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Discussion Starter · #1 · (Edited)
President Obama's budget request set for release Monday includes plans for a six-year, $478 billion public works program that would be paid for with a one-time 14 percent tax on overseas corporate profits.

Details of Obama's budget plan released in recent days have been widely rejected by congressional Republicans. But finding a way to enact a new federal infrastructure spending plan has been an unattainable goal on Capitol Hill for several years. Speaker John A. Boehner (R-Ohio) hoped to pass a new highway bill shortly after the GOP took control of the House in 2011 but has struggled to build support among skeptical conservatives.

Obama sought to preempt GOP opposition to his plan in an interview televised before Sunday's Super Bowl.

"I think Republicans believe that we should be building our infrastructure. The question is, how do we pay for it? That’s a negotiation that we should have," he told NBC News in the pregame interview broadcast from the White House.

“My job is to present the right ideas," he said. "If the Republicans think they’ve got a better idea, they should present them. But my job is not to trim my sails and not tell the American people what we should be doing, pretending somehow that we don’t need better roads or more affordable college. One of the things I’ve learned over the last six years is that when I tell the American people very clearly what direction I think the country should go in, sometimes people change their minds. Even Republicans occasionally start agreeing with me — although sometimes a little bit later than I’d like."

According to a document shared by administration officials on Sunday, Obama's plan to rebuild the nation's airports, bridges, highways and railroads would be paid for by imposing a 14 percent tax on up to $2 trillion in profits that companies have accumulated overseas over a number of years to avoid paying corporate income taxes. That's far lower than the current top corporate tax rate of 35 percent. The one-time tax on the repatriation of foreign profits differs from other proposals to offer a "tax holiday" for companies that would pay a much lower tax rate voluntarily to help fund new road construction projects. Obama opposes such tax holidays.

Obama also wants to cut the top corporate tax rate to 28 percent and tax foreign profits at 19 percent, but companies would get credit for any foreign taxes paid, according to the details released Sunday.

Finding ways to compel large companies to repatriate has been a top goal for Democrats, who seized on the issue of closing corporate tax "loopholes" last year in a bid to build support among working-class voters.

Those ideas have been roundly criticized by Republicans, who seized full control of Congress in November. But some GOP leaders, including Boehner, have said they are willing to work with the White House and Democrats on Obama's idea of giving child-care tax breaks to working parents. And other Republicans have partnered with Democrats to propose raising the federal gas tax or imposing other taxes on large corporations to pay for a new highway bill.

But Michael Steel, a Boehner spokesman, expressed skepticism Sunday about Obama's infrastructure proposal. "Everyone agrees that we need to rebuild our crumbling infrastructure, but absent real tax reform, this sounds like a tax hike that will cost more American jobs," he said in an email.

Speaking broadly about tax reform Sunday on NBC's "Meet the Press," House Ways and Means Committee Chairman Paul Ryan (R-Wis.) said that "We want to work with this administration to see if we can find common ground on certain aspects of tax reform. And we want to exhaust that possibility. And if and when that possibility is exhausted, then we will put out what we think ought to be done."

Democrats have said in recent days that they fully embrace Obama's new budget plan and will strongly defend it as Republicans take full control of the budget and appropriations process.

Rep. Chris Van Hollen (D-Md.), a leading Democratic voice on budgetary matters, said last week that Obama's proposals "show that he’s focused on building on the economic progress we’ve seen in the last couple of months and focused on meeting the realities of the middle-class squeeze."

http://www.washingtonpost.com/blogs...s-to-pay-for-u-s-roads-and-bridges/?tid=sm_fb
 

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Discussion Starter · #2 ·
Re: Obama budget: Tax on overseas profits to pay for U.S. roads and bridges

I thought this was worthy of discussion since as enthusiasts we all need good roads to drive cars on or ride motorcycles. I don't want this to evolve into a political debate, let's just discuss the pros/cons of this proposal.
 

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Re: Obama budget: Tax on overseas profits to pay for U.S. roads and bridges

Maybe you can take Barry's last name out of the thread, so we don't end up turning this into a political lightning rod. ;)

I'll add my comments once that's done, so I don't waste my time on an imminently closing thread.
 

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Discussion Starter · #4 ·
Re: Obama budget: Tax on overseas profits to pay for U.S. roads and bridges

Maybe you can take Barry's last name out of the thread, so we don't end up turning this into a political lightning rod. ;)

I'll add my comments once that's done, so I don't waste my time on an imminently closing thread.
I can't change the title of the thread once posted, maybe a mod can if they deem necessary.
 

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Re: Obama budget: Tax on overseas profits to pay for U.S. roads and bridges

Create an additional 10 cent a gallon federal tax on gasoline sales.

I also believe an internet sales tax at the federal level to assist infrastructure in America and lower debt. Brick and mortar stores need to charge tax...and have many other expenses...
 

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Discussion Starter · #8 ·
Re: Obama budget: Tax on overseas profits to pay for U.S. roads and bridges

Create an additional 10 cent a gallon federal tax on gasoline sales.

I also believe an internet sales tax at the federal level to assist infrastructure in America and lower debt. Brick and mortar stores need to charge tax...and have many other expenses...
I agree with the Internet tax, even though I buy a lot of stuff online and work in the tech sector. Internet companies were exempt from tax in the beginning to give a boost to the tech sector. This is no longer needed.
 

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Ok.

So, REAL infrastructure spending, is an absolute necessity, and I'm rather happy we'll be getting some traction on this issue.

However, there needs to be oversight and spending controls, so these dollars are spent wisely, and don't go towards bloated contracts and projects with minimal real benefit.
 

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If you tax overseas profits that haven't been returned to the USA by companies that want to bring back the money tax-free, how does that cost American jobs?


If, you "swallow" the fact that all jobs are created by the Government, then it’s easy, otherwise it's impossible.


Now a bigger question; do foreign companies have to pay tax in their homeland on profits they don't bring-back? I don't know the answer, but an action such as this, could have a counter-effect (negative).

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The more we pay people not to work, the less they'll work and produce to better themselves.


The more we tax people that do work, the less they'll work and produce to better themselves. (unless you count the effort and actions they'll take to avoid paying the taxes).
 

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Raise the gas tax, very simple and no extra bureaucracy need to administer it. Allow contracts to be made, with out the union requirement, don't allow any of the gas tax money to be used on non road projects. Open the books and give us a look at where it is being spent. This is too easy.
 
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When you look at American companies that have hoards of cash overseas and dont want to spend it back in the US and would rather just leave it is an issue. This needed to be fixed a long, long time ago. The tax structure needs to be changed so companies want to spend their earned money on projects in the US.

Raise the gas tax, very simple and no extra bureaucracy need to administer it. Allow contracts to be made, with out the union requirement, don't allow any of the gas tax money to be used on non road projects. Open the books and give us a look at where it is being spent. This is too easy.
I agree, somewhat. The gas tax money just needs to be spent on roads and roads only. Gas tax needs to go to a more mileage based system instead of the gallons used we have now. That will also fix a lot of the "shortage" in funds being available.
 

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Raise the gas tax, very simple and no extra bureaucracy need to administer it. Allow contracts to be made, with out the union requirement, don't allow any of the gas tax money to be used on non road projects. Open the books and give us a look at where it is being spent. This is too easy.
If only it was that easy; remember this: http://online.wsj.com/public/resources/documents/STIMULUS_FINAL_0217.html

Our Amtrak station got a new roof........... "infastructure"
 

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How are they going to enforce this? As a corporate hack and an accountant, I can tell you this is politics than practical enforceable laws. Tax overseas profits will only play as credible to the ignorant that thinks there are money bags GE etc is keeping somewhere in an old submarine bunker in northern Europe. Just like a place 007 would go and retrieve it for us.
 

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US Government Debt has doubled to $18.14 trillions, l guess they need somebody else to pay for the roads.

Opel overseas will have to pay up LOL, more like another $2 billions pumped into them to prop them up.

Overseas investment will increase as a result of this they wont declare a profit, rather than big corporations paying tax to the US government.

Apple ouch it will be tough for them not to make a huge profit overseas, maybe they will buy back shares instead.
 

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If only it was that easy; remember this: http://online.wsj.com/public/resources/documents/STIMULUS_FINAL_0217.html

Our Amtrak station got a new roof........... "infastructure"
Got a headache just looking at it, was it really about stimulus or about creating a job for some bureauracrat, looks like 98% of could have been trashed and we could have saved 787 billion. Gas is not $2.00 because of Barry but inspite of him. If he would like to see it even lower then approve Keystone XL and put even more supply out there, and watch the price go down even more . Again it is that simple. Gas tax for roads and other tax for everything else. Thanks for the info .
 

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US Government Debt has doubled to $18.14 trillions, l guess they need somebody else to pay for the roads.

Opel overseas will have to pay up LOL, more like another $2 billions pumped into them to prop them up.

Overseas investment will increase as a result of this they wont declare a profit, rather than big corporations paying tax to the US government.

Apple ouch it will be tough for them not to make a huge profit overseas, maybe they will buy back shares instead.



But Barry just stepped off the podium, telling everyone how he's cut the deficit by 2/3......................... Laughable for anyone with a brain at best.
 

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But Barry just stepped off the podium, telling everyone how he's cut the deficit by 2/3......................... Laughable for anyone with a brain at best.
This whole era has been a nightmare. Its like America went into an alternate reality, where truth is not truth. Deserters are praised while good officers are punished, etc
 
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