollars to GDP and help businesses create millions of jobs.

acptulsa
01-29-2015, 08:55 PM
I would rather see the federal highway fund eliminated, the trust liquidated and the federal fuel tax annihilated. Much rather. States can do this better without federal interference.

That said, repatriation of foreign earnings sounds good, no new taxes sounds better, not yanking the rug out from under the states this summer is no bad short term goal, and this will help shut up the forces of the 'he's not "moderate" enough to win the general election' crap. And there's nothing wrong with being seen doing things in a bipartisan manner, particularly when there's that to gain.

So, I approve. But I'll approve a damned sight more if he follows up with a move to repeal the federal fuel tax later, and to distribute what's left of the trust fund and close it. He can say it's because the federal government is too undependable to have a role in something as vital as U.S. roads.

economics102
01-30-2015, 10:28 AM
This would be a big win if it gets passed.

specsaregood
01-30-2015, 10:33 AM
I would rather see the federal highway fund eliminated, the trust liquidated and the federal fuel tax annihilated.

I don't really care for the restrictions on the repatriated funds; but what I do like is that when the money comes back; Randal can followup with it as evidence that we should permanently reduce/eliminate the taxes on foreign earned income.

invisible
01-30-2015, 04:52 PM
I would rather see the federal highway fund eliminated, the trust liquidated and the federal fuel tax annihilated. Much rather. States can do this better without federal interference.

That said, repatriation of foreign earnings sounds good, no new taxes sounds better, not yanking the rug out from under the states this summer is no bad short term goal, and this will help shut up the forces of the 'he's not "moderate" enough to win the general election' crap. And there's nothing wrong with being seen doing things in a bipartisan manner, particularly when there's that to gain.

So, I approve. But I'll approve a damned sight more if he follows up with a move to repeal the federal fuel tax later, and to distribute what's left of the trust fund and close it. He can say it's because the federal government is too undependable to have a role in something as vital as U.S. roads.

But the other half of the problem here is sure, that funding might be used for roads, but it's powerful leverage to get the states to do what the fedgov wants, under threat of withholding that funding. A few examples off the top of my head include:
Raising the drinking age
Lowering blood alcohol limits for drunk driving
Real id

specsaregood
02-01-2015, 12:53 PM
It looks like Obama didn't care for this and is proposing his own shitty way to steal money.
http://www.businessinsider.com/r-obama-proposes-14-percent-tax-on-us-companies-untaxed-foreign-earnings-2015-2



Obama wants a one-time tax on the $2 trillion of profits that US companies are hoarding overseas

President Barack Obama's fiscal 2016 budget would impose a one-time 14 percent tax on some $2 trillion of untaxed foreign earnings accumulated by U.S. companies abroad and use that to fund infrastructure projects, a White House official said.

The money also would be used to fill a projected shortfall in the Highway Trust Fund.

"This transition tax would mean that companies have to pay U.S. tax right now on the $2 trillion they already have overseas, rather than being able to delay paying any U.S. tax indefinitely," the official said.

"Unlike a voluntary repatriation holiday, which the president opposes and which would lose revenue, the president’s proposed transition tax is a one-time, mandatory tax on previously untaxed foreign earnings, regardless of whether the earnings are repatriated."

In the future, the budget proposes that U.S. companies pay a 19 percent tax on all of their foreign earnings as they are earned, while a tax credit would be issued for foreign taxes paid, the official said.

TheTexan
02-01-2015, 01:26 PM
Fuck yes, this is what government is for. Roads! Fuck ya!

Koz
02-01-2015, 09:16 PM
Can you say veto. This will never get past Obama.

acptulsa
02-01-2015, 09:20 PM
But the other half of the problem here is sure, that funding might be used for roads, but it's powerful leverage to get the states to do what the fedgov wants, under threat of withholding that funding. A few examples off the top of my head include:
Raising the drinking age
Lowering blood alcohol limits for drunk driving
Real id

My very first post on this forum was on that very subject, though my specific example was Nixon and the insanely unpopular national 55mph speed limit. That, too, was shoved down the throats of states by way of one of the very first examples of threatening to withhold those funds. That is the very reason I said I would much rather see the federal fuel tax repealed outright.

So, it's both unfortunate and fortunate that this isn't going anywhere.